DeutschAnyone who brings a new financial product to the market with such a large media echo must expect negative headlines if the hoped-for early success fails to materialize at the Bakkt launch. The correctness of this assessment is currently being confirmed from their own experience by the company Bakkt from the USA. Due to the repeated postponement in connection with reservations or too slow examination by the responsible financial supervisory authority, there had been some speculation in recent months that Bakkt could even put its plans for futures on Bitcoin completely on ice. Now, since the end of September, the time has finally come: The futures contracts on the most important cryptocurrency could finally be traded. However, the dilemma for the provider is the previously recognizable restraint. Many analysts had expected enormous demand for the BTC futures. But as so often, things turned out differently.
Bakkt Launch: False Expectations or Failed Start of Trading?
The new product from Bakkt has not been able to confirm exactly this expectation, at least for the time being. Current reports speak of a sales volume worth a total of only 60 Bitcoin, which is without question dramatically below the predicted trading volume. As so often, many market observers tend to declare Bitcoin Futures a complete failure already. But is this assessment correct? There are quite contrary opinions from some analysts. Rather, the mistake could have been the actual expectation. The fact that the price of Bitcoin would experience a meteoric rise after the introduction of Bakkt Futures was ultimately not as realistic as it may have seemed to some self-proclaimed specialists for a long time. The delays in particular could be a reason for the initial and continuing difficulties.
Not the Perfect Time for the Market Launch
On closer inspection, how sensible was it to expect a veritable “run” of institutional investors on the new product? If you leave aside the particularly euphoric predictions, nothing really dramatic has happened so far. Equating the restraint with a general failure is at least too negative an analysis for the time being. Many a product on the crypto market took a while until the interest of potential investors finally increased. In addition, there is an overarching difficult time environment for the launch of Bitcoin Futures. Factually, the format represents an innovation, even if this may not be immediately apparent to many laypersons. The special feature, namely, is that transactions here are not carried out in US dollars, as with comparable offers, but in BTC. This is one of the reasons that Bakkt itself cites as the trigger for the long lead time.
Futures Investments also Require Time and Patience
This feature is explicitly the unique selling point compared to previously available futures transactions – in addition to particularly high security standards in the context of state regulatory requirements on the US market. In addition, Bakkt can boast some renowned partners such as Microsoft in the competition. The criticism that the trading volume of the Bakkt platform is currently too low could be invalidated by a timely increase in interest. Incidentally, why the initial efforts should not be overestimated becomes obvious when looking at other, more positive analyses from recent weeks. Many crypto experts see the Bakkt project as a kind of “opener” that could finally lead to greater mainstream confidence in the global crypto market.
Experts Disagree in Acute and Long-Term Forecasts
Such a gain in confidence, as recently predicted by security professional and crypto pioneer John McAfee, among others, would fuel the market capitalization as a whole. This in turn automatically creates new opportunities for Bakkt customers who could take advantage of future trends. And the number of analysts who expect a rapid increase in performance these days does not differ significantly from the skeptics who wanted to declare the BTC futures a failure right at the beginning (or even earlier) with the Bakkt launch. And as the saying goes on the crypto market for years: Those declared dead live longer. It is possible that the futures of the US company will gradually develop from the bad market phase into a sought-after innovative crypto product.
Gradual Increase in Demand Thanks to the Advantages of Futures Realistic?
In many places, a successive increase in the BTC volume is expected. The fact that it is an institutional investment will probably make massive breakouts of the Bitcoin price upwards unlikely in the start-up phase. As possible reasons for a long-term success of the product, crypto experts not only mention the security. The fact that Bitcoin is experiencing a previously unprecedented centralization and scalability is also viewed positively by many insiders. As a new regulated market for institutions with crypto interest, it could ultimately ensure approval on the investor side. But only with patience and not acutely. And this could be the better way in the end. Because many a financial product that initially hit like the proverbial bomb later proved to be unsustainable in the long term. So Bakkt could be spot on in the long run with the assessment of its own opportunities.
to the current prices
