Connect with us

Bitcoin

Why Were Bakkt Bitcoin Futures Delayed?

Published

on

Bakkt Bitcoin
READ LATER - DOWNLOAD THIS POST AS PDF

Bakkt has been a highly-anticipated project ever since it was first announced in mid-2018. It was supposed to become the largest Bitcoin futures trading platform, and many in the crypto industry hoped that the platform going live might mean the arrival of institutional investors. However, the platform’s launch was delayed time after time, and while it was supposed to go live in late 2018 — it simply did not make it.

Many were hoping that it will finally arrive in February 2019, although the US government shutdown prevented that as well. These days, the situation has finally calmed down, although Bakkt is still struggling with the launch. However, according to recent reports, the problems might lie in the platform’s inability to gain regulatory approval.

The real reason why Bakkt platform cannot go live

Bakkt’s plan is to start offering Bitcoin futures contracts, which ware basically investment contracts according to which the investor is obliged to purchase or sell a certain asset at a certain date, and at a certain price. There are multiple crypto exchanges that already deal with Bitcoin futures, although these contracts are typically settled in cash.

Bakkt’s plan would include paying them out via Bitcoin. Of course, to be able to do this, Bakkt itself needs to hold BTC. However, that would make it a type of custody service. The problem lies in the fact that Bakkt’s custody service must meet certain regulatory requirements — which it, apparently, does not.

According to the regulator, the CFTC, clearinghouses need to deposit customer assets at trust companies or banks, which is a criterion that Bakkt currently does not meet. The fact that the CFTC prevents Bakkt from going live due to this aspect alone might also mean that the US government shutdown is not the only reason why Bakkt launch did not happen in February.

What to expect next?

Considering the problem, it appears that Bakkt has decided to attempt and obtain the necessary permission from New York state regulators. Getting this permission would mean that Bakkt can self-certify without actually acting as a trust company or a bank. However, historically, obtaining a Bitcoin license in the state of New York is neither easy nor quick, which might mean that Bakkt will not see the official launch of its platform for quite some time.

Even so, the project is still allegedly moving forward, at least according to its CEO, Kelly Loeffler, who recently stated that ‘the race day is approaching.’ In addition, the Intercontinental Exchange, which is the parent firm to Bakkt, recently expanded its crypto data feed. This led some investors to believe that Bakkt’s launch might not be that far away after all.

For the latest cryptocurrency news, join our Telegram!

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.

Photo by rawpixel.com from Pexels

Bitcoin

The Bitcoin Revolution: Everything You Need To Know To Take Profits

Published

on

Bitcoin
READ LATER - DOWNLOAD THIS POST AS PDF

Bitcoin is soaring high in the cryptomarket once again, and experts are expecting a return of the bullish trend of 2017. The current Bitcoin price is $7,615 as of 23 May 6:56 AM UTC. This significant jump comes just six months after the Bitcoin price plummeted to a low of $3150 in December 2018. Since then, Bitcoin has experienced steady growth and gain in the market. However, in the last 30 days, the Bitcoin price peaked to $8,320.82, its highest price ever. This phenomenal jump occurred in a span of only 10 days breaking the Bitcoin record so far of significant gains made in short time frames. This positive growth has led to experts forecasting the Bitcoin price to hit the $20,000 mark by the end of this year.

Since entering the market almost 11 years ago, Bitcoin is still at the top of the global cryptocurrencies list. The current circulating supply of Bitcoin is at unbelievable 17,708,875 BTC. The market trend of the Bitcoin price has remained positive even when the currency did not maintain an uptrend. Cryptocurrency researchers believe that Bitcoin has the potential to grow up to a high of USD 50,000 within the next two years.

How to Profit from Bitcoin…

Continue Reading

Altcoins

3 Altcoins That Are Outperforming Bitcoin and Will Likely Face Consequences

Published

on

altcoins
READ LATER - DOWNLOAD THIS POST AS PDF

The crypto market is going through a period of massive recovery in the past few months, which has caused the investors’ optimism to return. While all eyes are on Bitcoin (BTC), as usual, the largest coin seems to be struggling with a major resistance level at $8,000 at the moment. While this level was breached a few times now, every breach resulted in a correction.

At the time of writing, BTC is approaching this level yet again, with its current price being at $7,985,79, and rising further. The price managed to grow by 1.06% in the last 24 hours, and will undoubtedly hit $8,000 in a matter of hours, if not sooner.

However, while Bitcoin continues to remain volatile and struggles with waves of growth and decline, there are some altcoins that are not following its path. Of course, most of them are performing in pretty much the same manner as BTC, as they always had. But, a few coins have actually managed to outperform Bitcoin in recent months.

While optimists believe that this might lead to decoupling from Bitcoin — something that only Binance Coin (BNB) managed to pull off up to this point — it is likely that there will be consequences for these cryptos. This likely means that a price drop for these specific coins awaits somewhere in the near future, as outperforming BTC…

Continue Reading

Altcoins

3 Cryptocurrencies Most Likely to Follow Bitcoin’s Performance

Published

on

cryptocurrencies
READ LATER - DOWNLOAD THIS POST AS PDF

For more than a year, the cryptocurrency market has been dominated by bearish influence, with most coins seeing constant drops, or stagnation, at best. This all changed in the past few months, starting with Bitcoin which once again started leading the market up, bringing one minor rally after another.

BTC itself experienced massive losses in 2018, with its price going down by around 84%. Most other coins among the top 10 mirrored its performance, and some of them experienced even greater losses. However, now that Bitcoin sees gains again, these cryptocurrencies are still following its example, and many of them have seen massive breakouts. Some of the more notable altcoins that followed Bitcoin’s recent example are Ethereum (ETH), Stellar (XLM), and Cardano (ADA).

Ethereum performance mirroring Bitcoin’s price

As mentioned, Bitcoin led every rally so far, but before it did, its price first went through what is known as an ascending triangle pattern. The pattern held for around five months, which is exceptionally long for the crypto world. However, once the pattern was finally broken — the coin’s price skyrocketed, more than doubling itself within only two months.

One thing to note is that Ethereum performed in pretty much the same fashion. After five months of struggle and confusion for investors, the second largest cryptocurrency also managed to break the pattern and skyrocket as well. It…

Continue Reading

Elite