In early August, The Intercontinental Exchange (ICE) launched an open ecosystem, Bakkt in collaboration with. BCG, Microsoft, and Starbucks. The highly anticipated wall street firm took to their official Twitter account to announce its first physically settled Bitcoin futures contracts.
Our first contracts will be physically delivered Bitcoin futures contracts versus fiat currencies, including USD, GBP and EUR. For example, buying one USD/BTC futures contract will result in daily delivery of one Bitcoin into the customer’s account.
The ICE, owner of the New York Stock Exchange (NYSE) partnered with the aforementioned companies to create an open, seamless global network that will allow the investors to buy, sell, store and spend digital assets simply, efficiently and securely.
Could This boost Bitcoin ETF
The U.S SEC remains cautious about approving BTC ETF and have constantly cited the lack of regulation as one of the reasons. Aiming to securely regulate the cryptocurrency markets, Bakkt solves the problem of custody services for large-scale institutional investors. Which in turn could cease some worries of the SEC in regards to BTC backed ETF; CNBC’s Brian Kelly elaborated on this:
This is huge news. I think the market is completely underappreciated. So let us talk about why [Bakkt] is the biggest news of the year for Bitcoin. It paves the way for a Bitcoin ETF. Last week I stood here and said you know what, I don’t think the Bitcoin ETF will get approved. And guess what? The Winkelvoss ETF got rejected. Why? Because there was not a US regulated exchange and there wasn’t US regulated custody.
BTC bulls have constantly predicted that the token will soon surge up in value by the year-end. Their confidence is also backed by the scheduled launch of Bakkt in November.