Bakkt’s controversial cash-settled futures platform will launch on December 9, much to the consternation to some Bitcoin fans. The platform, which pits Bakkt against the likes of CME, will allow institutions to bet on the future price of Bitcoin without needing to hold the cryptocurrency, which was the platform that Bakkt marketed itself on ever since the summer of 2018 when it was first announced.
Bakkt No Longer Backed
Bakkt announced the move towards cash-settled futures ten days ago, drawing criticism from elements of the community who claims that the practice, currently pioneered by CME, allows for manipulation of the markets by Wall Street. Even those who don’t share this view in totality must be somewhat disappointed by the fact that Bakkt spent over a year marketing themselves as the only platform for physically-settled Bitcoin futures, only to respond to “customer demand” eight weeks later and add in a cash-settled option. Big names in the Bitcoin sphere hyped up the Bakkt offering prior to its launch (which, let’s not forget, is derived from the word ‘backed’, as in ‘backed by Bitcoin’), claiming that it would bridge the gap between institutions and Bitcoin by forcing them to hold some. That necessity is now eradicated, and Bakkt can rely on its substantial network to try and prise some of the market share away from CME, which looks more and more like it was their plan from day one.
You bought BAKKT dream for 2 years. Time for REALITY Check
TWO record volume days at BAKKT…both days blood on the streets
BAKKT = WALL St.
You want to believe in “Physical” bitcoin with Wall St? Good luck with that!! Rehypo is coming!!
Here is for your record pic.twitter.com/FpUi8JRVqT
— Bitcoin, Gold, Silver & Geopolitics (@Super_Crypto) November 23, 2019
Bakkt Volume Soars as Bitcoin Crashes
The new offering will be listed on the Intercontinental Exchange, Inc (ICE) Futures Singapore and cleared by ICE Clear Singapore, which are regulated by the Monetary Authority of Singapore. Lucas Schmeddes, President & COO of ICE Futures and Clear Singapore said that the new cash-settled futures contract will build on “the success of our deliverable futures contract” and will “leverage ICE’s regulated, globally-accessible market to offer a safe, secure and compliant environment for the trading of bitcoin.” Bakkt will be going into its new offering on the back of a great run, having set two volume records in recent days, during which time the BTC price has crumbled, erasing all the gains made when Xi Jinping personally endorsed blockchain in late October.