A proposed Bitcoin Futures contract by a crypto startup, Bakkt, has been postponed once again according to a notice by the Intercontinental Exchange (ICE), where the offering is expected to be rolled out. Sadly, this is the third postponement since the futures contract was first announced.
What is Bakkt Bitcoin Futures Contract?
It is a new service or offering proposed by crypto startup Bakkt. The process will allow customers to buy Bitcoin and have it delivered the next day. Bakkt will keep custody of the asset while traders will buy the contract from the Intercontinental Exchange(ICE)
Why Postpone The Launch?
According to the notice and a medium post by Bakkt, there are three significant reasons why the launch has been shifted from the earlier dates of Nov 12 and December 12 to January 24, 2019 (still subject to regulatory approval).
The first reason is that the new “timeframe will provide additional time for the customer and clearing member onboarding prior to the start of trading and warehousing of the new contract.” As further explained by the startup, such measure will allow traders to begin using the contract from Day 1.
A second reason is that the Commodity Futures Trading Commission (CFTC) is conducting a “thorough review” of the Bakkt Futures contract as well as the Bakkt warehouse which will be used for the digital asset clearing service.
It is clear that a CFTC seal would be needed on the Bakkt contract if it will live up to its potential.
Having this regulatory approval will make it easier for institutional investors who are the primary targets of the Bitcoin Futures to buy into the offering once it goes live.
Bakkt also said it is launching “insurance for bitcoin in cold storage” and is also in the process of securing “insurance for the warm wallet within the Bakkt Warehouse architecture.” Even though Bitcoin Futures will be the first, the startup hopes to consider and trade other cryptos in the future.
Better Late Than Never - Bakkt Bitcoin Futures
While the latest postponement has been greeted with mixed feelings by the global crypto community, there is still some aura of hope locked within the news. With Bakkt’s futures launch nearly less than two months ahead, there is a reason to believe that the crypto market will live beyond the current bears' movement.
Institutional involvement has always been held as the missing piece for bitcoin fulfilling its potential and each passing day brings the market closer to that reality. Therefore, with Bakkts Bitcoin Futures, it is a case of better late than never.