Bakkt Futures’ Launch in Focus as Bitcoin Hints Price Crash
The bitcoin market is calm even though it awaits the launch of a very bullish product: a set of physically-delivered futures.
Intercontinental Exchange (ICE), the world’s second-largest exchange by market cap, is , one daily and other monthly, from September 23. The contracts, backed by Atlanta-based digital asset firm Bakkt, have received approval from the Commodity Futures Trading Commission (CFTC). Meanwhile, Bakkt also has gained custodianship rights to customers’ bitcoin following permission from the New York Department of Financial Services (NYDFS).
The event bids to promote bitcoin trading among institutional investors, a class of monies that till now maintains a safe distance from cryptocurrencies because of their unregulated nature. Speculators see the launch of Bakkt futures as a means to attract substantial capital inflows from Wall Street, which would send the bitcoin prices higher.
Bitcoin Investors Feeling Cold-feet
But as the date of the Bakkt launch is nearing, the same speculators are feeling cold-feet. Bitcoin’s volatility has hit its 4-month low going down, as reported by Forbes , indicating that traders are looking at each other while wondering who among them would make the first move.