Bakkt’s Cryptocurrency Exchange is Coming, But Will Institutional Investors Follow?

bakkt

By Greg Adams from Blokt

The Bakkt cryptocurrency trading platform is due to launch this November. Many are hoping that it will bring institutional investors to the market, but will this really happen?

Cryptocurrency investors are patiently waiting for the arrival of the Bakkt cryptocurrency exchange, with the hope that it will bring institutional investors, more retail participants, and maybe even Bitcoin availability in 401k accounts. Its launch is planned for November of this year, and it is backed by the trading titan Intercontinental Exchange (ICE), owners of the New York Stock Exchange (NYSE), so there’s good reason to be excited. ICE has also partnered with Microsoft, Starbucks, and Boston Consulting Group.

With the SEC’s recent denial of numerous Bitcoin ETFs, the hope is that Bakkt will introduce a product which is appealing to institutional investors who have so far avoided the cryptocurrency markets, due to worries of manipulation or the lack of trustworthy custody options.

Bakkt Wants Institutional Investors
Bakkt has been touted as a potential onramp for institutional money. The company themselves revealed in a tweet this week that it is “designed to serve as a scalable on-ramp for institutional, merchant, and consumer participation in digital assets by promoting greater efficiency, security, and utility.” But are these pledges enough to attract investors who have so far steered clear of the cryptocurrency markets? Many believe that some institutional investors have already quietly entered the cryptocurrency markets, but can the NYSE owners bring them in droves?

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Bitcoin ETF from Cboe Will Not Be Approved, Says Licensed Digital Asset Investment Firm

Whitepaper Research

By Greg Adams from Blokt.com

Bryan Courchesne, the managing director of Digital Asset Investment Management, spoke with [blokt] about the Cboe Bitcoin ETF. Courchesne thinks that the SEC will not approve the ETF due to their concerns over manipulation in the underlying Bitcoin market.

The Cboe Bitcoin ETF filing, of which the SEC recently postponed a decision on approval, has been a key talking point in the Bitcoin and cryptocurrency communities since Cboe filed its application in June. The current deadline for approval by the SEC is September 30, 2018, which can be further extended to February next year, by which point the filing must be approved or denied.

ETF Talk

Many Bitcoin investors and traders appear to believe that the SEC’s decision on this ETF could make or break Bitcoin, at least in the short-term. A common narrative is that an ETF approval would lead to a trend reversal for Bitcoin, sending it back into a bull market like the one seen in the second half of 2017. Another belief is that the denial of the ETF will lead to further drops and yearly lows for Bitcoin, with a long road to recovery ahead.

[blokt] spoke with Bryan Courchesne, the managing director of Digital Asset Investment Management, who helped to shed some light on Cboe’s ETF and provide some realistic expectations of the outcome. Digital Asset Investment Management is a registered investment adviser for digital assets. The first of its kind, DAIM is properly licensed to advise and manage digital assets in accordance to the highest standards, with the capabilities of placing digital assets into brokerage and retirement accounts. We’ve outlined the highlights of our discussion with Courchesne below.

The Cboe ETF Would Be Out of Reach for Most Retail Investors
Cboe’s proposal indicates an ETF of which each share is made up of 25 BTC with an assumed price of $8000 per BTC. This puts the total cost per share at $200,000. The ETF will only be purchasable in whole units, making this $200k price far out of reach of the majority of retail investors.

Read the rest of this article at Blokt!

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