Bitcoin quant expert Plan B tweeted that there are only 7 business days left until ICE will be able to offer physically-settled Bitcoin futures. This is good news for Bakkt investors, as there have been many doubts if the project was ever going to come to completion due to a series of prolonged delays.
PlanB’s tweet read:
“7 business days until … Intercontinental Exchange (ICE) is offering physically settled Bitcoin futures through its Bakkt unit. It will act as exchange, clearinghouse and settlement authority. ICE BTC futures will create price discovery apart from any cash market influence.”
The Bakkt launch for Bitcoin has been regarded by the community to be one of the biggest bullish indicators imaginable. One trader at TexasWest Capital was quoted to have said that Bakkt’s launch is “arguably the most bullish event for institutional investors in the history of bitcoin.”
This is probably because the product will enable institutional investors from all industries to gain access to a new market. The platform is also supported by the New York Stock Exchange, which would increase investor trust in the Bitcoin market.
Bakkt’s futures contracts are different from the Bitcoin futures offered by CBOE or CME, as they are physically-settled. This implies that investors will have to produce or receive actual BTC rather than their fiat equivalent.
But in spite of the good news and positive outlook of the community, the markets have not seen any major movements in reaction to the launch. Last month when Bakkt received regulatory approval to launch, it was expected that the prices would surge upwards, but the prices barely budged.
In fact, the Bakkt launch may not be the catalyst for the biggest bull run that everyone was expecting.
The Bakkt launch has come at a good time, especially since the market has been going through a bearish period, but there is no certainty that it will drive up the Bitcoin price to new heights.
Featured image: NewsBTC
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