BAKKT won’t do much for the price in the short term but I guess the hope is that institutional money flows in once the avalanche of adoption comes in 2021?
I guess nobody wants to plough their money in now until/unless it’s a sure thing which only becomes apparent once a proper bull run starts.
Another thing to think about when speaking of Bakkt is that actually not all the institutional money willing to trade BAKKT is able to do so.I guess nobody wants to plough their money in now until/unless it’s a sure thing which only becomes apparent once a proper bull run starts.
To buy Bakkt smaller institutions, that are not exchange members (all smaller institutions, basically) must go trough a clearer.
A clearer is someone rolling your positions from your trading account to the exchange trough their own accounts, and eventually taking care of delivery procedures.
Well, while clearing a cash future is quite trivial, clearing a physical Bitcoin is totally another story.
When CME/CBOT launched a lot of clearer were late in allowing their own clients clear the cash settled bitcoin, even if it was virtually indistinguishable from any other future from clearer’s perspective (being only a sum of cash flows).
As far as I know the story is repeating this time, only in a bigger scale, as available clearer are even less prone to allow clients trade for the moment, I think mainly for technical reasons handling clients bitcoin with good enough security and accountability.
Interesting, thanks mate.
