First of all.Bakkt will be not only physical futures trading platform
Bakkt aims to make Bitcoin trading safe for Wall Street. Now, a new acquisition confirms that the cryptocurrency trading company is speeding its plans to revolutionize the way people pay for everything from coffee to cars.
On Monday Bakkt, which was launched by the owner of the New York Stock Exchange, announced the acquisition of assets owned by Rosenthal Collins Group, a century-old futures commissions merchant. As an FCM, Rosenthal Collins specializes in managing commodities accounts for investors and institutions by moving money, handling collateral, and steering trades through bank-owned clearinghouses with minimal risk of
Read article what i am posting about what Bakkt gonna be http://fortune.com/2019/01/14/bakkt-acquisition-consumer-payments/
As for now Bakkt creators are working with CFTC for creating regulation ,friendly regulation what will works for all industry not only Bakkt platform
Where all that bitcoin will come from.Common it is easy from traders and customers of course
Topic: Question about Bakkt warehousing of bitcoin (Read 107 times)
I've heard Bakkt being discussed on the forum, but it was never clear to me what it is exactly. I just took a look at an article, and I'm still a little bit confused.
OP, as far as futures markets go, my understanding is that futures are certainly traded heavily, but rarely do traders want to take possession of whatever it is they're trading. Trades are usually settled in cash, regardless of their right to physically obtain the underlying asset. People who trade gold futures are really just betting on the price of gold; they don't want to eventually get a big pile of it if they're on the winning end of a trade. So I suspect that if a futures market for bitcoin emerged, it would not be for people who want to own bitcoin. They could do that without ever trading futures. I don't think anyone needs to be holding a huge amount of BTC at any point.
The article I read did stress that this might be the way to draw in institutional money, and that's definitely good. I'd love to get a TL;DR version of Bakkt.
OP, as far as futures markets go, my understanding is that futures are certainly traded heavily, but rarely do traders want to take possession of whatever it is they're trading. Trades are usually settled in cash, regardless of their right to physically obtain the underlying asset. People who trade gold futures are really just betting on the price of gold; they don't want to eventually get a big pile of it if they're on the winning end of a trade. So I suspect that if a futures market for bitcoin emerged, it would not be for people who want to own bitcoin. They could do that without ever trading futures. I don't think anyone needs to be holding a huge amount of BTC at any point.
The article I read did stress that this might be the way to draw in institutional money, and that's definitely good. I'd love to get a TL;DR version of Bakkt.
A few assumptions though, so I think the story's not going to fold out as spectacularly as most of the predictions:
1. Institutional money is waiting for something like Bakk, Bakkt is the floodgate.
- I think institutional money is already into Bitcoin, Bakkt will just make it easier to get deeper. There's not going to be a flood waiting behind Bakkt.
2. Bakkt will search for Bitcoin with the orders. So price will be driven up.
- OTC for sure. Pre-agreements with miners, suppliers, other institutional sellers. I think there will be upward pressure but again, not the wild FOMO hype, not from Bakkt alone anway.
1. Institutional money is waiting for something like Bakk, Bakkt is the floodgate.
- I think institutional money is already into Bitcoin, Bakkt will just make it easier to get deeper. There's not going to be a flood waiting behind Bakkt.
2. Bakkt will search for Bitcoin with the orders. So price will be driven up.
- OTC for sure. Pre-agreements with miners, suppliers, other institutional sellers. I think there will be upward pressure but again, not the wild FOMO hype, not from Bakkt alone anway.
Ok so we all know that whenever Bakkt finally opens its doors to futures trading they will be obligated to actually have the bitcoin "in hand" to deliver if a client wants the physical delivery. My question is where in the hell are they going to be able to source all this bitcoin from? I think the delay with them opening is due to the fact that there is no way they will be able to acquire as much bitcoin as they will need without driving the price sky high. If goldman wants to take a position of 1%(100000 coins) it would cost them $500 million at todays price. even if they plan to hold it only a couple months, bakkt still has to have that in their warehouse right? Im not saying chase or boa or goldman even want to buy, all i am saying is if they put in an order, it has to be filled and those coins must be sourced on the open market. I am really beginning to think there is no way that bakkt can actually warehouse coins, there just may not be enough to go around. 
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