- Bakkt is expected to hit the New York Stock Exchange today
- Bakkt merged with VPC on Friday and announced a listing on the same day
- The Bitcoin custodian launched in 2018 amid much fanfare
Bitcoin custodian Bakkt is expected to launch on the New York Stock Exchange (NYSE) today under the ticker ‘BKKT’. Bakkt, which launched to much fanfare in 2018, is owned by Intercontinental Exchange (ICE), the company that also owns the NYSE, presumably smoothing the process somewhat. The move was given the green light after Bakkt merged with VPC Impact Acquisition Holdings, a deal that was finalized on Friday.
Bakkt Was Heralded As Institutional Onboarding Platform
Bakkt was heralded as a breakthrough in institutional adoption when it launched in 2019 following several delays, chiefly because its format involved the custody of physical bitcoin. This was in addition to a collaboration with Starbucks at a time when it was more difficult for bitcoin holders to spend their holdings in stores.
A year later the company introduced a cash-settled Bitcoin product which drew criticism from the crypto community as it undermined its physically-backed offering, with one critic calling it a “milking cow for Wall Street”.
$2 Billion Valuation Following Merger
Despite the heavily publicized launch, Bakkt has traded comparatively little volume-wise compared to other platforms – its 24hr volume is just over 2% that of CME’s Bitcoin futures offering.
Bakkt may be experiencing low volume compared to its competitors but this hasn’t stopped its evolution. 10 days ago it announced that holders of its Bakkt card could add it to the Google Pay wallet to enable contactless payment. The VPC/Bakkt merger and NYSE listing will value the new company at around $2 billion, showing that there is clearly plenty of value in the company despite its low position in the Bitcoin trading rankings.