The bitcoin price spiked after regulated futures platform Bakkt announced it had received approval to launch in September. | Source: Shutterstock
By CCN Markets: Bakkt, a bitcoin futures trading platform operated by ICE, the parent company of the New York Stock Exchange (NYSE), finally received approval from the Commodities and Futures Trading Commission (CFTC) to initiate its long-awaited launch.
“Our contracts have already received the green light from the CFTC through the self-certification process and user acceptance testing has begun. With approval by the New York State Department of Financial Services to create Bakkt Trust Company, a qualified custodian, the Bakkt Warehouse will custody bitcoin for physically delivered futures,” the official statement of Bakkt read.
Throughout 2019, especially since the soft opening of Bakkt’s testing platform, investors expected the firm to obtain approval from U.S. regulators by the year’s end. Bakkt’s first offerings will go live in September.
Following the official announcement, the bitcoin price surged by nearly $400, extending its two-day recovery and swiftly overturning a possible short-term downtrend.
On August 15, the bitcoin price slipped to $9,500, ranging below $10,000, which is widely acknowledged as an important psychological level for investors.
Within two days, the bitcoin price has increased by more than 10 percent against the U.S. dollar.
Why would Bakkt have an impact on the bitcoin price?
As emphasized by Compound Finance general counsel Jake Chervinsky in late 2018, Bakkt uses physically-settled contracts that allow investors to receive actual BTC when the contracts settle, rather than cash.
2/ Bakkt’s goal is to make digital assets easier to buy,