If some traders do not have specific expectations, others strongly believe that the launch of the Bitcoin futures will mark a milestone for the cryptographic sector. But what exactly is it Bakkt? What are the main advantages for investors? Let's find out in this guide.
Bakkt: what is it?
Bakkt is a IFUS platform (ICE Futures US Group), owned by theIntercontinental Exchange (ICE). Among the other holdings of this corporate group, there is also the renowned and famous New York Stock Exchange.
Bakkt's ambitious goal is to make Bitcoin futures available in the United States. Traders hold nothing physically: the Bitcoin is a virtual currency very different from fiat currencies.
This means that each investor receives the corresponding amount or value of the BTC.
The launch of Bakkt will bring some stability to the price of Bitcoin, and, consequently, also to other cryptocurrencies (the prices of most of the Altcoins are correlated to the price of Bitcoin). To buy cryptocurrencies you need to use a Exchange.
Bakkt: details and features
Let's analyze the Bakkt platform closely: it applies certain cloud technologies created by Microsoft. The goal is to use this technology to build a "open" ecosystem, but regulated for cryptocurrencies.
In this ecosystem, both individuals and large institutional investors will be able to store, buy and sell digital assets.
As mentioned above, the most interesting feature of Bakkt is the fact that it will make available Bitcoin futures contracts.
Based on these contracts, the owner / buyer will be entitled to receive digital assets on a contractually defined date.
If you buy Futures and earn money after the contract expires, you can get the value equivalent in the fiat currency.
However, it can also result in significant profit losses due to extremely volatile exchange rates.
Behind Bakkt there is an audience of reliable sponsors and of great reputation: Microsoft, Starbucks and Boston Consulting Group (BCG). The sponsors are sharing their skills and professionalism to make the project better.
What you need to know about Bakkt
Bakkt will offer two main types of contracts that can be negotiated: the daily futures contract and monthly futures contract.
I monthly futures they are a type of contract that will be terminated once a month (every third Friday of the month).
The authority responsible for regulating BTC Futures is the Commodity Futures Trading Commission (CFTC) of the United States.
The entity that will deliver the Bitcoins earned through futures contracts is the Bakkt Warehouse, which is still awaiting approval from the New York State Department of Financial Services.