Bitcoin Futures and Bitcoin ETF Nod Allows For Institutional Investment
Come December 12, the Intercontinental Exchange (ICE) will list and allow trading of Bakkt Bitcoin (USD) Daily Futures Contract. This is after the exchange got the green lights from the U.S. Commodities Futures Trading Commission (CFTC). This Bitcoin Futures approval is huge for Bitcoin and the whole cryptocurrency space. Overly, it hints at what regulators think of digital assets and products. It also highlights shed light on whether they think Bitcoin futures and similar products are “safe” for ordinary investors. In the case of Bakkt Bitcoin Futures, settlement and delivery are through ICE’s Digital Asset Warehouse at Bakkt LLC. At the same time, all domination will be in USD with ICE Clear US, Inc clearing these futures contract.
Possible Bitcoin ETF Approval by SEC
Coincidentally, while the community was still digesting the effect and how the market is set to benefit following the announcement of Bakkt Bitcoin Futures, News began circulating that the SEC would allow Gemini’s Van Eck and SolidX Bitcoin ETF to roll out their product. Though there has been no affirmation of this “hot” rumor, it is said that several SEC commissioners including Elad Roisman, representatives from Van Eck, SolidX and the CBOE had a meeting to iron out the kinks around Van Eck Bitcoin ETF.
According to confident sources, the first ever Bitcoin ETF to ever launch will roll out because Van Eck and SolidX had resolved all issues identified by the regulator. Furthermore, Commissioner Kara Stein will step down in December once her term at the commission expires paving way for Allison Lee. She is a keen supporter of crypto. However, odds are the commission will likely approve the Bitcoin ETF in the window between Stein’s exit and Lee appointment. Therefore, it appears as if it’s more about timing not technical impediments preventing SEC’s approval. The team at the CBoE remains “resolute” that Van Eck Bitcoin ETF will get the nod.
What Bitcoin Futures and Bitcoin ETF mean
As we can see, this week has been overly bullish for Bitcoin. The approval of Bitcoin ETF together with the availability of Bitcoin Futures mean institutions can channel their funds into the market without worrying about market manipulation. The safety aspect will be because of regulatory involvement. On their part regulators are actively securing the interests of ordinary investors. Generally, the injection will benefit investors. But most importantly, volatility will decrease and as liquidity increase further stabilizing prices creating this beneficial loop of positivity the community has been yearning for.