Bakkt Gains Favor Ahead Of Launch As Bitcoin Users Say Hype Justified
Cryptocurrency figures are putting renewed faith in Bakkt to lift markets after the company announced it was ready to launch Bitcoin storage.
Bakkt: Bitcoin Storage Starts Next Week
Bakkt, a cryptocurrency ecosystem for institutional investors, is currently testing its first product, physical Bitcoin futures. The main launch will begin next month.
As of September 6, the company confirmed on social media this week, clients will be able to deposit their coins.
“On Sept 6, our Warehouse will begin offering secure storage of customer bitcoin to prepare for the launch of Bakkt Bitcoin Daily & Monthly Futures when they launch on Sept 23,” officials wrote on Twitter.
These contracts will enable physical delivery of bitcoin with end-to-end regulated markets and custody.
As Bitcoinist reported, Bakkt has seen multiple delays due to regulatory hurdles. This month, it said it had resolved those difficulties, and could now move forward with its futures plans unhindered.
Bakkt will offer physical futures contracts, meaning that the platform will pay out investor returns in Bitcoin, and not fiat currency such as US dollars.
This feature made the offering appealing to BTC proponents, who argued masse institutional exposure to the cryptocurrency would push up demand and, therefore, its price.
While others were wary of Bakkt, and argued the hype around its release was exaggerated, the impending launch saw several sources come out in support.
Among them was Hodlonaut, the Twitter user famous for organizing the Lightning Network showcase Lightning Torch earlier this year.
“Just checked. Bitcoin is still working. Just cheaper sats, and a little less time until Bakkt launch and halving,” he tweeted on Wednesday about current Bitcoin price behavior.
Traders Wait For Institutional Miracle
Rhythm, another well-known social media personality, was even more emphatic, arguing the excitement around Bakkt was justified.
“Remember, the hype is bakkt with substance. Unlike other futures exchanges, this is settled in bitcoin. Actual bitcoin is paid out, not just the fiat equivalent to the price of bitcoin,” the account wrote.
“The result is better price discovery and liquidity for bitcoin and everyone in the space.”
Bakkt will vie with various competitors on the physical futures market, including exchange Binance and derivatives platform LedgerX.
Hopes institutions will push up Bitcoin meanwhile pervade professional circles too, with Galaxy Digital founder Mike Novogratz telling mainstream media their impact would be gradual but significant.
“The institutions that are making longer-term decisions are making sure they’ve got custody, making sure their ducks are lined up – and they’re slowly and steadily moving in,” he said in an interview with Bloomberg on Wednesday.
What do you think about Bakkt’s impact on Bitcoin price? Let us know in the comments below!
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