Bakkt has officially announced the launch of its futures backed by physical bitcoins. The first contract was traded yesterday at 20:02 ET at a price of $10,115.
A dedicated page on their website has been published to explain how the Bakkt Warehouse custody service works, describing the protection of customers’ resources as a key component of their business.
This infrastructure is based on the group’s corporate security capabilities, such as those that protect the dozen stock exchanges operated worldwide, including the New York Stock Exchange.
They use both hot and cold wallets, with a $125 million insurance policy, and work with BNY Mellon, one of the world’s largest custodian banks.
Most of the BTC stored are in the cold wallets, offline, kept in bank-level vaults.
The exchange volumes of Bakkt contracts are not high at the moment, but positive comments have been received from the company in this regard. Moreover, as happened with the CME futures, the exchanges during the first days could remain contained, and then increase over time.
So far only 18 contracts have been traded, with the price falling from $10,115 to $9,972.
According to Sun Zhu, CEO of Three Arrows Capital and co-founder of Sensus Markets, Bakkt could be first a gentle rain and then a downpour. In fact, many traders prefer to wait to see what happens to these new products during the first few days of market placement. In addition, information about these products needs some time to spread.
According to Adam Black, CEO and co-founder of Blockstream, Bakkt joins the regulated market that institutions can take advantage of, but it will take time for companies to set up their accounts, decide on trading strategies and invest.
It is therefore still too early to judge what impact this new financial product has, or can realistically have, on the price of bitcoin or on the crypto industry in general. Also because, in addition to allowing the entry of institutional investors into this sector, it is supposed to evolve into a real payment system in the future, which can perhaps also be used at Starbucks shops.
In short, that of yesterday should be just the first small step of an initiative that has great ambitions and aims to impose itself in the sector as a disruptive phenomenon. If in the near future all this will be supported by significant trading volumes then much more is to be expected from this project.