Bakkt Begins Beta Launch on July 22, Analysts Expect It Could be Huge – Here’s Why So

One of the most anticipated bitcoin futures by Bakkt is launching beta testing, allowing user testing on July 22, 2019. The futures contract is powered by Bakkt, a subsidiary of the Intercontinental Exchange (ICE) that founded the New York Stock Exchange.

This Could Be Huge

The day, Bakkt announced Bitcoin futures contract, the crypto community was quite sure that it will more possibly bring institutional investors to the crypto industry. In many specific terms, it will bring big money big players into cryptocurrency which will more likely enhance the total market cap of the sphere by orders of magnitude.

In essence, Bakkt is backed by a diverse array of big names, including Microsoft Inc. Starbucks Corporation which makes its bitcoin futures even more interesting. Moreover, it is expected to be a game-changer in the crypto investment industry. As the platform announces that it begins user acceptance testing for its Bitcoin futures contracts on Monday (July 22, 2019), many speculate that it will be a catalyst and quite a big deal for the crypto industry.

According to ICE’s CEO and Chairman, Jeff Sprecher, ICE’s investment in Bakkt is “a bit of a moonshot bet” – a term used by former American president John F.Kennedy on Neil Armstrong’s land on the lunar surface. The blog announcing Bakkt’s beta launch on July 22, states that;

On July 22, two days after Apollo 11’s 50th anniversary, Bakkt will initiate user acceptance testing for its bitcoin futures listed and traded at ICE Futures U.S. and cleared at ICE Clear US.

Moreover, Adam White, the Chief Operating Officer at Bakkt reveals that the company’s Bitcoin futures will be listed and traded on ICE Futures U.S. as well as cleared at ICE Clear U.S.

Institutions should not dismiss crypto-asset

Unlike CME Grup and Cboe’s bitcoin futures that featuring cash-settled, Bakkt’s Bitcoin futures on the exchange are physically settled. It means that parties experience transfers of Bitcoin from the Bakkt Digital Asset Warehouse upon the end of the contract period.
While Bakkt is scheduled to launch these bitcoin futures today, Fundstrat’s Quant strategist, Sam Doctor states that this could be a huge catalyst for institutional participation in the crypto market.

Referring to Bakkt’s recent institutional summit at the New York State Exchange, Fundstrat claims that this is a big opportunity that accelerates entry of traditional institutional investors. The Fundstrat’s takeaways from the Bakkt Digital Asset Summit mentioned that;

“There appears to be a critical mass of adopters ready to come on board on Day 1 of the Bakkt launch, with the sales team gaining traction among brokers, market makers, prop trading desks and liquidity providers.”

This Fundstrat notes further mentioned views of Blocktower Ari Paul who reportedly said that ”institutions should not dismiss crypto-asset”, explaining;

With 200%-300% CAGR and low to no correlation to traditional assets, investors should size their position accordingly rather than avoid crypto.

He strongly affirmed that crypto is here to stay and “institutional CIOs who make large crypto gains aren’t acting responsibly when avoiding to add in their funds.

While this is a good deal for big boys, it has no positive effect on the price of the crypto market yet. At the press time, the market is still dull and Bitcoin is trading under $10600 figure whereas other altcoins are experiencing the eventual downfall.

Crypto Market on July 22
Crypto Market Price | Coinmarketcap

Image Source – shutterstock

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