Thus far, Bitcoin is having a good year. Its parabolic rise to $12,000 followed by a $10,000 price readjustment is better than the near $2500 low at the beginning of the year. Things may even get better for the cryptocurrency as the much-awaited Bakkt launch nears. Following the start of user testing of the Bakkt platform, likely, the platform will fully launch later on in the year.

Bakkt offers BTC futures contracts which many in the crypto community believe that it may influence the price of BTC positively.

Bakkt Arrives Following Months Of Feverish Anticipation

The hype surrounding the platform is certified considering the investment options it will provide to traditional investors once it is launched. Bakkt offers solutions to barriers that prevent institutional investors and other traditional investors from accessing the cryptocurrency market.

Further, given that Bakkt is a project by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), its credibility points increase drastically among institutional investors. The fact that ICE came up with the platform was enough to create hype around Bakkt before it announced its full services, which further warranted the hype.

Launching a successful platform will open up new investment opportunities in the cryptocurrency scene, especially in blockchain, which is still arguably the most sought after and lucrative cryptocurrency.

The potential Bakkt has once launched explains why its test-launch was highly anticipated and is closely being followed by the crypto community.

We think #Bakkt could be a huge catalyst for institutional participation in the #crypto market. Here are our takeaways from the Bakkt institutional summit yesterday at the NYSE… #bitcoin #BTC #ETH @fundstrat @fundstrat_ken pic.twitter.com/lkRylD1P4C

— Sam Doctor (@fundstratQuant) July 19, 2019

Is Bakkt The Gateway Institutions Have Been Waiting For?

Bakkt offers physically-settled Bitcoin futures contracts which would be a first in the market in case they launch successfully. Currently, futures contracts that exist offer fiat-settled future contracts where the contract is settled via fiat equivalent in value to the cryptocurrency in the futures contract.

Physically-settled BTC futures would help increase liquidity in the market, considering the contract models currently being tested. Bakkt is offering short term contracts, daily and monthly, which increase the chance of BTC changing hands daily while attracting funding from various institutions as returns are promised within the short-term.

Furthermore, Bakkt hopes that its general model and platform will help revitalize funding in the BTC market as it taps into institutional financing.

Bakkt begins testing on Monday.

The hype is bakkt with substance though.

Unlike other futures exchanges, this is settled in bitcoin.

Hard, actual bitcoin is paid out, not fiat equivalent to the price of bitcoin.

The result is better price discovery and liquidity for bitcoin.

— Rhythm (@Rhythmtrader) July 20, 2019

Long Delays Disrupted Initial Plans

Based on Bakkt’s roadmap, the initial launch date for the company’s service was slated for December 2018. However, some delays saw the launch date pushed to January 2019. Further delays led to the launch date being pushed further into 2019. According to CoinDesk, the delays were caused by Bakkt’s decision to self-certify instead of getting the Commodity Futures Trading Commission (CFTC) to approve its product.

The recent test launch indicates that all is currently proceeding well for the company and its products should launch before the end of 2019. Based on Sam Doctor’s tweet, the launch could even be sooner as he details reports released by Fundstrat which mention a Q3 release of Bakkt’s product.

What It Means For Bitcoin

Already, some tweets indicate that large BTC movements have been recorded involving Bakkt’s wallets.

🚨 🚨 🚨 🚨 🚨 104,000 #BTC (1,071,200,000 USD) transferred from BAKKT UAT wallet to Yobits wallet

Tx: https://t.co/1kIQV2kpkm

— RideTheLightning⚡️ (@MediumSqueeze) July 22, 2019

The test launch was enough to influence such movements, an indication of future BTC movements that are to come once the platform goes live.

Now, BTC is likely to improve in value as Bakkt opens up a new investment channel for institutional investors, probably even the first of its kind in the cryptocurrency market.

Here’s hoping Bakkt proves as successful as the anticipation hoped it would be.

Featured Image Source: The Block Crypto/Bakkt