The news of the launch of Bakkt on September 23 certainly inspired the market. By the weekend, it turned green, only one bitcoin in the last 48 hours has added more than $ 600. Twitter users welcomed this news with a series of excited tweets.
Bakkt is a Bitcoin futures and digital asset exchange founded by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE). Several large organizations, including the Boston Consulting Group (BCG), Microsoft and Starbucks, are working to create the exchange.
The crypto community has been waiting for a whole year since the ICE announced its plans to create a platform, in September Bakkt should finally open.
Here are 5 reasons why starting Bakkt is important for the cryptocurrency market :
- Bakkt's connections with Wall Street . Bakkt was founded by the founder of the world's largest New York Stock Exchange. This initiative may inspire other major crypto-friendly exchanges, such as Japan and Hong Kong, to create regulated platforms for crypto assets .
- The authority of Bakkt . One of the reasons new investors are reluctant to include digital currencies in their portfolio is the lack of confidence in existing platforms. Thanks to the charter of the New York State Trust from the New York State Department of Financial Services (NYDFS), the approval of the Commodity Futures Trading Commission (CFTC), and the relationship with major global companies, Bakkt is credible as a project. Thus, the platform will attract investors to the crypto space, including the most cautious.
- Attracting institutional investment . The cryptocurrency space did not attract institutional investors due to the lack of institutional-level infrastructure. Changing the situation, Bakkt attracts institutional investors, so crypto assets should be recognized as a financial instrument.
- Mass adoption . One of Bakkt's goals is to ensure the seamless use of cryptocurrency in everyday life. Despite the fact that Bakkt does not talk much about their plans to achieve this goal, it is believed that the exchange will allow customers to refuse to pay with cards in favor of scanning bitcoin applications. Starbucks is a potential place where consumers can spend their bitcoins . According to Maria Smith, Starbucks Vice President of Partnerships and Payments, “as a leading retail chain, Starbucks will play a key role in developing practical, reliable, and regulated applications that convert digital assets into US dollars.” This step will undoubtedly serve the widespread adoption of cryptocurrency.
- Entering BTC in an asset basket . Bakkt will provide major money managers with the opportunity to offer Bitcoin-based financial instruments, including mutual funds, pension funds and ETFs, as regulated investments. Bakkt's vision can be realized if US regulators have no objection. The SEC has been delaying the decision on the proposed Bitcoin ETFs since last year, and even now it has again been postponed to October. With the launch of Bakkt, the SEC can speed up the Bitcoin-based asset verification process.
Publication date 08/18/2019
Share this material on social networks and leave your opinion in the comments below.
