Back in December 2018, the Bakkt cryptocurrency exchange was able to raise $ 182.5 million in the first stage of financing. It was expected that in January the trading platform will begin its work. However, so far it has failed for quite objective reasons. The problem lies in the actions of the US government, the regulator and even Donald Trump himself.
Until now, cryptocurrency trading is mainly carried out by small and medium investors. Paradoxically, there are no suitable conditions for large players. Now they cannot make purchases in full compliance with the requirements of the law and internal charters. They need to have:
So far there is no institution that can meet these requirements. The US authorities have not yet decided how to relate to the trade in cryptocurrency. As a result, the SEC has not yet issued permission to use Bitcoin-ETF contracts. Custody services for the storage of Bitcoin is also not provided. However, in January, several organizations announced the beginning of the creation of such services. But the main thing is that there is still no stock exchange where hedge and pension funds will be able to trade according to conditions acceptable to them.
The situation should be corrected by the Bakkt platform, the launch date of which is constantly postponed. Its creators are the operator of the New York Stock Exchange (NYSE) and the cryptocurrency company Intercontinental Exchange (ICE).
The first talks about creating a trading terminal for large investors appeared in the spring of 2018. But only in August, it was officially announced that the Bakkt platform will exist. In addition to the NYSE and ICE, such giants as Microsoft, Starbucks and The Boston Consulting Group take part in its creation.
According to the project, not only cryptocurrency trading will be organized here. This is a whole range of services for large investors. And the work is organized according to a very interesting scheme:
That is, it is required to organize the work not only of the terminal itself but also of the custodial service. And since the institutional investor can only make purchases of a licensed financial instrument, an application for registration of a Bitcoin-ETF contract has been filed with the SEC.
And then Bakkt Exchange got the first problem. The regulator in every way delays the decision. He had already postponed the deadline twice, and the final meeting was to take place on February 27. According to federal regulations, the Securities and Exchange Commission on that day was supposed to make a final decision.
And then Donald Trump himself intervened. Although not directly, but indirectly. Due to the suspension of the government’s work, the SEC now has every reason to postpone the hearing. According to the latest rumours, it will take place no earlier than mid-April. Will Bakkt work start before this time? Perhaps, but very unlikely.
Therefore, now it is almost impossible to name the date when the launch of Bakkt will be not only planned but a reality. It is already known that the company began to recruit employees. First of all, these are top managers and division managers. The fact that the New York Stock Exchange project may lose its exclusivity adds a zest to the situation. Its closest competitors, the Nasdaq, announced the launch of their cryptocurrency instruments in the first half of 2019. While in Switzerland, since December, Bitcoin-ETF contracts have been trading.