Category Archives: ICE

Auto Added by WPeMatico

Bakkt Physical Bitcoin Futures Finally Launches

After an entire year of regulatory delays and missed deadlines, the Bakkt physical Bitcoin futures have finally launched. Apparently Bakkt is already open for both institutional and retail traders.

Bakkt physical Bitcoin futures have been highly anticipated ever since being announced over a year ago. These are the first physical Bitcoin futures, meaning contracts are settled for actual Bitcoins, as opposed to the Bitcoin futures on the Chicago Mercantile Exchange (CME) which are settled for cash. Also, Bakkt has been built by the Intercontinental Exchange (ICE), which is the parent company of the biggest stock exchange in the world, the New York Stock Exchange (NYSE).

There was speculation that Bakkt could lead to a major Bitcoin rally, since the physical nature of the futures could increase Bitcoin demand. So far Bitcoin has dropped from $10,000 to $9,700 in the 24 hours since Bakkt has launched. That being said, volume is low on Bakkt since it is only the first day, and perhaps the true effect of Bakkt on the Bitcoin market remains to be seen.

 

BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Image Courtesy: Pixabay

The post Bakkt Physical Bitcoin Futures Finally Launches appeared first on BitcoinNews.com.

Bitcoin Records New 2019 High for Second Consecutive Month

Bitcoin Records New 2019 High for Second Consecutive Month

Exactly one month after Bitcoin surged by over 20% to record a new price high for the year, the world’s most popular cryptocurrency enjoyed yet another unexpected rally today to breach USD 5,800 in some markets to record a new 2019 high in price.

In less than 12 hours, Bitcoin rode through several important resistance lines from around USD 5,300 at yesterday’s close, reaching as high as USD 5,854 (CoinMarketCap) in Asian trading hours before settling down at the time of writing to USD 5,715, in afternoon European markets, just before North American markets open.

Along with Bitcoin, the entire top 20 in market capitalization also enjoyed huge gains save IOTA (which lost below 1% of its value), with all the other coins also recording significant climbs for the 7-day range. Bitcoin was among the largest winners, recording around 7% gains in the past 24 hours, although altcoins like Litecoin and Cosmos managed to outperform Bitcoin at 8% and 10% respectively.

There are no solid theories on what happened today, although most analysts believe that the momentum has been showing for a while, regardless of industry news. Yesterday, Intercontinental Exchange Inc, the owner of institutional crypto trading platform Bakkt, told Reuters that it took advantage of the bear market to buy crypto assets at a discount.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Bitcoin Records New 2019 High for Second Consecutive Month appeared first on BitcoinNews.com.

CFTC Commissioner Says Sheer Pace of Fintech Has Stalled Bakkt Type Approvals

CFTC Commissioner Says Sheer Pace of Fintech Has Stalled Bakkt Type Approvals

CFTC Commissioner Christopher Giancarlo believes that the current period of innovation makes it challenging to approve proposals like Bakkt.

The U.S. Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974, that regulates futures and options markets.

Bakkt had promised prospective clients it would request permission from the CFTC to provide the first Bitcoin futures that would be physically deliverable daily, as well as storing clients Bitcoin in a physical warehouse on their behalf. The CFTC suggested that Bakkt registers as a trust company to circumnavigate stalling compliancy issues.

With the news that the Intercontinental Exchange (ICE), the owners of the New York Stock Exchange, is now attempting to facilitate the launch of its delayed Bakkt platform by obtaining a New York cryptocurrency license, the complications that new crypto projects face are a sign of the times according to Giancarlo, who clarified the difficulties:

“The first is that we live in a period of exponential technological change. That is, the sheer speed of innovation has increased exponentially, both in terms of production of new models and products and their subsequent public adoption.”

Giancarlo makes it clear that the pace of change within the industry means that regulators simply can’t catch up with new innovations without what he calls “heightened technological literacy across leaders in business and government.”

However, he points out that cryptocurrency innovation could have saved the 2008 global financial crisis, commenting, “Today I want to take stock of the current state of blockchain technology and renew a focus on how it can impact – and improve – our markets,” adding:

“But imagine what a difference it would have made a decade ago on the eve of the financial crisis if regulators had access to the real-time trading ledgers of large Wall Street banks, rather than trying to assemble piecemeal data to recreate complex, individual trading portfolios.”

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Unsplash

The post CFTC Commissioner Says Sheer Pace of Fintech Has Stalled Bakkt Type Approvals appeared first on BitcoinNews.com.

Bakkt Gets Creative with NY Crypto License

Bakkt Gets Creative with NY Crypto License

The Intercontinental Exchange (ICE), owner of the New York Stock Exchange, is attempting to facilitate the launch of its delayed Bakkt platform by obtaining a New York cryptocurrency license to seemingly bring about a more favorable outcome, according to Bloomberg’s report.

The much-lauded physically delivered Bitcoin futures platform – Bakkt – which is expected to further the adoption of Bitcoin to both institutions and retail investors, has been delayed for five months, with currently no date set for launch, as CEO Kelly Loeffler hinted:

“While we’re not yet able to provide a launch date, we’re making solid progress in bringing the first physical delivery price discovery contracts for Bitcoin to the .S, where price formation will occur in federally regulated, transparent markets.”

The delay has been for the most part due to custody concerns from the Commodity Futures Trading Commission (CFTC) which considered the custody infrastructure currently in place to be inadequate. Moreover, the regulator’s rules require clearinghouses to deposit customer funds at a bank or trust company – none of which Bakkt is, according to the report. Although, the CFTC had earlier suggested Bakkt register as a trust company to circumnavigate the concern.

CFTC had granted Chicago Mercantile Exchange Inc (CME) and the Chicago Board Options Exchange (CBOE) self-certification based on the fact that they settled their futures contract in cash, unlike in the case of Bakkt where settlements will be in Bitcoin, which raised the initial concerns of custody given the nature of asset theft in the cryptocurrency industry. Moreover, the regulator alongside CME and CBOE agreed to significant enhancements to protect customers.

ICE hopes a New York crypto license will influence the regulator’s decision positively, given that the license grants the Bakkt platform permission from New York’s Department of Financial Services to hold tokens.

In the background, the Bakkt project continues to develop as it grows its workforce as well as acquire asset relevant to its development.

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Bakkt Gets Creative with NY Crypto License appeared first on BitcoinNews.com.

NYSE chairman Calls Bakkt a “Moonshot Bet”

Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange sees the eventual Bakkt launch as a “moonshot bet” according to its CEO and chairman of the NYSE, Jeff Sprecher.

Talking over the past few days, Sprecher says that he is optimistic that Bakkt will be worthwhile and sees ICE’s involvement as “different” claiming that the deal has “…been organized in a manner that is very different than the way ICE typically does businesses.”

Making the remarks at a conference call yesterday he suggested that there will be a launch this year, after earlier delays and the implications that it could be soon. “Bakkt has its own offices, its own management team, etc. They’re well along in building out an infrastructure that I think you’ll see launch later this year,” said ICE’s boss.

Bakkt, which will offer institutional investors bitcoin futures trading, should have gone live in January but was postponed partly due to the US government shutdown at the time. The claim is that Bakkt will provide custody and price discovery for bitcoin which will be free from market manipulation and fraud.

There is speculation that the move by NYSE could bring the long-awaited wave of institutional investment into the cryptocurrency space, thus rejuvenating the flagging market; a market which has seen some revitalization over the past 24 hours.

Scott Hill, ICE’s chief financial officer said that Bakkt-related expenses for the first quarter topped $20 million stating “Our investment in Bakkt will generate $20 million to $25 million of expense based upon the run rate in the first quarter.”

Sprecher said, by bringing in Starbucks and Microsoft the potential is for a “very valuable company” to be created.

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post NYSE chairman Calls Bakkt a “Moonshot Bet” appeared first on BitcoinNews.com.

Bakkt Announces $182.5 Million Funding Round, Launch Set for Early 2019

Bakkt Announces 2.5 Million Funding Round, Launch Set for Early 2019

In a blog post yesterday, institutional grade digital asset platform Bakkt announced the successful first seed funding round of USD 182 million.

According to the blog post, fourteen investors and partners were listed to have participated in this round, out of which 12 of them had raised the sum. Big players in the traditional finance and fintech industry were mentioned, to include Intercontinental Exchange, Goldfinch Partners, Boston Consulting Group, Microsoft’s Venture Capital arm and Pantera Capital.

The Bakkt project has for the latter part of 2018 been touted as the platform to finally make way for mainstream institutional investors to get into the cryptocurrency game. The blog reads: “Our work today is centered on driving institutional access for digital assets, along with merchant and consumer uses.” The project also revealed that they have expanded the vision to drive mainstream cryptocurrency adoption for the everyday user by extending their partnership to companies like Starbucks.

The announcement also included a current status of the project such as “working closely with the Commodity Futures Trading Commission for the better part of 2018” in order to obtain “regulatory approval for physically delivered and warehoused bitcoin.” They have also “filed applications and the timing for approval is now based on the regulatory review process.”

Another relevant angle the project will tackle while working through the 2019 objectives will also include a focus on “opportunities to provide new infrastructure, including the industry’s first institutional grade regulated exchange, clearing and warehousing services for physical delivery and storage,” reads the blog post.

The project has delayed its launch twice in a row as another official publication reveals that the updated launch timeline which was set for 24 January 2019 will be amended and set for early 2019, in line with CFTC’s process and timeline.

The blog post also revealed as many would agree, that 2018 was indeed an active year for cryptocurrency with Bitcoin at the center stage as volatility index peaked, as well as a notable increase in investment from venture capitals in distributed ledger technology and digital assets.

Many analysts and cryptocurrency enthusiasts have opined that the coming of the Bakkt will play a crucial role in restoring the market from the year-long bearish trend.

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Bakkt Announces $182.5 Million Funding Round, Launch Set for Early 2019 appeared first on BitcoinNews.com.

As Bakkt Looms, Wall Street Boss Says Bitcoin Here to Stay

As Bakkt Looms, Wall Street Boss Says Bitcoin Here to Stay

Jeff Sprecher, CEO of the NYSE’s parent company Intercontinental Exchange (ICE), has asserted that digital assets will survive, regardless of the market’s dips and dives as seen over the past weeks.

A firm backer of Bitcoin, Sprecher had announced that, with the help of technology partner Microsoft, ICE was planning to launch a new digital asset platform called Bakkt. Starbucks and Microsoft will be major partners of the much-anticipated platform Bakkt and are reportedly going to accept Bitcoin and other cryptocurrencies.

The excitement surrounding Bakkt is centered around its plans to launch physically-settled Bitcoin futures by January next year; recent market sentiment is thought to have postponed the launch, originally scheduled for late 2018.

Sprecher reflected on recent events in the market and Bitcoin’s current position: “Somehow Bitcoin has lived in a swamp and survived… There are thousands of other tokens that you could argue are better but yet Bitcoin continues to survive, thrive and attract attention… Often times in finance, it’s not about being the best — it turns out to be about being the broadest and the most commonly accepted and for whatever reason Bitcoin has become that.”

Despite SEC commissioner Hester Peirce declaring in a 24 November podcast that long-awaited ETF approvals are “definitely possible”, the SEC warns that these won’t be any time in the near future. Kelly Loeffer, Bakkt’s CEO and wife of the NYSE chairman, claims that Bakkt is creating its own opportunities for the future, stating:

“We’re creating that infrastructure that doesn’t exist today, which we think is a big opportunity for institutional investors to come in.”

As for the future, Nasdaq seems unfazed and retains a bullish optimism with its plans to launch Bitcoin futures in 2019 through its partnership with VanEck . Both Nasdaq and the NYSE forging ahead towards becoming cryptocurrency exchanges and Nasdaq’s CEO Adena Friedman asserted that over time the exchange giant could become a cryptocurrency exchange once “the sector matures”.

Clearly, major players are not simply waiting on the SEC for ETF game-changing thumbs up in 2019. New Year’s resolutions are already being made.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post As Bakkt Looms, Wall Street Boss Says Bitcoin Here to Stay appeared first on BitcoinNews.com.

Lawyer Claims Bakkt Can Bypass Approval for Physical Bitcoin Futures

Crypto lawyer Jake Chervinsky has determined that Bakkt does not need direct approval from the Commodity Futures Trading Commission (CFTC) to launch the physical Bitcoin futures, so it appears the launch date will proceed as scheduled.

The cryptocurrency markets are highly anticipating the launch of physical Bitcoin futures on Bakkt on 12 December 2018. It is a new cryptocurrency exchange which will be owned by the Intercontinental Exchange (ICE), the same organization that runs the New York Stock Exchange (NYSE).

14/ A designated contract market like ICE can file a self-certification submission as late as one business day before initial listing.

That means ICE technically doesn’t have to file Bakkt’s papers until Tuesday, December 11 for Bakkt to launch futures on Wednesday, December 12.

— Jake Chervinsky (@jchervinsky) November 6, 2018

According to Chervinsky, ICE is a CFTC certified designated contract market, allowing it to self-certify new futures offerings without any prior approval. ICE and Bakkt can submit the filing for physical Bitcoin futures as soon as one day before launch. Chervinsky says the CFTC will probably publish a press release about the futures when the self-certification occurs.

16/ Consider the process that CME & CBOE went through to get approval for their bitcoin futures last year.

Both of them ended up self-certifying, but only after *months* of negotiations with the CFTC & changes to their products.

The CFTC explains here: (https://t.co/B0tuugmPDx)

— Jake Chervinsky (@jchervinsky) November 6, 2018

However, if the CFTC disapproves of the physical Bitcoin futures, they could find some way to block them after launch. At this time, there is no evidence that this will happen otherwise, the controversy would have already been underway as seen when cash-settled Bitcoin futures were launched on the Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBoE). It took months of negotiations for CME and CBoE to reach an agreement with the CFTC, even though those exchanges can self-certify like Bakkt.

Bakkt CEO Kelly Loeffler indicates that the plans for the physical Bitcoin futures would be reviewed and approved by the CFTC before launch, probably to maintain 100% compliance with regulators and avoid problems in the future.

The reason the Bakkt physical Bitcoin futures are important is that they would allow institutional investors to buy Bitcoin in a safe and regulated way on major stock trading platforms. The futures settle the same day and investors receive actual Bitcoin in their accounts, unlike the cash settled futures in Chicago. Market demand for the physical Bitcoin futures is expected increase demand on Bitcoin spot markets, which could possibly lead to a major Bitcoin price increase.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Lawyer Claims Bakkt Can Bypass Approval for Physical Bitcoin Futures appeared first on BitcoinNews.com.

Physical Bitcoin Futures on Bakkt, Launch Set for December 12, 2018

The Intercontinental Exchange (ICE), which operates 6 clearinghouses and 12 stock exchanges including the New York Stock Exchange (NYSE), has announced that physical Bitcoin futures will go live on 12 December 2018 on their first crypto exchange, Bakkt. Physical Bitcoin futures could lead to a major rally driven by institutional investments.

The Bitcoin for physical Bitcoin futures will be held in the ICE Digital Asset Warehouse, which is ICE’s new cryptocurrency custodian. After an investor buys physical Bitcoin futures they will be settled the same day at 5 pm Eastern United States time, and delivered into the investor’s account at the Digital Asset Warehouse, after which point the investor can use the Bitcoin as they wish. This essentially provides a way for investors and traders to directly buy Bitcoin in a safe and regulated way, and the physical Bitcoin futures should be available on all stock trading platforms.

There are trillions of USD traded and invested on stock trading platforms, and the physical Bitcoin futures will open up Bitcoin to this immense pool of capital. To put this in perspective, Bitcoin’s market cap is USD 112 billion as of this writing on 23 October 2018, while the NYSE alone has a USD 18.5 trillion market cap, while globally the 60 major stock exchanges in the world have a market cap of USD 69 trillion. If even a small fraction of the money in stocks is diversified into Bitcoin, it could lead to the biggest Bitcoin rally in history.

There are already Bitcoin futures available on the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE), but the difference is these are cash settled futures and there are no bitcoins backing them. Therefore, money invested into the currently existing cash-settled futures does not increase spot demand for Bitcoin. The physical Bitcoin futures on Bakkt will directly increase spot demand for Bitcoin.

Other details about the Bakkt physical Bitcoin futures include the contract size which will be 1 bitcoin, the contract symbol will simply be BTC, and trading for each daily contract will occur from 8 pm to 6 pm Eastern United States time with a pre-open at 7:55 pm. Therefore, unlike Bitcoin spot exchanges, there will be a couple of hours each day where the market is closed for physical Bitcoin futures. The physical Bitcoin futures will be listed on the ICE Futures U.S. exchange, and the clearinghouse will be ICE Clear U.S.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Physical Bitcoin Futures on Bakkt, Launch Set for December 12, 2018 appeared first on BitcoinNews.com.

US Spent Over $5 Million on Blockchain Espionage in 2018

The United States government has spent USD 5.7 million with blockchain analytics firms so far in 2018 and this spending is accelerating, according to a report by digital currency publication Diar. Blockchain analytics firms are paid to conduct blockchain espionage, for criminal prosecution, taxes, and to ensure crypto regulations are being followed.

Bitcoin has a public blockchain ledger, where every transaction and address can be viewed by anyone. Firms like Chainalysis, Elliptic, CipherTrace, Scorechain, Coinfirm, Blockchain Intelligence Group, Bloq, and DMG Blockchain Solutions have developed advanced software which can attach identities to Bitcoin transactions, and transactions for other cryptocurrencies as well. The biggest customers of these firms are banks and financial institutions, who use blockchain analytics to ensure no breach of know your customer (KYC) or anti-money laundering (AML) policies. Collectively, the major blockchain analytics firms listed have received USD 28.8 million of contracts.

The Internal Revenue Service (IRS) is the biggest spender relative to other US government agencies at USD 2.19 million. The IRS is in charge of taxes in the United States, and it seems it is using the most advanced blockchain tracing technology people to build cases against crypto users who are not paying taxes. This despite members of the United States congress requesting that the IRS make its crypto tax guidelines clearer, since at this point the crypto tax code issued by the IRS is so unclear, prohibitive, and arduous that most crypto users don’t know how to pay crypto taxes.

The second biggest government spender is Immigrations and Customs Enforcement (ICE) at USD 1.54 million. This is probably because the ICE seizes drugs and other illegal goods at customs, and sometimes these packages are linked to crypto payments done over the darkweb.

The Federal Bureau of Investigations (FBI) takes third place in spending with USD 1.14 million, and this is probably related to crypto activity associated with criminal suspects and crime organizations. The Drug Enforcement Agency (DEA), in fifth position with USD 0.22 million, probably uses blockchain analytics firms for the same reasons the FBI does. The FBI and DEA can actually use blockchain analytics data in court for criminal prosecution.

The Securities and Exchange Commission (SEC) is at sixth place at USD 0.18 million. The SEC is cracking down hard on initial coin offerings (ICOs) and other fraudulent crypto-related securities, so it makes sense they’re spending some money on blockchain analytics. The Commodity Futures Trading Commission (CFTC) spends USD 0.12 million, likely to ensure exchanges are maintaining regulatory compliance, since Bitcoin trading is regulated under commodity laws.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post US Spent Over $5 Million on Blockchain Espionage in 2018 appeared first on BitcoinNews.com.