Bakkt Starts Acceptance Testing Today
The Bakkt physical delivery Bitcoin (BTC) futures are finally making a foray into real-life trading, after years in development.
Bakkt has won a significant landmark, after reaching the stage of acceptance testing for its physical delivery Bitcoin (BTC) futures. The crypto community immediately reacted, seeing the event as a significant milestone:
The news arrives at a time when US-based buyers of cryptocurrency have been restricted by new regulations, and introducing Bakkt means a new form of acquiring BTC. The Bakkt exchange has also worked to provide a custodial solution, ensuring greater security and oversight.
“On July 22, two days after Apollo 11’s 50th anniversary, Bakkt will initiate user acceptance testing for its bitcoin futures listed and traded at ICE Futures U.S. and cleared at ICE Clear US,” announced earlier Adam White, COO of Bakkt.
The long-awaited announcement failed to budge the price of BTC, which stagnated over the weekend. BTC traded at $10,607.18 as of 8:45 UTC on Monday, this time skipping a more dramatic weekend rally.
The current round of acceptance testing will be very limited, with a small pool of selected traders. Activity on the ICE will be monitored for interest, before eventually allowing full trading by the end of the year. The testing should be completed within a few weeks, expects Bakkt.
Cryptocurrency markets have attracted very slim institutional interest, and so far another mainstream product, the Bitcoin exchange-traded fund (ETF) has been delayed. In comparison to traditional commodity markets on the ICE, cryptocurrency has lagged.
Most cryptocurrency trading happens on international exchanges, with swaps between various coins, mostly Tether (USDT). The Bakkt market will introduce another source of fiat inflows into the BTC market, eventually creating physical demand.
Still, regulators remain skeptical about the role of BTC as money. So far, the asset has been regulated as a commodity, a doorway allowing some form of mainstream investment. Any claim to being alternative money has been shot down. The US regulators are especially vigilant after Facebook’s idea to introduce Libra, a payment system that has the potential to serve as alternative money, by reaching as much as 2 billion users.
At the same time, the Bitcoin network carries about 500,000 active addresses and a much smaller number of owners and users.