What is the recent hot Bakkt?

On September 6, Bakkt officially said on Twitter that the company officially opened the Bakket Warehouse service to customers and prepared for the upcoming physical delivery bitcoin futures service on September 23. As the first bitcoin contract platform to provide physical delivery, the news has spread widely within the circle. At the same time, outside doubts have followed – what kind of background does Bakkt have? What is the impact on the digital currency market?

 

Bakkt background

Bakkt is a platform for the purchase, sale, storage and use of digital currency, created by the New York Stock Exchange parent company ICE (Intercontinental Exchange) in August 2018. In January 2019, Bakkt announced that it had received $182.5 million in financing from a group of well-known investment institutions. These include 12 institutions including the Boston Consulting Group, CMT Digital, Eagle Seven, Intercontinental Exchange, and Microsoft Ventures.

Bakkt's biggest advantage

For some investors, the current bitcoin price is too high, but the prospects are very promising. They want to be able to invest in Bitcoin without having to buy Bitcoin directly, in which case Bitcoin futures offer them a very viable option.

Different from the way in which the spot is handed over, the futures are not real goods. It is a contract that promises to pay the “goods” in the future. Bitcoin futures are usually standardized contracts based on the bitcoin price index.

According to the official website, Bakkt currently offers two futures contracts. One is to settle the bitcoin futures contract daily. After the daily trading, the exchange will settle the profit and loss, trading margin, handling fee, tax, etc. of all contracts at the settlement price of the day. The fee, which will enable the customer to trade on the day market; the second is the monthly Bitcoin futures contract, which will enable the trading of the previous month and forward pricing curves. One of the biggest advantages is the one-day futures contract. Simply put, you trade Bitcoin futures on Bakkt. You can get real bitcoin on the second day of liquidation. This is the cash-settled futures with CME and CBOE. Very different.

Bakkt operations

01 business hours

 

Bakkt pre-set the trading hours. The US Eastern Time is from 8:00 pm to 6:00 pm, London time is from 1 am to 11 pm, and Singapore time is from 8 am to 6 am. It's all from Sunday to Friday.

 

02 transaction fee

In order to attract more user transactions, Bakkt announced that it will not charge any fees until January 1, 2020. Starting January 1, 2020, it will charge the following fees:

Screen trading: a daily futures contract is $1, and a monthly bitcoin futures contract is $1.25;

ETP and block trades: a daily futures contract for $1.6 and a monthly bitcoin futures contract for $25;

Delivery fee: Bakkt will charge a contract for the delivery of two futures for $9.75.

03 Clearing and settlement

Users can choose to provide clearing and settlement services to organizations and entities on the Bakkt platform, but these service providers must be members of Futures Commissioner (FCM) and ICE Clear US (ICUS). Otherwise, users will not be able to use the Bakkt platform. transaction.

What impact does Bakkt have on the market?

For end users of the Bakkt platform, the platform responds to any malicious attacks by taking physical and virtual measures to ensure that cryptocurrency assets are protected, and these funds are saved in the frozen wallet as an additional level of protection.

Finally, the impact of the Bakkt platform on digital currency futures trading is huge. It is expected to be a tool to help cryptocurrencies transform their image from speculative assets into more efficient exchange media. If all goes well with the launch of the Bakkt platform, we can expect more and more merchants to accept Bitcoin and other encrypted assets as payment for their goods and services.

Author: Dipperin Li Yanlan