How Bakkt Could Affect the Bitcoin Price Unlike Existing Futures Markets
发布时间：2018-12-24 16:47:05 发布人：TokenString

Bakkt, a Bitcoin futures market operated by ICE, the parent company of the New York Stock Exchange (NYSE), is close to receiving a green light from the U.S. government.

As CCN reported on December 21, Bakkt has been working with the Commodities and Futures Trading Commission (CFTC) to have its business plan approved, which revolves around the physical delivery of Bitcoin to its investors.

What Separates Bakkt From Other Bitcoin Futures Markets

wall street bitcoin crypto cryptocurrencyBitcoin’s Futures Market

Existing Bitcoin futures exchanges in the U.S. market such as CME and CBOE are cash-settled, meaning that their contracts are settled with the U.S. dollar and not with Bitcoin.

As such, given the limited supply of CME and CBOE contracts, the effect of the two futures market on the actual price of Bitcoin could be minimal.

Kelly Loeffler, the CEO of Bakkt, said that cash-settled contracts have some benefits but a physically-settled Bitcoin futures contracts are necessary to strengthen the infrastructure supporting the asset.

“It’s great to have cash-settled, but there’s a need for physical delivery,” said Loeffler, emphasizing that the objective of Bakkt is to create a comfortable environment for investors to invest in digital assets.

The physical delivery of Bitcoin guaranteed by the Bakkt Bitcoin futures market will provide investors with crypto asset custody and deliver the asset to every investor in the market. Depending on the demand for the asset and the trading activity on Bakkt’s exchange, the scheduled launch of Bakkt in January could affect the supply of the dominant cryptocurrency and lead to an increase in the Bitcoin price.

Jake Chervinsky, a government enforcement defense and securities litigation attorney at Kobre & Kim, said:

Also noteworthy is the fact that Bakkt will custody and deliver real bitcoin. That means institutional inflows would reduce supply and thus (maybe) increase price too. This is different from other regulated futures markets like CME and CBOE, which only deal in cash-settled futures.