Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
Bakkt’s Bitcoin Futures Already Open to Retail Investors, COO Says
Coindesk | Nikhilesh De | Sep 24, 2019
Well, that was a bit anticlimactic.
After two years of work and more than a year of hype and regulatory delays, the Bakkt bitcoin futures market had a lackluster first day of trading.
When the session closed at 22:00 UTC Monday, only two daily futures contracts and 71 monthly futures contracts had traded on the new platform, built by New York Stock Exchange parent company Intercontinental Exchange. The first daily contract didn’t even trade until 18 hours after the launch.
See: When the Tide Goes Out: Big Questions for Crypto in 2019
Still, Adam White, the former Coinbase executive turned Bakkt COO, seemed optimistic.
He said in an interview with CNN’s Julia Chatterly that the ICE futures contracts’ launch meant
“for the first time ever you have an end-to-end regulated marketplace for the price discovery of bitcoin.”
White hopes that the daily and monthly futures contracts will lead price discovery, and while most of the attention is focused on the (thus far unrealized) potential for institutional money to enter the space through Bakkt, White opened the door for retail investors to enter the market, saying:
“Bakkt is really designed for the institutional trader. So this is a futures contract. That said, we expect this futures contract to trade through retail brokerages as well, so retail customers can trade this contract.”
He also noted that ICE has been working on Bakkt and the futures contract “for over two years.” (The project was first made public during summer 2018.)
Demand may be slow to ramp up, however.
In comments of his own to CNBC’s Closing Bell, new Commodity Futures Trading Commission (CFTC) Chairman Heath Tarbert also addressed the cryptocurrency space, noting that while demand for crypto derivatives products is growing, “the demand is far below [what] we see for other commodity classes.”
Halvening
Bakkt first revealed it would offer traders a monthly contract in May, the same day it announced it had self-certified its contracts with the CFTC.
See: Waterloo-based Kik shuts down signature app, lays off staff amid cryptocurrency legal battle
White noted Monday that Bakkt’s monthly contract extends out 12 months, meaning traders will likely be able to predict where bitcoin’s price might be across a year.
“That’s important not just for speculators but the actual businesses relying on the price of bitcoin – the miners are the companies that mine bitcoin – want to hedge their risk so we think this contract is the perfect fit for them,” he explained.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
Want to get insider access to some of the most innovative advances happening in #fintech. Join us May 31, 2023 in Toronto for an in-person 7th Summer Kickoff Networking! |
Related Posts
Did the Russians just back the ruble to gold? Is Bitcoin next?
Exploring the Latest Trends in Fintech Mobile App Development
Fintech Fridays EP40: Why Bitcoin Exists and Education for the Masses
Coincub: Top 5 Countries with the Best Crypto Tax for Residents
Cambridge Centre for Alternative Finance Publishes Americas Report: Sector Grows by 26% as US Market Leads with 97% of Market Share
Fintech Fridays EP45: Mission-driven and Consumer-centric Financial Services
Leave a Reply