Bitcoin Price: Will Bakkt’s Launch This Month Take BTC to New Highs?
With Bitcoin price trading flat under $10K, the launch of the highly-anticipated Bakkt platform for institutional investors is now just three weeks away.
Is this time different or will the market reaction to this latest institutional product launch echo that of the CBOE futures launch in December 2017 — which resulted in Bitcoin (BTC) price dropping 85% over the following twelve months.
Institutional investors to trade actual Bitcoin on Bakkt
A key difference between the CBOE and CME future products and Bakkt’s, is that the futures contract through Bakkt is settled in Bitcoin, not cash. This will be significant, as it means that clients who trade that product will receive actual Bitcoin in their accounts upon settlement, instead of dollars.
The continued development of institutional grade products for both trading and custodianship should be perceived as bullish for the asset class, as it allows for greater access to these markets for investors, as well as increasing general liquidity.