Beginning in September, Bakkt, a subsidiary of Intercontinental Exchange Inc., will allow its investors to trade assets with Bitcoin (BTC) for the first time. The decision was approved on Friday (16) by the New York State Department of Financial Services. The first round of cryptocurrency negotiations taking place on 23 September paves the way for a significant deal of trade in various spheres. This includes the New York Stock Exchange (NYSE), which is owned by Intercontinental.
Plans from the reality of Bitcoin
According to Kelly Loefller, chief executive of Bakkt's office, this action tends to create greater confidence about Bitcoin prices. She says this is an important step as this may bring new optimism to the cryptocurrency market. Given its more volatile digital currency status, BTC is known for a regular price swing. For the executive, this feature shows a lack of confidence in their values.
Accordingly, Kelly points out that some futures contracts within the Intercontinental market may take the Bitcoin price to a new annual curve. This will give investors the chance to take a closer look at all cryptocurrency movements in the market, just as they would with other assets. Some brokers who have worked with the company are also agreeing to work with digital currency contracts.
Intercontinental's main objective
The company has already stated that its main objective is to create an ecosystem that encourages pension funds, grant systems and other institutions to invest in the cryptocurrency market. This is intended to make it easier for consumers to buy products and assets from digital currencies. It announced partnerships with big names that embraced the idea, such as Starbucks and Microsoft.
Bakkt's chief executive says Intercontinental's goal is to have the partnership to structure its digital currency payments from 2020 onwards. The most important step will be to circumvent factors such as the months of skepticism the company has faced regarding high volatility and people's insecurity regarding BTC and other digital currencies.
How might cryptocurrency be impacted?
BITCOIN PRICE SURGES 10% IN 48 HOURS AS BAKKT COUNTDOWN BEGINS
This may be great news for Bitcoin, especially given the losses it has faced in recent days. Proof of this was the 6% loss reversal picture of the value of cryptocurrency following this announcement, which managed to overcome falls that put it below five digits and traded at $ 10,400. This can mean a necessary new breath for both BTC and other digital currencies.
Although the potential effect of Bakkt on the bitcoin price depends on the level investor demand, based on the consistent inflow of institutional capital throughout the past 18 months on platforms like Grayscale and Coinbase, Bakkt is expected to increase the liquidity in the bitcoin market.