- The issue about awaiting regulatory approval raises doubts on Bakkt trading platform
- The timing of the announcement seen by the crypto community as suspect
- Postponement happens when there’s increased crypto appetite by institutional investors
The fate of Bakkt’s postponed Bitcoin Futures launch lies in limbo, following a revelation by the company it’s awaiting “regulatory approval.” Questions now persist on whether this will be happening anytime soon.
Shadow of Doubt Cast Over the BTC Trading Platform
Bakkt, a subsidiary of the New York Stock Exchange, announced a decision to postpone the launch of their highly expected Bitcoin Futures until towards the end of January 2019. However, in a surprising move, the company now says the launch will be subject to regulatory approval. The communication through their official Twitter account comes to many as a surprise. The tweet, answering the question on when “trading and warehousing would begin stated:
Question: When will trading and warehousing begin?
Answer: We expect the contract to launch on January 24, 2019, subject to regulatory approval. We’ll continue to update you on our progress and milestones.
— Bakkt (@Bakkt) November 27, 2018
While Bitcoin, like all other cryptocurrencies, has experienced a serious downfall, the leading cryptocurrency still leads with 53.1 percent of the cryptocurrency market’s total market capitalization and leads in terms of adoption to date. This according to Bakkt is the reason the company finds it “the most trustworthy cryptocurrency for robust futures contracts.”
Bakkt announced the postponement of the launch of their Bitcoin Futures trading platform until January 24, 2019, happening only one day after the price of the digital currency experienced a serious price crash. The company said in an official medium post by their CEO Kelly Loeffler last week the main reason was an approval by CFTC besides there being “more work to be done.”
Awaiting “regulatory approval” may be true but it seems to raise more questions than answers. Speculation is rife within the Bakkt community that the timing and subject related to the announcement, immediately following the market plummeting is suspect, with some saying the company intends to see the market price going further down.
Crypto Community Keeping a Constant Eye
Whether this is a convenient coincidence or part of a wider calculated scheme to bring the price of the world’s leading cryptocurrency to a level where institutions will be comfortable enough to dip both feet only time will tell.
Pundits are keeping an eye on Bakkt, and other institutions keen on entering the crypto market, at the most unlikely time when skeptics are wondering whether this is not the beginning of the end of Bitcoin and other cryptocurrencies. As we reported on November 27, 2018, sources close to NASDAQ, the company that operates the New York Exchange, reported that the company was pushing on with its Bitcoin futures project, regardless of the falling Bitcoin prices.
