The cryptocurrency market has been sluggish lately, but a major development has sparked excitement: Bakkt, the cryptocurrency exchange backed by Intercontinental Exchange (ICE)—parent company of the New York Stock Exchange—has raised $182.5 million from prominent investors. The platform plans to launch physically settled Bitcoin futures in 2019.
Key Investors Behind Bakkt
Bakkt’s funding round includes:
- Horizons Ventures (backed by Li Ka-shing)
- Naspers (Tencent’s largest shareholder)
- Microsoft
- Boston Consulting Group
- Alan Howard (top hedge fund manager)
This institutional involvement signals growing confidence in crypto’s future, with many hoping it could catalyze the next bull market.
Why Bakkt’s Launch Matters
- Institutional Trust: ICE’s reputation lends credibility, attracting deep-pocketed investors.
- Physical Bitcoin Futures: Contracts settled in actual BTC (not cash), boosting market liquidity.
- Regulatory Advantage: Unlike Bitcoin ETFs, Bakkt doesn’t require SEC approval.
👉 How Institutional Money Could Reshape Crypto
Bakkt’s Market Impact
Solving Current Challenges
- Access Barriers: Retail investors face strict KYC processes; Bakkt simplifies institutional entry.
- Liquidity Crunch: Limited fiat inflows and low liquidity exacerbate sell-offs (e.g., post-BCH fork). Bakkt aims to absorb this pressure.
Future Goals: Beyond Trading
Bakkt plans to expand Bitcoin’s utility:
- Replace Credit Cards: Targeting $25T annual credit card transactions, reducing 2–3% fees.
- Off-Chain Scaling: Lightning Network-like solutions for faster retail payments.
- Microsoft Integration: Leveraging Azure to enhance retail adoption.
FAQ Section
Q: Will Bakkt trigger a Bitcoin bull run?
A: While institutional inflows are bullish, broader adoption and regulatory clarity remain key.
Q: How do Bakkt’s futures differ from CME’s?
A: Bakkt settles in physical BTC; CME uses cash settlements.
Q: Is Bitcoin really “rat poison” (per Buffett)?
A: Bakkt’s $182M bet suggests institutions disagree—time will tell.
👉 Why Crypto’s Future Hinges on Trust
Final Thoughts
Bakkt bridges traditional finance and crypto, offering:
- Institutional-grade infrastructure
- Enhanced liquidity
- Real-world payment solutions
The 2019 launch could mark a turning point—but as always in crypto, caveat emptor.
### Keywords
- Bitcoin futures
- Institutional investment
- Bakkt
- Crypto liquidity
- ICE
- Physical settlement
- Cryptocurrency adoption