• Crypto Lists
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Altcoin
  • Advertise With Us
  • Join our Telegram Community
Newsletter
ItsBlockchain
  • Bitcoin
    Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

    Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

    Bitcoin ETFs could have the same result as CME group futures launch in 2017

    Bitcoin ETFs could have the same result as CME group futures launch in 2017

    featured image

    How Bitcoin can be hacked?

    keep bitcoin safe

    Keep Your Bitcoins Safe: All You Need to Know About Crypto-Cyberthreats

    featured image

    Bitcoin IRA – Everything You Need to Know

    A trillion dollar tsunami is about to hit Bitcoin

    A trillion dollar tsunami is about to hit Bitcoin

    featured image

    Why Bitcoin will always be the number one cryptocurrency? Explained

    Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

    Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

    On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

    On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

    Trending Tags

    • Crypto Gems
    • NFT
    • DEFI
    • Crypto Lists
    • Altcoin
    • Crypto Market
    • Guide
    • IBC Capital
    No Result
    View All Result
    • Bitcoin
      Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

      Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

      Bitcoin ETFs could have the same result as CME group futures launch in 2017

      Bitcoin ETFs could have the same result as CME group futures launch in 2017

      featured image

      How Bitcoin can be hacked?

      keep bitcoin safe

      Keep Your Bitcoins Safe: All You Need to Know About Crypto-Cyberthreats

      featured image

      Bitcoin IRA – Everything You Need to Know

      A trillion dollar tsunami is about to hit Bitcoin

      A trillion dollar tsunami is about to hit Bitcoin

      featured image

      Why Bitcoin will always be the number one cryptocurrency? Explained

      Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

      Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

      On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

      On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

      Trending Tags

      • Crypto Gems
      • NFT
      • DEFI
      • Crypto Lists
      • Altcoin
      • Crypto Market
      • Guide
      • IBC Capital
      No Result
      View All Result
      ItsBlockchain
      No Result
      View All Result
      Home bitcoin

      Bakkt and Bitcoin : Journey of developments and speculations from announcement to launch

      Nivesh Rustgi by Nivesh Rustgi
      March 18, 2020
      in bitcoin, Crypto Market
      0 0
      0
      featured image
      38
      SHARES
      284
      VIEWS
      Share on FacebookShare on Twitter

      Bakkt (pron. backed) is an institutional grade online derivatives platform that offer contracts on Bitcoin. Currently, it offers both futures (daily and monthly) and options contracts.

      The first announcement of the Bakkt trading platform was made on 3rd August 2018. After continual delays in the ETF proposals, Bakkt’s regulated platform was perceived to be a game changer.

      Here’s what Bakkt brought to the markets:

      • First regulated platform of its kind, where the contracts are settled in Bitcoin itself, hence, recognizing its exchange appeal.
      • Bakkt’s parent company is ICE (Intercontinental Exchange), the parent company of NYSE (New York Stock Exchange), the largest stock exchange in the world.
      •  BCG, Microsoft and Starbucks were reportedly working with Bakkt to provide security and also convert digital assets into US dollars for spending at Starbucks.

      These are times in the crypto market, when apart from futures on CME and CBOE futures exchange, the market has no other institutional support or positive regulatory outlook.

      Effectively, it meant that the world’s largest coffee chain along with the New York Stock Exchange was getting involved with Bitcoin. This was a big deal towards its adoption.

      Nevertheless, the markets were still under tremendous sell-off after the 2017 bubble, and was in a bearish long-term trend.

      Earlier, the CME futures launch on 17th December 2018, marked the top in Bitcoin [BTC] around $20,000. The launch of Bakkt, despite being positive news, had a similar ring to it following the announcement.

      Time Lines on Bakkt in 2019

      On 20th November, the CEO Kelly Loeffler announced that the dates for the launch have been pushed from December to 24th January on account of regulatory concerns. This was reminiscent of the SEC’s delay of the Bitcoin ETF.

      Co-incidentally, the initial launch date of 12th December was near the bottom in Bitcoin. Bitcoin bottomed on 15th December, 2018 with a low in the range of $3100-$3150.

      Eventually, the launch date of 24th January was postponed as well. Along with bearish technicals, this news further increased the selling pressure in the crypto markets.

      The markets were forced to believe that Bakkt would meet continual delays like the ETF. 

      Institutional Development in 2019

      Bakkt‘s design is the first of its kind, it involves physical delivery of Bitcoin on the profit/loss of derivatives. Hence, along with speculating on Bitcoin it must also provide secure and trusted custody arrangements. This is where the roadblock was in terms of regulatory approval, because the futures contract had already been approved by the CFTC in December itself.

      Eventually, 2019 saw an increasing institutional development in the space. Fidelity Investments began a custody service for Bitcoin which would serve derivatives funds like Bakkt.

      Furthermore, Gemini and Coinbase also procured licences to operate as a regulated custodial platform even in New York. The Grayscale GBTC was one of most successful of them all, grabbing the attention of fund managers all over.

      The #DropGold Campaign was launched on 2nd May 2019, along with institutional development, this advert marked the first real comparison of Bitcoin with gold in the mainstream. 

      The GBTC index represents the Bitcoin Investment Trust Fund which can be traded publicly and to accredited customers.

      A Premature Launch by a Rival

      On 31st July 2019, LedgerX, a digital assets derivatives platform announced a physically deliverable product ahead of Bakkt and EricX (backed by TD Ameritrade). However, the CFTC disapproved of the launch immediately claiming that the approvals have not been passed yet.

      Paul Chao, the CEO of LedgerX notes,

      if the government does not do the right thing, we will sue them, period. already talking to our lawyers about this.

      According to the team of LedgerX, the CFTC was giving preferential treatment to Bakkt and ICE. Despite having complied with all their laws before Bakkt, allegedly, the commission was bent on Bakkt’s launch first.

      Eventually, despite the claims, Bakkt won the race and launched its derivatives platform on 23rd September.

      Buy the Rumor, Sell the News

      The launch of Bakkt turned out to be exactly like the launch of CME – resulting in a downfall. The price of Bitcoin fell drastically as it reached the near end of another descending triangle in Bitcoin. Not that Bakkt was alone responsible for the drop. However, given the market reacts on the very next, it was quite dramatic.

      The announcement of the launch was made on 17th August. During the month following the launch, investors hoped that Bakkt launch would reverse the bearish trend. However, after the launch on 23rd, BTC closes down 11.8% the following day with a drop from $9780 to test lows below $8000. 

      Given the design and the backing of Bakkt, it had a lot of influence on the market sentiments. It was also responsible for the institutional development around Bitcoin. Nevertheless, the direct purchase on Starbucks using Bitcoin was still away. Financial and crypto analyst Mati Greenspan noted,

      If a regular exchange is the on and off-ramps to bitcoin, this is an eight-lane superhighway. You certainly aren’t going to judge how good the highway is based on how much traffic it has on opening day.

      Furthermore, it is nothing but a speculative platform, and the leverage on other derivatives exchanges is far more lucrative for traders to jump to Bakkt.

      Bakkt Important Dates in 2019

      The first week performance of the platform was highly dismal. At opening there was absolutely no rush seen at the counter, in fact day one performance was highly disappointing with only 71 BTC traded on the platform. In a month, it only traded about 365 Bitcoins.

      Currently, it projects a healthy volume and an open interest of over $10 million. The highest daily trading volume recorded on the exchange was more than $44 million in November 2019.

      Bakkt Volume and Open Interest

      Moreover, the non-regulated derivatives exchange continues to provide futures exchange with a lot of leverage. Hence, for speculative purposes, as mentioned earlier, BitMEX, Okex, Huobi, FTX and even CME were better choices.

      Bakkt Brings Hope in 2020

      After the recent drop of nearly 50% due to the coronavirus outbreak, and the break below 200-Day Weekly moving average sounds alarms of bears in the market.

      Nevertheless, the pull-back above $5,600 almost instantly after the drop brought short-term relief in the markets.

      However, fundamentally, with the halving nearing in May, a price drop apparently creates a lot of pressure on the miners. Below the price @ $4,500, the miners are better off buying Bitcoin than spending on electricity. Moreover, this cost will effectively double after 12th May when the mining rewards are reduced by half.

      A financial update by Bakkt brought a silver lining to the clouds of existential crisis on Bitcoin. It announces a $300 million Series B fundraising round. Moreover, it also updates on its plans on increasing customer adoption of cryptocurrency payments for retail purchases on Starbuck via ‘bakkt cash.’ This will enable conversion of cryptocurrencies to bakkt cash which is likely to be added by other stores and firms as well, in the future. 

      Essentially, this is an indirect payment which involves custody of Bitcoin and cryptocurrencies. Nevertheless, it adds a lot of intrinsic value to these cryptocurrencies.

      Will the Bitcoin ETF Hype be Worth it?

      The speculative market in cryptocurrencies, especially Bitcoin has seen tremendous development in the last couple of years. Bakkt has had a significant influence on the development and the price of Bitcoin during these times.

      However, in terms of real impact, the platform is still in the early stages of making one. Next in line stands ETF approval by the SEC which has been pending for over 3 years now. The product will essentially allow addition of cryptocurrencies in mutual fund portfolios, insurance and pension funds and other financial assets. 

      In all probability, an approval will be highly bullish for Bitcoin and cryptocurrency markets. However, the price action around the launch of CME and Bakkt in the past will add considerable suspicion in the bulls around approval. 

      IBC-Transparent-Logo-(1)

      Subscribe To Our Newsletter

      Join our mailing list to receive Cryptocurrency investing and trading recommendations to your mailbox.

      You have Successfully Subscribed!

      Tags: bakktfeatured
      Share24Tweet6Share2

      Subscribe to get notified on latest posts.

      Unsubscribe

      Related Posts

      ATOM Set to Explode after the Revised Tokenomics

      ATOM Set to Explode after the Revised Tokenomics

      by Aniketh Paul
      October 14, 2022
      0

      ATOM 2.0 Tokenomics will change the future of Cosmos hub and its native token. In this article, We'll deep dive...

      Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

      Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

      by Karthik Guttha
      February 27, 2022
      0

      It has been one hell of a week. The global affairs surrounding Russia and Ukraine have escalated to unexpected levels,...

      What’s Ahead on the Cryptocurrency Rollercoaster?

      What’s Ahead on the Cryptocurrency Rollercoaster?

      by Guest Author
      January 11, 2022
      0

      Cryptocurrency came on fast and furious and surprised financial experts, governments, and users alike with massive fluctuations and outstanding climbs...

      Discussing Bull & Bear Cases in 2022 with On-Chain Analysis

      Discussing Bull & Bear Cases in 2022 with On-Chain Analysis

      by Karthik Guttha
      January 9, 2022
      0

      In our previous on-chain market analysis, we mainly discussed that bitcoin needs to reclaim the $53k level, which is the...

      Highlights from 2021: The Year of Crypto

      Highlights from 2021: The Year of Crypto

      by Karthik Guttha
      December 31, 2021
      0

      2021 will be remembered as a year when we defied the odds.  We lost hope in traditional financial systems that...

      Load More

      About Us

      We curate the best cryptocurrency projects with the intention of adding value for investors through the process of selecting, organizing, and looking after different projects available in the cryptocurrency market.

      • Trending
      • Comments
      • Latest
      featured image

      List of leading partners of Ripple, and How they use XRP?

      February 2, 2021
      Top 5 DeFi Projects on Tezos

      Top 5 DeFi Projects on Tezos

      December 26, 2022
      Top crypto coins for 2018

      Top 25 crypto coins to Buy in 2018 [UPDATED]

      October 4, 2018
      IoT Chain

      IoT Chain : The IOTA Killer

      September 20, 2018
      Highlights from 2021: The Year of Crypto

      Highlights from 2021: The Year of Crypto

      December 31, 2021
      Be warned! Hackers are abusing API keys and stealing your funds

      Be warned! Hackers are abusing API keys and stealing your funds

      June 15, 2021
      cryptocurrency

      Top 10 Cryptocurrency Projects from India

      May 18, 2021
      Polygon: The Swiss Army Knife of Web3

      Polygon: The Swiss Army Knife of Web3

      May 27, 2023
      Worldcoin: The Biggest Crypto Scam or Innovation?

      Worldcoin: The Biggest Crypto Scam or Innovation?

      May 18, 2023
      EIP-4844 Explained | The Biggest Ethereum Upgrade

      EIP-4844 Explained | The Biggest Ethereum Upgrade

      February 7, 2023
      What Blockchain Can Learn From Barnes & Noble and the Jacksonville Jaguars

      What Blockchain Can Learn From Barnes & Noble and the Jacksonville Jaguars

      January 17, 2023
      RINO Enterprise Wallet launches free Community Edition

      RINO Enterprise Wallet launches free Community Edition

      January 14, 2023
      Top 5 DeFi Projects on Tezos

      Top 5 DeFi Projects on Tezos

      December 26, 2022
      Modular Blockchains: The Next Big Thing in Web3

      Modular Blockchains: The Next Big Thing in Web3

      December 12, 2022
      • Top 10 Cheap Cryptocurrencies with Huge Potential in 2021 | Best Penny Crypto Coins

        Top 10 Cheap Cryptocurrencies with Huge Potential in 2021 | Best Penny Crypto Coins

        29635 shares
        Share 11843 Tweet 7402
      • A Mysterious Bitcoin Whale who sold 3000 Bitcoins at 58K$, Bought back 3521 Bitcoins in the last three days

        9933 shares
        Share 3972 Tweet 2483
      • Top 10 Low market cap altcoins to invest in 2021

        7269 shares
        Share 2906 Tweet 1816
      • Top 10 NFT Crypto Projects You Should Know

        7256 shares
        Share 2623 Tweet 1640
      • List of leading partners of Ripple, and How they use XRP?

        6150 shares
        Share 2460 Tweet 1537
      ItsBlockchain

      We are India’s first and oldest Blockchain & Cryptocurrency publication platform started in 2016. We are a one-stop destination for technical analysis, cryptocurrency recommendations, and Blockchain technology resources.

      Buying Guides

      • Buy Bitcoins in India
      • Buy Bitcoins in China
      • Buy bitcoins in Russia
      • Buy Bitcoins in Japan
      • Buy Bitcoins in Turkey

      Important Links

      • Home
      • About US
      • Privacy Policy
      • Promote Your ICO
      • Submit post

      Follow Us

      Contact us

      support@itsblockchain.com

      © 2020 itsblockchain.com - Designed and maintained by Fanatic Coders

      No Result
      View All Result
      • Bitcoin
      • Crypto Gems
      • NFT
      • DEFI
      • Crypto Lists
      • Altcoin
      • Crypto Market
      • Guide
      • IBC Capital

      © 2020 itsblockchain.com - Designed and maintained by Fanatic Coders

      Login to your account below

      Forgotten Password?

      Fill the forms bellow to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In
      This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.