Bakkt, by ICE, wants to make Bitcoin as mainstream by allowing its futures to be traded on Wall Street under the regulation of the U.S. Federal Government. After numerous delays and setbacks over the last year, today Bakkt’s CEO announced that they are officially launching their product on the 23rd of September 2019.
Following several days of a severe price decrease, Bitcoin’s price is experiencing a sharp spike after a long-awaited announcement from Bakkt Futures.
Bakkt: Long-Anticipated Launch
ICE (Intercontinental Exchange) had initiated Bakkt Futures in the purpose that traditional investors who want to hedge to cryptocurrencies like Bitcoin, might be able to do it under regulation.
Bitcoin’s main criticism over the years has been the lack of any regulation and possible manipulated market activities. Bitcoin futures will be “exchange-traded on ICE Futures U.S. and cleared on ICE Clear US, which are federally regulated by the CFTC.” They will also be backed by the existing guarantee fund by ICE Clear US and protection of $125,000,000 in insurance.
Bakkt’s mission to revolutionize the understanding behind Bitcoin was first published over a year ago. After several disappointing launch delays, the impactful news broke out today – the 23rd of September is the date when the fund will be actively working. According to Kelly Loeffler, Bakkt’s CEO:
“Our contracts have already received the green light from the CFTC through the self-certification process and user acceptance testing has begun. With approval by the New York State Department of Financial Services to create Bakkt Trust Company, a qualified custodian, the Bakkt Warehouse will custody bitcoin for physically delivered futures.”
Bullish Effect For Bitcoin
Just as the positive news was released, Bitcoin saw a price increase of over $300 in a matter of minutes. The price. Only one day following the massive price drop to $9,400, Bitcoin is now trading around $10,400 amid the news.