Last week, Bakkt opened its “Bitcoin Warehouse” for the storage of customer deposits and withdrawals ahead of its Bitcoin Daily & Monthly Futures launch later this month. Now, Bakkt CEO Adam White is waxing poetic about the revolutionary effect he expects it to have on the financial industry when it goes live on September 23.
Today our Warehouse opens for customer bitcoin deposits and withdrawals as we prepare for the Bakkt Bitcoin Daily & Monthly Futures, launching September 23
The availability of physical delivery brings more flexibility in managing bitcoin exposure
— Bakkt (@Bakkt) September 6, 2019
Bitcoin Storage: The Greatest Thing Since the ATM?
After introducing his latest blog post with fond statements about how automated teller machines (ATMs) revolutionized and disrupted the banking industry, White segues straight into how he expects Bakkt to impact both Bitcoin and other digital assets positively. The CEO wrote:
“With the launch of the Bakkt Warehouse last week, I’m reminded of the role that innovation and technology play in shaping the financial industry. Looking forward, I’m excited at the role Bakkt will play in the coming years as we establish greater access, transparency and utility for bitcoin and other digital assets.”
While Bakkt is widely considered to be a positive step on Bitcoin’s path to greater institutional adoption, ATMs arguably had a more significant impact on retail customers looking to buy groceries than institutional investors looking gain exposure to a relatively new asset class — so one might be excused for finding White’s poetic waxing a bit trite.
Institutional Firms, Meet Cryptocurrency
Bakkt has been a hot topic in the Bitcoin world since it was originally announced roughly one year ago. It most notably provides physically-delivered contracts for Bitcoin futures — as opposed to simply offering paper derivatives. Explains White:
“When the physically-delivered Bakkt Bitcoin Futures contracts launch on September 23rd, we will create the first fully regulated marketplace specifically designed to meet the needs of institutional firms and their clients.”
The Bakkt Warehouse itself is comprised of the same “institutional-grade infrastructure, operational controls, and security protocols” used by the New York Stock Exchange (NYSE) and other markets — which is not surprising, given its connection to financial market company Intercontinental Exchange (ICE), which operates 12 regulated exchanges/markets, including NYSE.
Like the intro of the ATM ~50 years ago, last week’s launch of the @Bakkt Warehouse is an example of how innovation and technology have shaped the financial industry for decades and will keep doing sohttps://t.co/cK3tMSmU59
— Adam White (@WhiteAdamL) September 9, 2019
Is Bakkt Really Good News for Bitcoin?
Bakkt’s warehouse and futures contracts are also “designed to meet the highest standards of compliance and oversight” — something not everyone in the Bitcoin and cryptocurrency space finds particularly attractive.
Bitcoin is not meant to be stored in a warehouse. That defeats the whole point of decentralization. Your insurance policy means as little to us as the insurance of “our” money in a bank account.
— A v B (@ArminVanBitcoin) September 9, 2019
How the official launch of the Bakkt Bitcoin Daily & Monthly Futures will affect the price of the leading digital asset remains to be seen.
The cryptocurrency market leader is currently chopping up day traders in a range between $9,300 and $11,000 — and, coincidentally, dropped approximately seven percent in price only moments after Bakkt announced the opening of its warehouse.