Bakkt Futures Trading Launch Can Be Very Bullish For BTC: Analysis

A lot of best cryptocurrency news sites have recently reported about the launch of the Bakkt futures trading platform and how it can be very bullish for the fate of Bitcoin as the most dominant cryptocurrency.

As of recently, the crypto community rejoiced while the ICE-operated company announced the official launch date of September 23. Approximately 48 hours after the big reveal, the price of Bitcoin surged by 10%.

Investors right now know that the Bakkt futures trading launch is bullish for the long-term health of Bitcoin. Still, there are only a few who understand the reasons why. There are basically three big reasons why this launch could (and probably will) be bullish for the price of Bitcoin, the latest cryptocurrency news show. They include the following…

• Bakkt’s futures contracts will be physically settled (and not cash settled)

As you may know, futures contracts are settled in cash, which means that once they expire, market participants pay or receive the difference between their prices. Cash settled futures contracts have little to no influence on the demand of Bitcoin – and the Bakkt futures trading platform launch will offer futures contracts where buyers can expect physical deliveries of Bitcoin.

bakkt has to buy btc for physical underlying of their futures > less btc on free market > higher prices for btc

— ⚠️ A VALID PROVISIONING PROFILE WAS NOT FOUND ⚠️ (@_Cryptosopher_) August 17, 2019

• Bakkt provides a regulated and compliant system to buy Bitcoin

Regulation has been a hot topic in the Bitcoin and altcoin news. For now, it is important to mention that the Bakkt futures trading launch comes with a platform where institutional investors can use part of the assets managed to buy Bitcoin.

This is because the ICE-operated firm has received an approval from the Commodity Futures Trading Commission (CFTC) and the New York Department of Financial Services (NYFDS) – that all investments made through it are legal and tax compliant.

Q: Why is @Bakkt important for adoption of bitcoin?

A: It offers a way for large, risk-averse institutions to buy and custody bitcoin through an end-to-end regulated system approved by the CFTC and NYDFS, and backed by the sterling reputation of ICE. Compliance lawyers rejoice!

— Jake Chervinsky (@jchervinsky) August 16, 2019

• Bakkt will facilitate retail BTC payments

Last but not the least are Bitcoin payments. The Bakkt futures trading launch will apparently boost the demand for retail Bitcoin payments. With the system, even the ones who are not crypto savvy can easily purchase BTC and use it as an efficient payment solution.

The bottom line is that Bakkt provides a new type of working – and a platform for institutional investors to buy physical BTC through a system that is legally compliant.