Fundstrat’s Tom Lee supplies his two cents on ICE’s Bakkt and its key benefits in comparison with current cryptocurrency exchanges.
Is Bakkt Totally different?
The Intercontinental Alternate (ICE), dad or mum firm of the New York Inventory Alternate (NYSE), introduced August three that it’ll launch Bakkt – a worldwide platform in addition to an ecosystem for digital belongings. CEO of Bakkt, Kelly Loeffler, famous that:
Bakkt is designed to function a scalable on-ramp for institutional, service provider and shopper participation in digital belongings by selling larger effectivity, safety and utility. […] We’re collaborating to construct an open platform that helps unlock the transformative potential of digital belongings throughout world markets and commerce.
However what makes Bakkt totally different?
He notes that Bakkt is bringing 1-day futures contracts of bodily delivered bitcoin the place the contract purchaser will obtain his BTC the next day. That is much like the commodity backed VanEck/SolidX bitcoin ETF proposal, which arguably makes a Bitcoin ETF redundant.
With bitcoins truly being traded, the platform resembles typical cryptocurrency exchanges like Binance and Coinbase. However, Bakkt affords some distinct benefits in comparison with these well-liked buying and selling platforms, in keeping with Lee.
NYSE Operator ICE is Behind It
The truth that Bakkt is owned by the dad or mum firm of the NYSE and has help from corporations reminiscent of Microsoft and Starbucks is an enormous deal.
Based on Lee, ICE already established buying and selling relationships with main banks reminiscent of JPMorgan and with brokers reminiscent of Constancy Funding and Charles Schwab. What this does is paving the best way for conventional traders to entry Bitcoin via their brokers.