What exactly is Bakkt

Bitcoin: price driver Bakkt futures?

On September 23, the time has finally come. After several delays, the so-called Bakkt futures are launched. A new era begins in the crypto community, because the planned futures are likely to attract funds from institutional investors in particular.

After the start was repeatedly postponed in the recent past due to regulatory hurdles, September 23rd is now fixed. But what are these futures and where do the enormous expectations come from?

Bakkt is a project of the Intercontinental Exchange (ICE), one of the largest players in options and futures trading and the parent company of the New York Stock Exchange. The planned futures are actually deposited with “physical” bitcoins and the contracts are also closed out with real bitcoins.

And this is exactly where the big difference to previous Bitcoin futures, which started at the CME (Chicago Mercantile Exchange) at the time, lies. Here you could bet on future developments in the Bitcoin price, but the actual closing out never took place with Bitcoin, but mostly with dollars.

Therefore, the price of the underlying product, in the case of Bitcoin, was not affected. With the Bakkt Futures, a real innovation is pending, which many hope for a clearly positive price development. In June, Bakkt COO Adam White compared the upcoming approval of the futures with the moon landing.

According to a tweet from Bakkt, so-called warehouses will be available to customers as early as September 6, where Bitcoins can be securely deposited for future future trades.

On Sept 6, our Warehouse will begin offering secure storage of customer bitcoin to prepare for the launch of Bakkt Bitcoin Daily & Monthly Futures when they launch on Sept 23

These contracts will enable physical delivery of bitcoin with end-to-end regulated markets and custody

- Bakkt (@Bakkt) August 28, 2019

Crypto bull Anthony Pompliano also sees the start of the trading platform as positive and as the next big step to attract institutional funds. In one Interview with CNBC Pompliano announced that Bitcoin has now finally arrived on the market as an investment vehicle.

"We have now reached the crucial point where Bitcoin can no longer be reversed. Sooner or later, Bitcoin will be found in the portfolios of all institutional investors."

Anthony Pompliano CNBC

There is no denying that the Bakkt futures are a real innovation. They would pave the way for institutional investors and could therefore trigger another rally. However, be warned against too much euphoria.

The CEO and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions on the following financial instruments mentioned in the publication or related derivatives that benefit from the price development resulting from the publication: Bitcoin.

Author Nicola Hahn directly holds positions on the following financial instruments mentioned in the publication or related derivatives that benefit from any price development resulting from the publication: Bitcoin.

Book tip: The crypto decade

Bitcoin was invented in 2008. A decade later, cryptocurrencies have made millionaires and are said to have the potential to change the world. We regularly encounter keywords such as Bitcoin, IOTA or blockchain in the media. In his book, Bitcoin star investor Robert Küfner looks back on the first ten years of digital currencies. Peppered with anecdotes from the world of cryptos, it lets the reader participate in an incredible development and shows what upheavals can be expected in the realm of Bitcoin and Co in the near future.

Authors: Küfner, Robert A.
Number of pages: 208
Release date: 20.09.2018
Format: Soft cover
ISBN: 978-3-86470-600-4