- Bakkt didn’t meet the January 24 launch due to delay in approval
- Delay in approval could hurt investors
The much-awaited Bakkt Bitcoin futures project was expected to be a hit due to its association with the International Exchange (ICE) that operates New York Stock Exchange (NYSE) did not meet its January 24, 2019 deadline. Even with its good prospects, the project’s approval remains delayed leaving investors waiting on tenterhooks.
Regulatory approval for the hotly anticipated Bitcoin futures market has been long in coming, with six months passing since ICE revealed its vision without the slightest indication that it’s going to happen any time soon. All that Bakkt can do is to wait with crossed fingers until the Commodity Futures Trading Commission (CFTC) processes their application.
Shutdown Affected Futures Markets and ETFs
The delay in handing Bakkt’s and other applications was caused by the government shutdown that started on December 22, 2018, and went on for a whole five weeks. This created a serious backlog at the CFTC and other government agencies, and once the shutdown was over, the agency seems to have given priority to other issues that are unrelated to cryptocurrencies.
The shutdown has seemingly affected two important types of projects in cryptosphere which are the futures markets and ETFs, which were poised to become a breakthrough in crypto space.
The Bitcoin futures market and ETFs hold a massive appeal for institutional investors intent on entering crypto space; many pundits believe these will enable Bitcoin to break into the world of traditional finance. With the delay from the government, there is fear that the ambitious business plan by Bakkt and others is going to be severely affected.
Bakkt launched a hiring campaign last January in anticipation of the January 24th launch but which was not to be.
The company had announced vacancies for software developers, including mobile and blockchain developers; an institutional sales manager with experience in North America or Asia; and three higher-level positions including a director of finance, director of security engineering and director for blockchain engineering.
Introduce Trust and Efficiency
Bakkt is creating an open, seamless global network to enable you to buy, sell, store and spend digital assets simply, safely and efficiently. The global platform is intended to connect investors, merchants and consumers, making it easier, faster and more cost-effective to access, trade and use digital assets.
The company’s open-source neutral platform has been designed to the necessary regulatory requirements and support innovation surrounding blockchain applications and digital assets. Consumers and institutions will be able to buy, sell, store and spend digital assets in an environment of trust and efficiency by connecting existing market and merchant infrastructure.
With the first quarter 2019 just about over and the CFTC is yet to release Bakkt’s proposed exemption from public comment, it means that there is no way the launch can happen until after mid-April. The commissioners are expected to give the public 30 days to provide their comments before they take a few more days to study the proposals and take a vote for or against approval.