All eyes are closely watching the launch of Bakkt’s physically settled Bitcoin futures product, as it is widely expected to provide a much-needed boost for the aggregated crypto markets.
It is important to note, however, that investors may be slightly disappointed in the immediate implications of the platform’s launch, as other institutionally-aimed platforms that have launched in recent times have been met with little utilization.
Bakkt Launch One-Week Away; Will It Catalyze a Bitcoin Price Surge?
Bitcoin has been facing significant downwards pressure in recent times, which has once again forced it down towards the key psychological price level of $10,000.
The coming week could prove to be a volatile one for Bitcoin, as traders may begin entering fresh positions in anticipation for how Bakkt could potentially shape its near-term price action.
PlanB, a popular cryptocurrency analyst on Twitter, spoke about Bakkt in a recent tweet, explaining that he believes it will create a price discovery model apart from the cash market’s influence.
“7 business days until … Intercontinental Exchange (ICE) is offering physically settled Bitcoin futures through its Bakkt unit. It will act as exchange, clearinghouse and settlement authority. ICE BTC futures will create price discovery apart from any cash market influence,” he explained.
It still remains unclear as to what impact this may have on Bitcoin’s immediate price action, but if the platform encourages large market participants – including institutions – to foray into the nascent markets, it will likely be a bullish catalyst in the mid-to-long term.
In the short-term, however, other products that have been tailored towards institutional investors have been largely met with little interest from institutions.
Alex Krüger, an economist who focuses primarily on cryptocurrency, recently explained that VanEck’s Bitcoin Trust for institutional investors only has a mere four BTC under management.
“Three days after launch, the VanEck bitcoin trust for institutional investors has reportedly managed to issue a whopping 1 (one) basket. It has 4 bitcoins or $41,400 in assets under management. Massive,” he explained.
The lack of interest in this product may be because institutions are awaiting the launch of Bakkt, but only time will tell as to whether or not it meets investor’s massive expectations for it being a catalyst that sparks the next parabolic run.