A week ago, Ethereum World News had notified the crypto community that the launch of Bakkt might be postponed for a second time due to delays getting the necessary approvals to launch by the 24th of January. In the report, we had explored how the Commodity Futures Trading Commission (CFTC) might need extra time to process Bakkt’s application for an exemption to its custody solution for Bitcoin.
CFTC regulations require that customer funds be held by a bank, trust company or futures commission merchant (FCM). In the case of Bakkt, they will be storing BTC in their own warehouse on behalf of their clients.
Confirmation from ICE that the Launch Will Be Postponed
Earlier today, ICE (the parent company of Bakkt) published a notice on its website explaining that the earlier mentioned January 24th launch date of Bakkt will have to be amended. The publication went on to add that they will provide an updated launch timeline in early 2019.
Following consultation with the Commodity Futures Trading Commission, ICE Futures U.S., Inc. expects to provide an updated launch timeline in early 2019, for the trading, clearing and warehousing of the Bakkt Bitcoin (USD) Daily Futures Contract.The launch had previously been set for January 24, 2019, but will be amended pursuant to the CFTC’s process and timeline.
Other Possible Factors Contributing to the Delay
The United States government is currently going through what is known as ‘a government shutdown’ due to the 2019 budget impasse brought about by President Trump demanding funding for the border wall with Mexico. President Trump has demanded $5 Billion to be allocated to the Department of Homeland Security that will proceed in building the wall. The ongoing shutdown has resulted in key government functions being halted as well as federal employees going for a significant amount of time without pay.
The CFTC – being a government agency – has also been affected.
Bakkt Secures $182.5 million from 12 Partners and Investors
Bakkt’s CEO, Kelly Loeffler, announced via a Medium post that they had completed their first round of funding that raised $182.5 million from 12 partners and investors who believe in the future of digital assets.
The partners and investors include Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Intercontinental Exchange, Microsoft’s venture capital arm, M12, Pantera Capital, PayU, the fintech arm of Naspers, and Protocol Ventures.
Ms. Loeffler also explained their ongoing cooperation with the CFTC to get the necessary approvals.
Our team has been working closely with the Commodity Futures Trading Commission for the better part of 2018.
At an industry level, regulatory approval for physically delivered and warehoused bitcoin will establish and amplify the voice of U.S. authorities as the digital asset market evolves globally.
We have filed our applications and the timing for approval is now based on the regulatory review process.
What are your thoughts on the launch of Bakkt being postponed a second time? Please let us know in the comment section below.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.