Institutional admission to the first portal! Bakkt will become a major driver of the cryptocurrency market

Bakkt, the cryptocurrency exchange under the NYSE's parent company, the Intercontinental Exchange Group, will launch user acceptance testing of Bitcoin futures products today.

Bakkt has completed the first round of financing of $182.5 million. The investment institutions involved in the first round of investment include Boston Consulting Group, Galaxy Digital, Victoria Harbour Investment, Intercontinental Exchange, Microsoft Venture Capital, and Pantera Capital. With its strong background, Bakkt is widely regarded as the first convenient portal to promote traditional institutional investors into the world of cryptocurrencies.

On July 18, 2019, Bakkt held a digital asset summit on the New York Stock Exchange, attended by more than 150 investors and institutions. Everyone has reached a consensus on Bakkt: There are already many institutional investors and venture capitalists ready to bring traditional assets into the world of cryptocurrencies. The release of Bakkt may be a major driver of market growth.

On July 18, 2019, Fundstrat participated in the Bakkt Digital Assets Summit held on the New York Stock Exchange with more than 150 investors and institutions. Kelly Loeffler (Bakkt CEO), Betty Liu (ICE Vice Chairman), and Adam White (Bakkt Chief Operating Officer) hosted Dawn Stump, Chairman of the US Commodity Futures Commission, Ari Paul, co-founder of Blocktower, and Pantera Capital CEO Dan Morehead, and had an in-depth discussion with them.

Bakkt's release this quarter may be delayed, and a mock release is expected on July 22. The release of Bakkt's comprehensive service is of great interest in the industry, including custody, cooperation, payment and settlement of future contracts with the parent company ICE. As we mentioned in our previous articles, Bakkt broke many barriers and allowed traditional investors to expand their investment direction and thereby invest in cryptocurrencies.

01

CFTC: Supporting financial innovation, demand for Bitcoin derivatives continues to grow

Dawn Stump, chairman of the US Commodity Futures Commission, pointed out the rules and regulatory responsibilities of the US Commodity Futures Commission and the consensus with the FSOC of the US Treasury Financial Stability Regulatory Commission. There is no cryptocurrency at the moment that will affect economic stability – temporarily.

The US Commodity Futures Commission recognizes the public's need for and interest in the continued growth of Bitcoin futures. The US Commodity Futures Commission is more supportive of financial innovation because they have a strict set of rules in the process of recognizing products. While they supervise these derivatives, they also actively cooperate with the state attorneys general and government agencies to boycott fraud and illegal activities.

Dawn Stump, chairman of the US Commodity Futures Commission, said that although the standards proposed by the G7 summit are very important, it is more important to understand the ideas and risk tolerance of other regulatory systems. In Libra, they still have a long way to go, and the project can only continue if the US Commodity Futures Commission recognizes the public's demand for Libra currency. The US Commodity Futures Commission wants to see more tokens and contracts, not just bitcoin products that are settled in cash (now exploring Ethereum products). LabCFTC is also helping market participants to share information and slowly change the perception of CFTC.

02

Blocktower co-founder: Anti-inflation, anti-confiscation features are the most valuable value of cryptocurrency

Blocktower co-founder Ari Paul believes that if technology is integrated into retail, this will definitely be a great breakthrough, and it will be as reliable and easy to use as Paypal.

Ari Paul also believes that institutions should not negate cryptocurrencies so quickly. The encrypted currency has a compound annual growth rate of 200%-300%, which is almost unrelated to the traditional currency. Investors should occupy a share in this market as soon as possible instead of avoiding cryptocurrency. The cryptocurrency will definitely exist. The company's chief information officer who invested in cryptocurrency in his own name would be too irresponsible if he opposed the cryptocurrency in the company's assets.

Paul also explained why the previous 10x-15x bitcoin cycle continued to attract the attention of regulators. First, the FBI monitors illegal activities. Second, the US Securities and Exchange Commission and the Federal Bureau of Investigation are also considering the risk of cryptocurrency versus the existing system, because cryptocurrencies are now more important to the public and have a closer link.

Ari Paul uses the cryptocurrency anti-inflation and anti-confiscation features as the most valuable value of cryptocurrency. He firmly believes that investors should look for different ways to comply with government decrees. He also believes that in the next decade, some countries will close their borders, even in order not to fight cryptocurrency wars, prohibiting people from leaving their country.

03

Pantera Capital CEO: The cryptocurrency is the most aesthetic transaction, and bitcoin has always appreciated like famous paintings.

Pan More Capital's CEO, Dan Morehead, pointed out that most of the tokens will no longer exist, and the rest are electronic money that conforms to the basic rules, despite the fact that thousands of private programs are built on top of it. In order to solve the bottleneck period faced by Bitcoin and Ethereum, people are exerting their creativity and making exciting progress.

Dan Morehead, CEO of Pantera Capital, believes that micro-transactions and payments based on cryptocurrencies will promote financial inclusion. Bitcoin will continue to have storage value. He predicts that limited partners in his fund will move from Wall Street and technology tycoons to more ordinary people. The cryptocurrency is the “finishing touch” of the financial world and the most aesthetic transaction he has ever seen. Although Bitcoin itself has no commercial value, it is just like Jackson Pollock's paintings, which are only $40 canvases and paints, but they continue to appreciate.

04

Consensus: Bakkt will be a major driver of cryptocurrency market growth

Investors attending the event have great expectations for Bakkt's product launch. The clients present came from all walks of life, many of whom are senior experts in the industry, including some economic firms, exchanges, and experts in high-frequency exchanges. They all want to enter the cryptocurrency market and have a significant share of this market.

It seems that many investors are ready to join the project on the first day of Bakkt's release, and the sales team is continuing to attract the favor of brokers, traders, and investors.

The consensus is that there are already many institutional investors and venture capitalists ready to bring traditional assets into the world of cryptocurrencies. The release of Bakkt may be a major driver of market growth.

Compilation: Wang Linwei

Produced: Carbon Chain Value (ID: cc-value)