Editor's Note: This article comes fromHoneycomb Finance News (ID: fengchao-caijing), Author: Huo Huo, Editor: Wen Dao, reprinted by Odaily with authorization.
Editor's Note: This article comes from
Honeycomb Finance News (ID: fengchao-caijing)
, Author: Huo Huo, Editor: Wen Dao, reprinted by Odaily with authorization.
In less than two weeks, Bakkt, the world's first compliant bitcoin futures exchange, will be officially launched. After nearly a year of "jumping", Bakkt, which has attracted much attention, finally has a "day of success".
On the hurdle of supervision, Bakkt is like a "child of someone else's family" and has become a positive example. Other "Bitcoin ETF" applicants who hoped to pass the checkpoint were "made things difficult".
In June of this year, SEC Chairman Jay Clayton reiterated the prerequisites for approving Bitcoin ETFs-custody plan and market manipulation countermeasures. "Custody is the main problem. How does the SEC really know that investors own digital assets?"
The "examiner" has already "disclosed the question". After Bakkt, whether Bitcoin ETFs can be accepted by regulation in the future has become the next market trend that most investors are concerned about.
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Bakkt's "three steps" to win trust and supervision
Bakkt focuses on the Bitcoin physical delivery model and supports daily settlement. Its main body of operation is the Intercontinental Exchange (ICE), which was established in 2000. It is backed by the capital endorsement of Goldman Sachs, Morgan Stanley and Deutsche Bank. It currently provides over-the-counter trading services for world-renowned energy, metals and other commodities.
Under the financial regulatory system of the United States, the compliance of cryptocurrency trading institutions is particularly important, and the qualification of asset custody is the main assessment indicator.
Bakkt, operated by ICE, has been approved by the U.S. Commodity Futures Trading Commission (CFTC) and the New York Department of Financial Services (NYFDS). In order to meet the latter's requirements for asset custody, in the early days, Bakkt established a custody institution - Bakkt Trust Company. On September 9, Bakkt also announced through official channels that it had purchased insurance services worth US$125 million for its Bitcoin custody business, providing another layer of protection for the custody business.
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Bakkt Official Twitter
In addition, the bitcoin physical delivery model also requires Bakkt to have a large number of bitcoins to meet customer demand.
Some institutions in the currency circle have long predicted that the launch of Bakkt will become a catalyst for the large-scale inflow of funds from traditional financial institutions into the currency market.
At the end of August, a survey report released by Insight Chain (INB) showed that among the 272 valid questionnaires collected, most investors regarded this as good news. 85.3% of them believed that the emergence of Bakkt Bitcoin physical delivery contracts represented the entry of institutional investors in batches; 81.3% of them believed that this would lead to a large amount of funds entering the currency circle; Bitcoin will rise.
Of course, from an objective point of view, participating in contract transactions does not mean that institutions will collectively bet on Bitcoin. After all, on this futures trading platform, customers can also short Bitcoin.
MultiVAC CEO Frank expressed a conservative view that the news of Bakkt's launch has been basically digested by the market, and it will not have much impact on the market in the short term.
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Bitcoin ETF Stuck in "Custody"
In the long run, the participation of traditional capital is undoubtedly a positive signal for the currency market.
Before Bakkt, including the Chicago Mercantile Exchange CME and the Chicago Board Options Exchange CBOE, have launched compliant bitcoin futures trading business.
Bitcoin ETF is a fund investment product similar to gold ETF. ETF allows investors to invest in Bitcoin without directly holding Bitcoin, and only needs to hold ETF funds.
The earliest applications for a Bitcoin ETF date back to 2014. At that time, the Winklevoss brothers, the founders of the Gemini exchange, initiated a joint application to the US Securities Regulatory Commission (SEC), but after three years of review, they were still not approved. Afterwards, many companies and trading service providers tried to apply for ETF compliance one after another. As a result, they were either rejected or postponed.
Cointelegraph has made a timetable of Bitcoin ETF being rejected many times in the past 4 years. This emerging financial product has never been able to enter the scope of regulatory approval.
