If there is approval on Bakkt by the US Commodity Futures Trading Commission (CFTC), then the Bitcoin futures trading system could contribute to a strong Bitcoin turnaround.
The previous post on bakkt clearly describes that the venture’s founder, Intercontinental Exchange (ICE), is no doubt the world’s most successful financial exchange operator. Which is also led by the visionary entrepreneur Jeffrey Sprecher, ICE also owns The New York Stock Exchange and leading futures exchanges in many major categories of the asset.
This extraordinary track record seems to appeal to institutional investors, whose regulations require investing through government-regulated channels. The lack of approval of US regulatory helps to explain why many institutions have sat on the crypto sidelines. Bakkt has also appealed to some big financial institutions.
JP Morgan has recently announced the launch of its own centralized cryptocurrency. And that may not prevent JP Morgan from using Bakkt to trade Bitcoin for its own account, or for clients.
Bakkt is designed to both facilitate trading and strengthening Bitcoin’s fundamentals. According to Bakkt, partnerships with tech giant Microsoft and retailer Starbucks will help in the development of the next generation.
According to Sprecher’s statement during ICE’s report, the ventures are said to be launched later this year.
Bakkt has also claimed that the delay in the decision has allowed it to build a powerful base for institutions that are interested in its services. It has also raised $182 million for the venture and has also invested a considerable amount in the project, estimating its annual costs for Bakkt at over $20 million.
It seems quite possible that Bakkt could receive the approval from the US government for its venture this year. If it happened so, then the investors could experience a new level of confidence in the future of Bitcoin and in the market of cryptocurrency.