Report claims Bakkt’s Bitcoin futures contract launch might be delayed
It could be a while before Bakkt could get its Bitcoin futures contract approved. A new report claims that the CFTC’s [Commodity Futures Trading Commission] decision-making process has been progressing slow regarding Bakkt’s Bitcoin futures contract. Looking at CFTC’s current pace, the futures contract wouldn’t be launched at the desired time, said a CoinDesk report citing sources.
Intercontinental Exchange subsidiary, Bakkt decided to launch daily Bitcoin futures contract on January 24 for a second time. The exchange was working with the CFTC to build a business plan that would comply with the commission’s policies. CFTC has to grant an exemption to Bakkt’s policy of keeping custody of customer’s Bitcoins in their warehouse storage solutions. The commission only allows customer funds to be stored in a bank, trust company or futures commission merchant.
The agency’s staff has finished reviewing the exemption and passed it on to the commission on Friday said the report citing sources. The commission has to vote on whether to invite public comments for the proposal. After the comment period, the commissioners would give to review the comments and then vote themselves. Now that the U.S. govt has declared Monday and Tuesday as holidays, the CFTC commissioners will only start on Wednesday to vote on the decision of inviting public comments. If they begin to invite public comments by Wednesday then the 30 day period only ends by January 24. This means that the launch date might be postponed further.
The exchange might extend the launch date said the report citing sources. It will announce the new launch date, but not until next week.
Many speculators suggest that Bakkt bitcoin futures approval would begin a bull rally for cryptocurrencies in the market. Alex Kruger, the crypto analyst indicated, ”Possible outlook for BTC: First, the bull run on BAAKT & renewed ETF approval narrative early 2019. Second, ETF denied Feb/27, massive crash, goodbye 6k, hello 4k, cleanse all weak hands Lastly, having 2020 narrative and re-adjustments lead to a sustained bull run for the rest of 2019 & 2020.”
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