Bakkt: 'Bitcoin's Profile Creates a Liquid Product on Which to Build

Bakkt: 'Bitcoin's Profile Creates a Liquid Product on Which to Build-Bakkt says Bitcoin’s standing as a commodity, as effectively as its excessive purchaser demand, are the main causes for selecting to start its cryptocurrency futures buying and selling with Bitcoin. Meanwhile, the platform these days postponed the release of its BTC futures contract to January 2019.

BITCOIN IS KING

In a tweet printed on Wednesday (November 21, 2018), Bakkt offered solutions to why it selected to start with Bitcoin futures trading. According to the Intercontinental Exchange (ICE)-owned Bakkt, BTC’s standing as a commodity and its lion share of the complete cryptocurrency market makes it an noticeable choice.

We've been asked why we're starting with bitcoin. Here's why:

Bitcoin today accounts for over half of total crypto market capitalization and has been deemed to be a commodity, and its derivatives are regulated in the US by the CFTC… (1/2)
— Bakkt (@Bakkt) November 21, 2018

Earlier within the year, the SEC mentioned that cryptocurrencies like Bitcoin, which might be utilized in lieu of fiat currencies weren’t securities. Thus, BTC is a commodity, making its derivatives fall under the purview of the Commodity Futures Trading Commission (CFTC).

BTC also has the biggest market capitalization within the market. At present, the top-ranked cryptocurrency controls 53.1 percentage of the complete cryptocurrency market share. For Bakkt, this capacity enough sufficient liquidity with which to construct a tough futures contract.

BAKKT FUTURES TRADING POSTPONED

Despite the above-mentioned deserves of a BTC futures contract, Bakkt isn’t capable to release its product. In a statement launched in this week, ICE announced that it was pushing the release of the Bakkt BTC futures buying and selling to January 24, 2019. Bakkt was formerly scheduled to move stay in mid-December 2018.

A component to the announcement reads:

The new checklist timeframe will supply extra time for purchaser and clearing member onboarding previous to the leap of buying and selling and warehousing of the brand new contract.

In a separate statement, Kelly Loeffler, the Bakkt CEO mentioned the postponement was to offer the platform time to exercise routine all of the kinks in order to guarantee a seamless release process. The January 2019 release is nonetheless matter to regulatory approval.

NO 2018 SANTA CLAUS RALLY?

Before the onset of the recent fee crash that started final week, there was speak of an imminent ‘Santa Claus rally’. Technical alerts just like the Moving Average Convergence Divergence (MACD) and the Directional Movement Index (DMI) confirmed alerts of a BTC fee revival earlier than the stop of 2018.

However, the postponement casts a few doubt at the chance of any overdue bull run in 2018. As at press time, BTC fee $4567.06 -0.35% is nonetheless buying and selling under $4,500, 77 percentage down from its mid-December 2017 all-time high.

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