Bear Market Might Continue Following Bakkt Launch
The regulated ecosystem of Intercontinental Exchanges for Bakkt should launch on the 12th December but concerns are still in the air according to the latest industry figures earlier in the week.
Following a series of tweets, the securities lawyer and a common tweeter on social media, Jake Chervinsky explained the holes in public knowledge regarding Bakkt which is currently awaiting regulatory permission to begin operations.
“In the minds of many, Bakkt’s launch has become a full-fledged narrative for when & how the bear market will end. Hype aside, some people have lingering concerns about Bakkt.”
If all goes accordingly, the company will launch one-day physical Bitcoin futures on December 12th.
As reported in the past by multiple news outlets, this will allow institutional investors to take physical ownership of cryptocurrency, setting the offering aside from current futures available on the market, including pioneers Cboe and CME Group.
Executives at Bakkt have used this story to prevent worries regarding the platform having a ‘detrimental’ long-term effect on Bitcoin. Experts may say that they haven’t gone through it enough in their explanation.
As said by Bitcoinist:
“Highlighting the lack of a complete picture, Chervinsky quotes ex-Morgan Stanley senior executive Caitlin Long, who in October relayed her concerns on social media. These specifically revolve around rehypothecation, the practice of financial institutions using deposited client collateral to their own ends.”
Officials from Bakkt followed up by solidifying their transparent approach to their offering in what was essentially a new big to calm the doubts surrounding the industry.
Following the futures, the American Lawyer mentioned that in the next phase of the expansion of the platform, there could be some significant changes.
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