Bitcoin settled futures products are on the way.
ICE, the parent company of the NYSE announced that they are launching a new company called Bakkt.
The release can be found here:
https://www.coindesk.com/nyse-parent-ices-new-futures-contract-will-deliver-real-bitcoin/
Bakkt will offer the first federally regulated market for bitcoin where the contracts will be physically settled with actual bitcoin.
They are looking to launch as soon as November of this year.
Um, it's about time!
Some info:
The stated goal of ICE is to transform bitcoin into a trusted global currency with broad reach and usage.
Microsoft, Boston Consulting Group, and Starbucks are some of the partners in the new endeavor.
Starbucks even announced that they would create a conversion system where bitcoin can be immediately converted to dollars.
A way for people to use bitcoin to buy things from Starbucks.
This is a major push to boost bitcoin adoption.
Overall, this is very big news.
This will be the first time a futures product will be launched that is physically backed.
It also marks a major push to get retail stores using bitcoin.
It's a double whammy of good news!
(Source: https://www.coindesk.com/ice-exchange-unit-seeking-to-list-bitcoin-futures-etf/)
The physically backed futures contracts are a double edged sword.
On the one hand people have suggested that the current futures products have been used to manipulate bitcoin prices, though it is hard to see any direct link, considering they are cash settled.
Which basically means the futures contracts are merely a bet on the price of bitcoin, no bitcoin ever actually changes hands.
Though there is the argument that bad actors could manipulate the spot markets in order to make their futures contracts profitable.
Now with a physically backed futures contract, bitcoins will be deliverable on expiration of contracts.
That could potentially drive huge demand if institutional level investors deem that the ICE futures contracts are secure enough to warrant using them for exposure to bitcoin.
That would be one of the most secure ways for investors to gain bitcoin exposure in their portfolios.
My thoughts:
I think this is very good news for bitcoin overall.
It sounds like they are making a major push to get bitcoin mainstream, which should only help increase prices.
The physically settled futures contracts can be a blessing and a curse, we will see how they get used in the near future.
I feel more comfortable than ever buying bitcoin today, and it being worth more a year from now, than I have in a while.
Stay informed my friends.
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This is terrible. Fat Cats on Wall Street will manipulate price through Naked Shorting...like they do Silver and Gold. Bitcoin is toast. Good thing there are thousands of legitimate Block Chain based Crypto Currencies and business models to choose from...
That is a fear shared by many. The fear is that there will be more paper claims on an asset than there are actual assets. Basically diluting the supply. Which will negate one of the most appealing parts of bitcoin.
Slowly Slowly Slowly BTC is getting more legit 👍
You gotta be kidding me. So BTC below ten thousand dollars is cheap. What does that mean for STEEM?
...
Time to power up.
Yes, that is correct. Regarding steem, it may be, but the developers need to actually deliver on something before money will pile in.
Fair enough. So is this all just good faith? What's another good milestone for me to wait for?
When/if SMTs launch, it should drive real value for the steem currency. Just like ICOs did for ether. The question is when will SMTs launch? Your guess is as good as mine in that regard. If I had to ball park it, I'd say early 2019, but that is just a guess.
SMTs been coming in the 'next 3-6 months' since i joined Steemit.
Lets just face the music - Steem is an abandonware. Larimer moved on to EOS and since its launch Steem is an inferior chain that nobody will choose as their base protocol.
If you look at Steem's github, you will see that it's far from abandoned. I have been here since July of 2016 and I have seen all the developments first hand, steem will have its days in the sun.
By the way, inferior in what way and to which chain/chains?
A rising tide raises all boats, has been my experience.
Yes, that is mostly true. Though if bitcoin is going up for something that is bitcoin specific it may pull value from altcoins. We have seen that happen several times in the past few years. Generally though, bitcoin runs first, then altcoins follow shortly after.
That is indeed some awesome news
I thought so too. Though, Goldman Sachs decided to drop a report today saying they think Bitcoin will never recover.
FUD from GS so they can buy cheaper. There is no doubt in my mind at all that BTC will recover.
I think it will too. Though I think it will take more time than most expected.
Maybe next year, right? Or the year after.
I am thinking the next bullish face will likely start in early 2019. Though that is just my guess based on the similarities to what happened back in 2014 with that bearish period.
We should be mooning...
Yea, I am a bit surprised the news hasn't had more of a positive effect on the price thus far.
Can you please explain more about the settled futures how they are going to play impact on the prices
Allow me. So far no-one has answered your question. See my post below...
Thanks.