The last months of 2018 were punctuated with lots of anticipation as crypto enthusiasts held their breaths waiting for a Bitcoin ETF and the launch of Bakkt, a crypto futures trading platform that pledges to revolutionize the market. However, these hopes were dashed time and time again as the authorities delayed their decision-making, citing various impeding issues – one of which was said to be the crypto market’s vulnerability to price manipulation.
US Government Shutdown
By the end of 2018, Bakkt announced a reschedule for its launch slated for January 2019. According to the company, the delay was mainly caused by the struggles involved in drawing up a concrete legal and operational framework that sat well with the authorities. As such, Bakkt’s launch would have to wait for a while longer as issues of concern were smoothened out.
However, the possibility of the entity launching soon as expected has been squashed again as the US government deals with a nation-wide institutional shutdown. The shutdown means that US CFTC (Commodity Futures Trading Commission) will be unavailable to rule on the anticipated approval. This has prompted the firm to further postpone the launch of Bakkt. At the moment, the launch has been rescheduled to April 2019. The shutdown will also affect the approval of a Bitcoin ETF that SEC was set to rule on this February.
Customers Still Coming In
The existence of a platform like Bakkt would improve the market standing as well as the adoption of cryptocurrencies, and that’s something that smart investors realize. Despite the delays, the company is still recording impressive response from the investor community, with more of them coming on board. That’s according to Bakkt’s CEO, Kelly Loeffler.
Bakkt stands out from the crowd in that its futures contracts are settled in cryptocurrencies unlike those at other platforms like CBOE that are settled in fiat currencies.
April Is Still Good
So far, Bakkt has been a one-of-a-kind platform, and that means that even though there are delays, the platform will still be the first of its kind to enter the market. According to Hirander Misra, Bakkt is a rather ambitious project and the initially announced launch of 2018 may have been too optimistic given the many hurdles that had to be dealt with. Also, the April launch is still good for the project as it would still be the first platform to offer such futures contracts. Hirander is the CEO and Chairman of the London-based Global Markets Exchange Group International LLP.