Editor's Note: This article comes fromChain reference (ID: lianneican), Author: Internal Reference Jun, reprinted by Odaily with authorization.
Editor's Note: This article comes from
Chain reference (ID: lianneican)
, Author: Internal Reference Jun, reprinted by Odaily with authorization.
In August 2019, Bakkt CEO Kelly Loeffler announced that Bakkt will be officially launched on September 23.
This year, Bakkt’s launch was full of twists and turns, delayed many times, and questioned by the regulatory authorities many times... However, Bakkt withstood the pressure and forged ahead, finally breaking through the cocoon and becoming a butterfly.
A small step for Bakkt today is a big step for the development of the encrypted economy.
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One year, a bumpy road
Looking back on the year of Bakkt, it can be said that the road has been bumpy and full of dangers. And it didn't suffer less setbacks because of its own halo.
In August 2018, ICE first announced the launch of a digital asset platform and claimed that it would launch Bakkt in November 2018, although the exact time has not yet been determined. Once the news was released, it immediately aroused extensive discussions in the market, and they all regarded it as a "big bull market switch".
However, this is not the case, and Bakkt has since embarked on a thorny road.
The first postponement, at the end of October 2018, ICE announced that its cryptocurrency trading platform Bakkt will officially launch physically-settled bitcoin futures on December 12.
The second postponement, on November 20, 2018, Bakkt announced on Twitter: "Given the market interest in Bakkt, and the work required to have all the parts in place, we are now targeting a launch date of January 24, 2019 to ensure Our participants were able to trade on day one."
At the time, Bakkt CEO Kelly Loeffler further explained the delay. “As is often the case with product launches, there are new processes, risks and mitigations that need to be tested repeatedly, and in the case of cryptocurrency, these resources are being applied to a new asset class,” she said. So it makes sense to adjust our timeline."
The third postponement, the first day of 2019, unfortunately Bakkt announced the postponement again. ICE posted a notice on its website explaining that the earlier mentioned Bakkt launch date of January 24 had to be revised in accordance with CFTC processes and timelines, adding that they will provide an updated release date in early 2019 surface.
The reason given this time is that the U.S. government is closed, and the CFTC responsible for the launch of Bakkt is no longer working, which led to the delay of Bakkt.
The reason for the real delay has long been forewarned by the market. In December 2018, due to the debate over whether to build a border wall, the White House in the United States began to close its doors for discussions. Together with the White House, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have also closed their doors, which has directly hindered the progress of products and services involving cryptocurrencies in the United States.
The fourth postponement, on February 6, the media Abacus Journal reported that according to informed sources (early investors of Bakkt), Bakkt will be approved for the listing of Bitcoin futures in March. launch this product. The insider also said, “All signs show that mid-March this year is the final approval period of the CFTC.” However, in March, according to media reports, it was still news that Bakkt was delayed.
In the past six months, Bakkt's road to launch has been bumpy. But it is not difficult to find that every delay is a struggle with the US regulatory authorities. During the year, Bakkt continued to negotiate with the CFTC. Through the efforts of Bakkt, the attitude of supervision is also quietly changing.
This is Bakkt's victory.
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One year, all the way
Bakkt's persistence and people's confidence in him come from the "trump card" ICE standing behind it and the support of a stronger "family and friends group".
Therefore, although Bakkt has not yet launched, this does not hinder its layout in various aspects such as financing, investment, improving its own business, and expanding the payment field, which paves the way for the next launch.
Perhaps in the eyes of Bakkt managers, it is only a matter of time before Bakkt goes online.
On December 31, 2018, Bakkt announced the completion of its first round of financing, raising a total of US$182.5 million from 12 investment partners including Microsoft’s venture capital arm and Naspers (Tencent’s largest shareholder, a South African media giant).
Then, on January 15, Bakkt announced that it would acquire the assets of Rosenthal Collins Group, a century-old futures brokerage company. It is understood that Rosenthal Collins' main business is managing commodity accounts for investors and institutions by moving funds through bank-owned clearinghouses, handling collateral and directing trades with minimal risk of default.
On January 24, the same day that the planned launch was delayed, Bakkt announced the details of its contract. Although this has the meaning of calming the market sentiment, it also shows that Bakkt's contract mechanism has been perfected.
On February 8, ICE held its fourth-quarter financial reporting meeting. When the meeting discussed the development of the Bakkt platform, Chief Financial Officer Scott Hill said that according to the operating rate in the first quarter of 2019, Bakkt will invest 20 million to 25 million US dollars. And said that Bakkt is a real investment, it is more about future revenue and market opportunities, ICE sees the future, not just the revenue in 2019.
On March 15, ICE officially announced the establishment of the "Cryptocurrency Database" and included 58 cryptocurrencies as data streams, including BTC, ETH, EOS, and HT. This move is ICE’s hope to improve the transparency of the market and lay the foundation for Bakkt by providing more encrypted currency data information. In April, another application was filed with the New York financial regulator. In order for Bakkt to go online smoothly, the "maiden's family" can be said to have broken their hearts.
On March 29, 2019, Kelly Loeffler, CEO of the Bakkt trading platform, revealed in a blog post that they are still seeking to cooperate with the US Commodity Futures Trading Commission to strive for its bitcoin derivatives to be listed on the Intercontinental Exchange. Trading and clearing will be carried out on its own platform, which will also be regulated by regulators, but it is still unable to provide a date for the launch of the business.
In mid-April, due to the delay in obtaining CFTC approval, ICE intends to bypass the CFTC and apply to the New York financial regulator for a BitLicense (digital currency license), and hopes that through the license, Bakkt can self-custody customers' tokens.
On April 29, Bakkt announced a series of new measures, including the acquisition of Digital Asset Custody Company (DACC). Bakkt revealed that it is planning to launch physically delivered bitcoin futures, and the contracts will be traded and cleared on ICE Futures US. This is an important step towards regulatory approval for its cryptocurrency offering.
DACC was acquired to continue developing a secure digital asset storage solution. Bakkt’s application to the New York Department of Financial Services to operate as a trust company would make the company a compliant digital asset custodian. This move may be the core element for Bakkt to finally go online.
On May 13, Bakkt announced that it was advancing plans for its physically-settled bitcoin futures product. Bakkt CEO Kelly Loeffler said in a blog, "We are working with the New York State Department of Financial Services to become a trust company and serve as a qualified custodian for CFTC-regulated digital asset futures products. This work continues and will Provide services for Bitcoin futures custody." At the same time, he also revealed that the user acceptance test (UAT) for futures and custody is expected to be launched in July.
Bakkt's official Twitter subsequently forwarded this article, saying, "Today, we are pleased to update you with the latest news about the Bitcoin futures contract developed by Bakkt in cooperation with ICE Futures (US) and ICE Clearing (US)." According to previous reports , the Bitcoin futures contract provided by Bakkt will adopt the method of physical delivery. Kelly Loeffler also said in his blog that he will start working with customers in the next few weeks.
On June 13, Bakkt COO Adam White, an encrypted asset trading platform hosted by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, posted a blog on Medium that the long-awaited Bakkt Bitcoin futures product will start on July 22. test.
“On July 22, two days after the 50th anniversary of the Apollo moon landing, Bakkt will launch user acceptance testing for Bitcoin futures, which will be listed on ICE Futures US,” White said in a blog post. traded and settled on ICE Clear US.”
Regarding the significance of the official launch test of the bitcoin futures product, White said: "This is not a small step. This launch will bring a new standard for entering the cryptocurrency market. Compared with other markets, due to market infrastructure and Institutional participation in the cryptocurrency industry remains limited due to constraints such as regulatory certainty. This results in lower trading volumes, liquidity, and price transparency in the industry than in more mature markets such as the Intercontinental Exchange Brent crude oil futures contract. Brent Crude oil futures contracts have earned global trust in setting global crude oil prices."
After three months of testing and obtaining all necessary licenses, Bitcoin futures for major institutional investors are finally here!
On August 16, Bakkt announced that it has obtained a New York State license (trust charter) through the New York State Department of Financial Services (NYDFS). This clears the way for the company to begin offering its much-anticipated physically-settled bitcoin futures contracts. The company plans to launch its product on September 23. The company plans to offer two types of contracts: daily contracts and monthly contracts. Both will be settled at Bakkt Warehouse.
From being postponed to being questioned, Bakkt finally defended the cloud and saw the moonlight.
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One year, go ahead
ICE, Microsoft, Starbucks, BCG, Naspers and other giants are able to jointly launch the encrypted digital trading platform Bakkt. It is to be optimistic about the future prospects of digital currency and assets. Whoever can become the "regular army" first will be invincible in the future.
On the Bakkt official website, we found Bakkt's self-introduction: Bakkt is committed to bringing trust and utility to digital assets. Bakkt is building an open and seamless global network that enables users to buy, sell, store and use digital assets simply, safely and efficiently. Backed by Intercontinental Exchange's mature financial market infrastructure and technology, Bakkt provides a secure global platform that connects investors, merchants and consumers, making it easier to acquire, trade and use digital assets. Faster and more economical. Bakkt's open-source neutral platform will meet applicable regulatory requirements and support innovation around digital assets and blockchain applications.
The upcoming launch of Bakkt will have a far-reaching impact on the currency circle and even the entire encryption field. Bakkt is undoubtedly the focus of the current encryption market. It has become the subject of mainstream discussion and is hoped for. It is also generally considered to be an important trend in an industry in 2019.
Cai Weide, a professor at Beijing University of Aeronautics and Astronautics and a special professor of the "Thousand Talents Program", said that the establishment of Bakkt actually represents that the entire American financial community has fully accepted the digital token market. And it is not just for a few people to have access to the financial token market, but for the entire United States to invest in digital tokens legally and compliantly, so the establishment of Bakkt is a historical milestone.
It is foreseeable that once Bakkt futures is launched, investors no longer need to worry about issues such as compliance and security, which is bound to attract more institutional investors into the digital currency market. When these traditional institutions or investors flock to the market with incremental funds, it may push the digital currency into a big bull market.
In fact, as early as when Bakkt announced its launch, heavyweights in the industry predicted that Bakkt would start a new round of bull market. Goldman Sachs partner and Galaxy Digital founder Mike Novogratz once said in the Financial Times that the launch of Bakkt will be a major driving factor in the cryptocurrency market, and to a certain extent, the price of Bitcoin will rise sharply.
Laomao also believes that the launch of Bakkt will bring about a super bull market for two reasons: First, Bakkt has a strong background and once approved for launch, it will attract a large amount of traditional financial capital to enter the market. Second, physically delivered bitcoin futures can not only curb short selling, but also gather more bitcoins on the trading platform, making bitcoins in short supply. These two will give Bitcoin a super bull market!
In addition, Bakkt uses physical BTC for settlement and delivery. In this way, market makers can effectively hedge risks on multiple platforms and introduce a large number of hedge funds. As more institutions enter the market, the supply of BTC will decrease significantly, which will directly affect the price trend of BTC.
The continuous involvement of funds. The intervention of capital will inevitably drive up the price of BTC. This kind of prediction is still valid, at least it will allow this year's bull market to continue.
At the same time, Bakkt is promoting the historical trend of large-scale expansion of the encrypted asset market. Reasonable valuation models for encrypted assets will continue to emerge, the price discovery mechanism will be more perfect, and the market effectiveness will be enhanced. Bakkt has the potential to drive institutional investors to continue to enter the market. The investment logic of institutional investors determines their strong demand for a reasonable valuation model of encrypted assets, which will greatly enrich the theoretical system of encrypted asset valuation, rather than being limited to the current one. Relatively single value store valuation model. At the same time, far-month futures trading can realize future asset price discovery to a certain extent, thereby improving the price discovery mechanism of encrypted assets and enhancing market effectiveness.
Bakkt's launch of physical settlement bitcoin futures contract products is of great significance, because they are actually building cryptocurrency infrastructure for the US market and paving the way for the commercialization of bitcoin. Therefore, Bakkt has a positive role in promoting the launch of BTC ETF.
It is reported that the last time the China Securities and Exchange Commission made a decision on the three BTC ETF listing proposals, the final voting result was two votes in favor and three votes against. We can also see a glimmer of hope from this.
As the market continues to evolve, it will also become increasingly difficult for the SEC to reject bitcoin ETF applications. Once the BTC ETF is finally approved, every retail investor can buy Bitcoin on the world's largest stock market through a 501(k) or other portfolio. The impact on the encryption field like that is absolutely unprecedented.
