It's known to most of us how shady Asian exchanges are when it comes to artificially inflating their volumes and whatnot. The SEC knows that too, and they are trying to figure out how to work around it effectively.
The most effective way to work around this manipulation is to continue rejecting them, or get rid of the backed ETFs, and stick to cash settled ones that at the same time help avoid inflating the price during the next mania. I'm skeptical for sure, but it's not that we have seen anything indicating otherwise. If Bakkt can't get the regulatory approval to launch, which is a possibility, it's confirming my thoughts about how regulators don't want any of this.
I'll give it a couple of months to see where it goes (mainly due to the government shutdown), but there is no reason to believe that just because it's I.C.E behind Bakkt, that it's guaranteed to be approved.
