Re: Bakkt launching on Dec12, is it will start a bull run?
Nope.
It makes future bull runs potentially stronger as that infrastructure is there waiting to be stampeded into. It will not initiate any type of stampede. Same goes for any ETF should it ever arrive. It won't create demand. It'll facilitate more of it when the demand arrives from other factors.
It makes future bull runs potentially stronger as that infrastructure is there waiting to be stampeded into. It will not initiate any type of stampede. Same goes for any ETF should it ever arrive. It won't create demand. It'll facilitate more of it when the demand arrives from other factors.
I'm glad there's someone sensible in the room. If I see another person exclaim "Bakkt is the catalyst for the next bull run" I think I'll throw up. No investors out there are "waiting for Bakkt to launch" before getting exposure to BTC. That's completely nonsensical.
These futures are physically delivered and not leveraged. Which is entirely different than the futures from last December. Here they will actually be receiving Bitcoins, instead of just making bets on the price. Also futures is just the first product, I'm sure it won't take too long for them to introduce actual Bitcoin trading on BAKKT.
Perhaps not leveraged with margin, but they are highly unlikely to be fully collateralized since they don't have to be. Take a look at the paper gold market for inspiration. Most "physically settled" gold contracts are never delivered.
What makes you think they'll offer spot trading? The ICE mostly offers futures and options markets. Even their "physical" markets are all still contracts that settle based on an index of spot, forward, and derivative market prices.
Why do you think Wall St investors aren't waiting for a regulated exchange before getting into Bitcoin. How is that nonsensical? That is probably what a lot of them are waiting for. Wall St mostly has no interest in throwing their money into these crypto exchanges that get hacked every few months. They require a much safer environment, and they are really only interested in operating in their own environment - operating with other institutions on Wall St. That is what BAKKT is. I find it bizarre that anyone would think BAKKT isn't a huge deal. I don't expect an immediate crazy price run because even when BAKKT launches I think it'll take time for many Wall St players to start buying in, but December 12th is the start of the flood. All the money that has ever been put into Bitcoin so far will be laughable once Wall St has regulated Bitcoin exchanges and ETFs and whatnot to make money from.
Maybe they won't offer spot trading, I dunno, I read that they will be offering more and more services, and with the way BAKKT is talking about wanting to spread the investment and usage of Bitcoin to everyone I can only assume they will open up spot trading eventually. Regardless, other Wall St institutions will (we already know Fidelity and Goldman Sachs are creating their own Bitcoin services, no doubt many more will in the next 12 - 24 months). The point of physically settled bitcoin futures on BAKKT is that BAKKT has to actually hold all the Bitcoin. They have to buy up the supply for whatever volume they have. As supply goes down in the broader market demand gets pinched and price goes up, simple market economics.