Facebook X (Twitter) LinkedIn Telegram
    • About
    • Advertise
    • Submit Press Release
    • Contact
    Facebook X (Twitter) LinkedIn Telegram
    BlockonomiBlockonomi
    • Prices
      • All Coins
      • Bitcoin Price
      • Ethereum Price
      • Ripple Price
      • EOS Price
      • Litecoin Price
      • Monero Price
      • Binance Coin Price
      • Bitcoin Cash Price
      • Chainlink Price
      • Cardano Price
      • Stellar Price
      • Tron Price
    • Sections
      • All
      • Analysis
      • Bitcoin
      • Ethereum
      • Education
      • Trading
      • Buying
      • DeFi
      • NFTs
      • Metaverse
      • Exchanges
      • Brokers
      • Guides
      • Gaming
      • Privacy
      • Business
      • Finance
      • Fintech
      • Regulation
      • Security
    • Claim Free Crypto!
    • Gamble With Crypto!
    • Easily Buy Crypto!
    Home / About / Advertise / Submit Press Release
    BlockonomiBlockonomi
    News

    Bloomberg: CFTC is Hesitant to Approve Bakkt’s Bitcoin Futures

    Nick ChongBy Nick ChongApril 19, 20191 Comment4 Mins Read
    Telegram Twitter LinkedIn WhatsApp Facebook Email
    Bakkt
    Share
    Facebook Twitter LinkedIn Email Telegram WhatsApp

    Since Bakkt, a cryptocurrency initiative backed by the Intercontinental Exchange (ICE) — the New York Stock Exchange’s parent company — was announced, it has been widely anticipated. In fact, pundits across the board have claimed that the startup, intended to be the first platform to offer physically-secured Bitcoin (BTC) futures, will be what boosts the cryptocurrency market out of its doldrums.

    As CNBC analyst and industry investor Brian Kelly remarked: Bakkt is the “biggest (crypto) news of 2018.”

    But, a recent report claims that Bakkt has fallen on hard times, as regulators aren’t exactly too pleased with what they’re seeing.

    Bakkt

    Bitcoin Futures Exchange Bakkt Still In Search Of Green Light

    Table of Contents

    • Bitcoin Futures Exchange Bakkt Still In Search Of Green Light
    • Why Bakkt Is So Important

    Bloomberg, citing those familiar with Bakkt’s operations, recently remarked that the U.S. Commodity Futures Trading Commission (CFTC) isn’t all too excited with Bakkt’s proposal. This isn’t exactly hearsay. When ICE and its partners announced Bakkt in Q3 of last year, they issued a tentative November/December 2018 launch date for Bakkt’s Bitcoin futures contract.

    As you all know, the semi-deadline came to pass and Bakkt failed to launch, and another delay, this time to January 2019, was instated. This deadline, too, didn’t hold its water. And now, the expected date of Bakkt’s inaugural trading session is unknown.

    Although Kelly Loeffler, the chief executive of the exchange, didn’t explicitly pin his firm’s sluggish nature to the CFTC, she and sources have mentioned that the firm is still working with the financial regulator. This, of course, implies that there are concerns over the details of Bakkt’s futures and offerings.

    Bloomberg’s insiders would confirm this conjecture. The people familiar told the outlet that the CFTC is primarily concerned with how the cryptocurrencies of Bakkt’s clients would be held in the vehicle of the proposed physical futures, as BTC needs to be stored to back the contracts.

    It isn’t clear why the CFTC is taking issue with Bakkt’s custodial design, as it does have big-name backers in ICE itself, industry fund and merchant bank Galaxy Digital, Microsoft’s venture capital arm, and other prominent tech, finance, and blockchain names.

    There is a possibility that the exchange hacks, like the very recent DragonEx, Bithumb, and Cryptopia cases, is irking the governmental entity, as Bloomberg’s sources did mention how the Bitcoin stored would be safeguarded “from possible theft and manipulation.”

    However, Bakkt, likely now under a time crunch (the firm’s financiers are reported to have access to a “get-out” clause to withdraw their investment), is purportedly attempting to somewhat skirt these concerns.

    It was claimed that instead of a green light from the CFTC, Bakkt is looking for a stamp of approval from New York’s regulators, which have historically been stringent but cautiously amicable towards Bitcoin-related ventures. This would allow Bakkt to secure BTC and other digital assets for its clients, while potentially setting the stage for a fully-fledged “go-ahead” from the CFTC.

    Why Bakkt Is So Important

    All this begs the question: why exactly is Bakkt so important? Well, as explained by the Ironwood Research Group’s Mike Strutton in a Youtube post published last year:

     “With Bitcoin futures coming from Bakkt, they are physically backed, meaning that Bitcoin is going to be purchased and removed from the market and warehoused in their platform for the duration of those contracts. And they are doing these (contracts) in one-day transactions and they are not doing any leverage or margin trading on them.”

    For those who aren’t catching onto Strutton’s train of thought, if Bakkt’s futures gain traction in a retail and institutional setting, thousands, if not tens of thousands BTC will begin to leave the open market en-masse. This is something deemed bullish by analysts across the board, simply because of simple supply-and-demand mechanics.

    Advertise Here
    Nick Chong
    • Website
    • X (Twitter)
    • LinkedIn

    I am a writer who has been following the cryptocurrency space since 2013. My insights and interviews have been featured in leading publications in the industry such as LongHash, NewsBTC, and Decrypt. When I am not writing, I work as a team member of the EXODUS division of HTC, a Taiwanese electronics company. I own a small amount of Bitcoin. Contact NickC@blockonomi.com

    Related Posts

    EOS Network – An Enterprise-Grade Blockchain Operating System

    November 29, 2023

    Former OneCoin Compliance Chief Pleads Guilty to Fraud and Money Laundering

    November 10, 2023

    After The SBF Verdict, Where Does the Crypto Market Go Next?

    November 4, 2023

    1 Comment

    1. Thomas G Thompson on April 22, 2019 1:51 pm

      “Futures markets” are not regulated forward markets. One of the beauties of well-functioning futures markets is that you can get all the financial benefits without having to own the commodity or instrument underlying the futures contract. The vast majority of gold, wheat, FX, oil and Treasury futures, to name a few, are offset before delivery – that is, if I have sold a futures contract for June 15, 2019 delivery, I simply buy one in the futures market before June 15 and the clearing process makes me flat. For all of the deliverable contracts named above, margin to underpin the financial obligations is normally paid in U.S. dollars or U.S. dollar instruments. Bakkt might be proposing something novel but they haven’t disclosed that. Deliverable futures contracts do not remove product from the market except briefly – for the length of time of the delivery process for the contract.

    Coinbase Earn
    Advertise Here
    Gambling
    • mBit Casino
      VisitReview
    • BC Game
      VisitReview
    • Duelbits
      VisitReview
    • BitcoinCasino
      VisitReview
    • FortuneJack
      VisitReview
    • 1xBit
      VisitReview
    Exchanges
    • KuCoin
      VisitReview
    • Coinbase
      VisitReview
    • Binance
      VisitReview
    • PrimeXBT
      VisitReview
    Koinly
    Advertise Here
    Trading Bots
    • 3Commas
      VisitReview
    • Cryptohopper
      VisitReview
    • CoinRule
      VisitReview
    3commas Trading Bot
    Advertise Here
    All content on Blockonomi.com is provided solely for informational purposes, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, product, service or investment. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate.
    Blockonomi™ Copyright © 2017 - 2023 Kooc Media Ltd. All rights reserved. Registered Company No.05695741
    Network: Moneycheck - Finance News / Beanstalk - NFT & Metaverse News
    • About
    • Contact
    • Deals
    • Advertise
    • Privacy Policy
    • Terms & Conditions

    Type above and press Enter to search. Press Esc to cancel.