Bakkt gearing up for the 23rd of september, the day on which an institutional investor with a real bitcoin futures contracts. This is a very exciting day for us, cryptoliefhebbers, months, (years?)a long time here’s looking forward to this. The main question is: what are the influences Bakkt in the race, and the regulation will be.
In this article, we will look at the current state of affairs in the Bakkt.
Contents
What is the Bakkt?
Bakkt is a subsidiary of the Intercontinental Exchange (ICE), and it has finally received approval from the U.s. Commodity Futures Trading Commission (the physical number of bitcoin futures contracts.
A lot of difficult words in a single sentence, so we’re going to take them down. What ICE needs to know is that they are in the rest of the financial world, as a thick finger in the porridge of. Of the united states to Singapore, and even in the Netherlands. ICE is the umbrella organization of the well-known New York Stock Exchange. Because of its size, as well as the reputation of the ICE, it seemed only a matter of time before I have the proper permits for the Bakkt regularly, it would have been.
ICE has received approval to Bakkt Trust Company is to be established. Under this heading may be actual bitcoins are stored, not only for the Bakkt, but also for the investors, and institutional clients. In addition, an insurance policy is offered if there is something wrong with the coin.
Safe bitcoin store
The service and the added security makes it possible to have a physically-settled bitcoin futures contracts can be offered. First, futures are you to speculate on the future value of a single bitcoin. Do you expect the price to go down? You are entering into a contract in which you sold short goes up. And if you have a long position.
This is not, in itself, a very special place, the other party can offer that, too. The main difference is that in the Bakkt the contracts are to be settled in bitcoin. Seekers must, therefore, bitcoin (instead of dollars) contributions to be in a position to take it.
The Bakkt Warehouse is open today
It is regulated by the New York State Department of Financial Services (NYDFS) as a Limited-Purpose Trust Company, providing customers with a Qualified Custodian bank, or bitcoin
— Bakkt (@Bakkt September 6, 2019
And that is Bakkt is unique by reason of their service in Bakkt the Warehouse, they may, bitcoins are safe store for our institutional clients. By the way, this vault is already open to the public since the 6th of september. Customers will be able to already have bitcoin deposit from the 23rd to speculate.
Details of contract handling
The trading hours are between the hours of 20:00 and 18:00 on the next day (time zone: east coast, USA), a afrekenvenster, between 16:58 and 17:00. The contract size is the equivalent of 1 bitcoin, with a minimum price fluctuation of $ 2.50 per bitcoin (or a contract), and bloktransacties to be carried out by 1 cent.
Stability, and to improve the rules
ICE is hoping that it Bakkt a large share of the market may be on the rise in the trading volume of bitcoin. Want Bakkt take a leading role in price discovery, said. These are Bakkt that is of importance in the pricing of bitcoin. The hope is that the Bakkt for more stability it can provide. That is a very tough job in the current economic and geopolitical environment.
It is also expected that the Bakkt in the hands of the regulators and forces it to be clearer and safer rules for the computer to be developed.
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Well organized
In april, the Blockchain Transparency Institute, in a study of the manipulation of the trading volume on the stock exchanges. Grants to tamper with the data to be in a better position to get it on CoinMarketCap and in order to attract more customers. In the report, are shocking revelations, such as:
“Approximately 88 to 92 per cent of the daily volume is being created. The daily trading volume of bitcoin is about 92% of the origin. Of the top 40 largest stock markets is a volume, the volume of bitcoin is about 65 percent had been fabricated. Almost all these produced the volume, is taken from OKEx, Bibox, HitBTC, and Huobi.”
Bitwise has also written two similar reports (PDF format) with the same conclusion, and sent it to the SEC. The purpose of this is to better regulate, to enforce (where is the Bitwise and with their ETF’s have a leading role in a play, of course).
It is expected that, due to the massive influx of institutional capital and the liquidity of Bakkt, it is becoming more and more difficult for evil parties to turn the volume to your liking.
Kelly Loeffler, the chief executive of the Bakkt: “Bakkt returns, investors finally have the opportunity to make, within a federally regulated exchange to operate in.”