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Bakkt, the bitcoin trading platform of the Intercontinental Exchange (ICE), said that the position of Bitcoin as a commodity and its customer demand is the main reason why Bakkt chose to use Bitcoin as its first cryptocurrency futures product. At the same time, the platform recently delayed the launch of the Bitcoin futures contract to January 2019.
source: pinkblockchain
Bitcoin is king
In the tweet released on Wednesday (November 21, 2018), Bakkt gave an answer as to why it chose to start with Bitcoin futures trading. Bakkt, a subsidiary of the Intercontinental Exchange (ICE), said BTC's position as a commodity and its largest share of the cryptocurrency market made it an obvious choice.
Someone asked us why we started with bitcoin. The reason is that Bitcoin accounts for more than half of the total market value of the encryption market and is considered a commodity. Bitcoin derivatives are regulated by the Commodity Futures Trading Commission (CFTC) in the United States.
Earlier this year, the Securities and Exchange Commission (SEC) said that bitcoin and other cryptocurrencies used to replace fiat money were not securities. Therefore, Bitcoin (BTC) is a commodity whose derivatives fall under the jurisdiction of the US Commodity Futures Trading Commission (CFTC).
BTC is also the largest cryptocurrency in the market. At present, the market value of Bitcoin accounts for 53.1% of the total market share of cryptocurrency. For Bakkt, this means having enough liquidity to build futures contracts.
Bakkt futures trading delayed
Despite the above advantages of the BTC futures contract, Bakkt is not ready to launch its products. In a statement issued this week, Intercontinental Exchange announced that it will postpone the Bakkt BTC futures trading period until January 24, 2019. Bakkt was originally scheduled to go live in mid-December 2018.
Part of the announcement is that the new time-to-market schedule will provide additional time for customers and clearing members to enter before the new contract begins trading and before entering the warehouse.
In another statement, Bakkt CEO Kelly Loeffler said the postponement was postponed to give the platform time to resolve all issues to ensure a seamless transition. The online launch in January 2019 is still subject to regulatory approval.
Bitcoin will be difficult to rise in 2018?
Before the price collapse that began last week began, there were rumors that Bitcoin was about to rebound. Technical indicators such as the MACD and Directional Movement Index (DMI) show that bitcoin prices are showing signs of recovery before the end of 2018.
However, the delay in the launch of Bakkt has raised some doubts about the possibility of a bull market in late 2018. As of the original author of this article, Bitcoin prices are still below $4,700, down 77% from the all-time high in mid-December 2017.
Original: https: //bitcoinist.com/bakkt-chose-bitcoin-btc-futures/
Author: OSATO AVAN-NOMAYO
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