It is no secret that 2018 was a very bad year for cryptocurrencies, at least when it comes to prices and market cap. However, in its brighter moments, this year managed to set the stage for some very important events that are expected to make 2019 very successful and profitable. Two things have attracted the most attention, both of which were expected to occur in 2018, only to be moved for early 2019. Those two are Bitcoin ETF decision by the US SEC, and the launch of Bakkt.
What are Bakkt and Bitcoin ETFs and why are they important?
Let’s start with Bakkt first. Bakkt Exchange is a business that is set to launch at the very beginning of 2019. It is a cryptocurrency platform that is set to offer a large number of services, including things such as warehousing and trading. However, there is another thing that makes Bakkt special, and that is the fact that the exchange itself is a product of the same company that has created the New York Stock Exchange.
In addition, Bakkt will be supported by some very influential names, such as Microsoft, BCG, and even Starbucks, to name a few. Furthermore, Bakkt will support crypto-to-fiat conversions. Starbucks will actually be one of the companies that have volunteered to help test the system, as users will be able to convert crypto to USD that can then be used in Starbucks.
Bakkt exchange has a huge potential to bring cryptocurrencies a step closer to mass adoption, but also to show institutional investors that working with them is safe and profitable.
When it comes to Bitcoin ETFs, on the other hand, they are another way to get institutions interested in cryptocurrencies. Through ETFs, institutions will be able to track a specific asset’s performance without actually owning it. That way, the risk of owning crypto — a coin they fear might be worthless — is eliminated, as they would come into contact with cryptocurrencies indirectly.
This way, they will also be able to keep their distance from scammers, price volatility, hacking attacks, and more. The process is overall more convenient and safe, and it can be the first step towards getting institutional investors to actually invest in digital currencies and make the space that much more stable. All that remains now is for the US SEC to decide and approve Bitcoin ETF applications, which is a decision that was pushed for February 27th, 2019.
Can Bakkt and Bitcoin ETF make a difference for crypto?
While there is no way to accurately predict the future and say it with certainty, Bakkt and BTC ETFs will likely have a massive impact on the crypto world. Institutional investors have decades of experience with low-valued assets, and the problem is not losing value due to volatility.
The problem that they have is security, as the possibility of having their assets stolen is what bothers them most. That is a very big problem for companies that regularly invest billions of dollars. Because of this, they would rather miss an opportunity to earn, then run into a risk of losing their funds.
Bakkt and Bitcoin ETFs will bring security in their own way, and encourage investors to join in. This will be a big change, which will likely not have any immediate consequences for the price of crypto. However, in time, the market will reach stability and higher levels of security because of this, which is why the community is so excited about these events.
As a direct consequence, crypto adoption would follow. Slowly at first, and faster after a while, until cryptocurrencies reached the mainstream.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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