Bakkt to Open More Doors for Investors
According to one Chief Executive Officer of a foreign exchange platform, Bakkt, a digital asset platform provides a feature that has been a consistent topic of demand by the market. Chief Executive Officer of exchange platform LMAX, David Mercer believes that Bakkt and its one-day futures contract that personally and physically delivers BTC will revolutionize the entire market.
As opposed to futures contracts that are concluded and settled in cash where a recipient will cover the cost or the difference in price paid for the acquiring the contract and its settlement cost, physically-settled contracts pay the receiving trader in solid Bitcoin.
Garret See of DV Chain, an investment company, states that this results in much safer trading and conducts more efficient simultaneous trading. Tom Lee of Fundstrat has also stated that this provides a significant advantage over major cryptocurrency exchange platforms like Binance and Coinbase.
This specific feature that Bakkt offers is similar to that of the BTC Exchange-traded fund by VanEck and SolidX, making that latter participant unnecessary. Futures contracts that are settled in person also place a new milestone in terms of development on the market due to the fact that a BTC groundwork would be needed as a means of transferring digital coins.
Additionally, full approval will be required by the CFTC and the platform intends on acquiring all of the requirements and that as a primary element of Bakkt, November will see the launch of one-day BTC deliveries as well as physical storage following analysis and approval by the CFTC. Trading Technologies’ Patrick Rooney stated, in regards to the situation, that it is an incredibly important deal.
Many others have stressed the vital need for custodial solutions from a trusted party. As Michael Novogratz, an elite investor has stated, this would be the trigger for the next surge in the price of Bitcoin. He says that the next climb by Bitcoin in price will require custodial services from a trusted party and will also require more transparency in regards to regulations.