After a long wait, the highly anticipated Bakkt physically settled Bitcoin (BTC) futures product is almost a reality, as the company announced today that they are cleared to launch their platform and product in the coming weeks.
This news has since spread like wildfire across the crypto industry and even led Bitcoin to spike nearly 4% from roughly $10,000 to highs of $10,450.
Bakkt to Launch Long-Awaited Bitcoin Futures Product in September
In a Medium post from today, Kelly Loefler, the CEO of Bakkt, she noted that the company’s “ambitious vision” of bringing institutional infrastructure to the crypto markets will finally be realized on September 23rd, which is just over one month away.
This news came about after the platform gained approval from all necessary regulatory entities, including the Commodities and Futures Trading Commission (CFTC) and the New York State Department of Financial Services, which have greenlighted the company to be a qualified custodian for the Bitcoin that backs the physically settled futures products.
“Regulated exchanges differ from trading platforms, such as crypto spot markets in many respects, including risk management, compliance and market surveillance,” Loeffler noted while emphasizing the benefits that a fully regulated platform brings to the crypto industry.
Importantly, Loeffler also explained that all the futures products will be covered by the ICE Clear US guaranty, which will ensure that all the products are protected by a hefty insurance fund.
“The Bakkt futures contracts will also be covered by the existing guaranty fund at ICE Clear US, which has an established risk waterfall across multiple commodities markets… Importantly, we’ve designed the Bakkt Warehouse to provide regulated, secure custody of bitcoin that is protected by $125 million in insurance,” she noted.
BTC Surges Amidst News Regarding Bakkt Launch
Immediately after news broke regarding the launch of Bakkt’s platform, Bitcoin’s price surged over 3% from lows of $10,000 to highs of over $10,400, before settling to its current price of $10,370.
Although it remains unclear as to whether or not this news will be enough to continue propelling BTC higher in the near-future, it is likely that this will bolster the upwards momentum that the crypto first incurred yesterday when it posted a strong recovery after dipping to lows of $9,500.
As the platform nears its official launch next month, it is highly probable that the hype surrounding its launch will reinvigorate the crypto markets and could provide a much needed boost investor’s sentiment.
Featured image from Shutterstock.
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