In December 2017, the bitcoin price reached $ 20,000, and the month-long contracts reached the ecosystem. Until 2018, Baktank was expected to launch a centralized and regulated Bitcoin market to offer the first futures placed on BTC.
The centralized and regulated platform is not a common commodity for cryptocurrency exchanges, so we explain the main features of the CCTV, which will start operating in this CriptoNoticias in 2019.
Bakkt, Bitcoin supported market
Bakt, announced in August of this year, is a centralized platform that wants to place key crypto assets on the Wall Street stock market infrastructure. According to its founders, it was born after five years of planning. Bakkt will work as a bitcoin exchange system but is protected by US Securities laws.
Intent to "bring new products to existing product infrastructure" to attract traditional investors to the crypto market. Therefore, Bakkt will have the same functionality as the stock market, with the United States Commodity Trading Commissions (CFCT) and the Commission offering the compensation and custody package to be monitored taking into account the parameters. Stock and Securities (SEC).
The first compensation package, which is related to the password, to ensure that the encrypted money reaches the buyer or fails, a contract that loses contracts. In addition, Bakkt will purchase bitcoins and their future contracts through a broker that has the necessary expertise to comply with the Know-Your-Customer (KYC) rules, as part of the observed storage service.
Bakkt uses a regulated, timely tested futures market infrastructure that enables Bitcoin to deliver and physically deliver to global markets.
On the other hand, Bakkt plans to pay attention to the storage of purchased crypto-assets and storage of special keys. This feature can be attractive to traditional investors who are accustomed to keeping their assets. However, this Bact proposal is incompatible with one of the major practices encouraged by the bitcoiner community: whether it is your own bank, is responsible for the funding.
It should be borne in mind that the QCC policy requires that users' identity verification be forwarded to regulatory authorities by the customer's specific information. This is considered a violation of privacy for some bitcoiners. However, Bakkt's executive director, Kelly Loeffler, opens the platform's security so that some of the buttons will be offline.
Special assignments will be stored in a vault, covering "high level physical, technological and information security", including biometric scanning, fragmentation, and multiple signatures, according to Loeffler.
The striking suggestion for traditional investors is not only to work within the regulatory framework they are accustomed to participating, Bakt is going to be the first company to cancel the future contract with bitcoins live. That is why they say that contracts must be protected.
Despite the fact that this kind of exchange is meant to be exchanged, it first proposes to offer future Bitcoin contracts. Unlike CME and Cboe, this first product will end in one day. In addition, according to his web platform, Bakt Bitcoin (US Dollar) will be issued by 1 BTC in exchange for US dollars. Parity 1: 1, a contract, a bitcoin is set up. This amount may seem high for the microinverters of the crypto-economy, but as their proposal, Future contracts with Bakkt are targeted at institutional investors.
Since Bakkt is a subsidiary of the International Stock Exchange, the acquisition and offering of Bakkt Bitcoin will be made through the ICE Futures. In addition, according to Loeffer, these contracts will be pre-funded, an experience to eliminate the risk of contract breach.
Taking into account other futures contracts and the bull market observing the recent crisis in the crypto market, how will the future of Bakhty be affected by the market?
According to some analysts, the termination of future contracts with the physical endorsement of bitcoins can be beneficial to the ecosystem. This can lead to transparent, regulated and secure trading and storage, corporate demand and liquidity, which can reduce the volatility of cryptoactive substances.
The sale of futures contracts requires the approval of the United States Commodity Exchange Trade Commission, ie the CFCT's appointment as a contract market. However, Bakt can confirm its future product without immediate approval from the regulator, according to a legitimate expert Jake Chervinsky, a rule, falls under the exception.
Start selling Bitcoin's future Bakkt should only submit documents. So far, there is no history to publish the details of the future contract of Bakht, but contract markets can submit self-certification documents up to one business day without listing in their brokerage house.
Bakkt is a trading platform for Futures ICE Futures US exchange, formerly known as the New York Trade Council. ICE Futures is one of six clearing houses run by the American International Exchange (ICE) since 2000, when Jeffrey Sprecher was founded.
The ICE Futures, the Chicago Commodity Exchange, is now the second-largest owner of financial exchanges through revenue, behind the company that offers bitcoin futures last year. In addition, the ICE NYSE is owned by the American, New York Stock Exchange and the world's leading futures market, Arca. Therefore, ICE and its subsidiaries have a structure approved by the United States regulators to manage their financial markets and plan to exploit them.
Despite a certain autonomy used by ICE, Bakkt will never see the CFCT's resolution because the Futures Trade Commission still has power over certified financial products. However, it was a measure taken earlier by CME and Cboe, so a similar scenario for Bakt Bitcoin is expected.
Long term bet
Competing with companies like Coinbase, Grayscale, Ledger, Gemini and BitGo for offering institutional crypto-investment is not a long-term objective of Bakt, since it is designed to support Wall Street investors. business payments. In his interview with Loeffer Fortune, this Bakt is responsible for the business development in two stages.
First, it depends on the termination of future contracts of Bitcoin. From the second stage so far, there is no information available yet, but Bakht's co-founders talked about the intention to promote change in shopping centers and online payments. "We are collaborating to create an open platform that will help us to create the potential for transformation of digital assets in world markets and trade."
It should be noted that Bakkt cooperates primarily with Microsoft, which is a leader in e-commerce services with Azure services; Starbucks encourages its cafe giant customers to pay with their phone payment services instead of credit cards and the Boston Consulting Group, a strategic consulting firm.
On January 24, 2019, Bakt will begin the future of Bitcoin. This date was postponed by financial managers after postponement of the commercialization of future announced December 12.
In addition to the new start date, Loeffer announced in November adds futures related to other currenciesbut first of all they believe in the evolution of the market and the views of their customers.
Futures markets, especially Bakht, have created many expectations for the year. However, there are those who say that these expectations should not be ignored. On the other hand, a Diar survey estimated that traditional investors prefer most markets to exchange homes.
A month after the start of the futures, there are many questions.
Will these futures change anything that is dissolved in bitcoins? Will BTC Influence Affected?
Selected drawings Ziquiu / stock.adobe.com