Bitcoinaficionado and Fundstrat cofounder Tom Lee says he’s more bullish on the crypto sector than ever, remarking that Bakkt’simminentlaunch could bring some much-needed legitimacy to the market.
Leetweetedthat Bakkt’s launch should bode well for the highly-lauded hopes of institutional involvement in the cryptocurrency industry.
Lee’s assertation that Bakkt’s launch may improve the trustworthiness of the industry will be music to many crypto enthusiasts’ ears. Institutionalinvolvementand the capital potential they bring has been aquasi-Holy Grailfor the cryptocurrency community for quite some time.
For years, stigma involving bitcoin’s connection to illicit activities such as money laundering, manipulation, andterrorismhas hindered the hopes of adoption. Now, it seems, thistired rhetoricis finally subsiding as retail and institutional investors alike begin to see the light .
Bakkt Is Almost Ready for Lift-Off
In just three days, Bakkt willlaunch, bringing with it a slew of institutional-grade features such as a bitcoin custodial service, as well as physically-settled BTC futures contracts. What’s more, Bakkt isliterallybacked by a plethora of companies, includingIntercontinental Exchange (ICE),Starbucks, and Microsoft.
Several weeks ago, the firm began readying for lift-off when it launched theBakkt Warehouse. This month, the firmopenedup deposits and withdrawals ahead of offering bitcoin futures trading.
While the BTC price has remained relativelylimpin the last few months, Bakkt’s entry is
Notably, its launch seems to be corresponding with the apex of an ostensibly bullish technical pattern. Raoul Pal was among the first to spot this formation, noting the wedge at the start of the month:
Grow up, Bitcoin!
However, despite improving sentiment among retail investors, institutions, and companies, there remains one tough nut to crack.
Speakingat Delivering Alpha this week, Securities and Exchange Commission Chairman Jay Clayton remarked upon bitcoin’sinfancy, suggesting that BTCwouldn’t hit a major exchangeanytime
“If [investors] think there’s the same rigor around that price discovery as there is on the Nasdaq or New York Stock Exchange … they are sorely mistaken … We have to get to a place where we can be confident that trading is better regulated. ”
This, however, is not all too surprising. Clayton has been hard on crypto in the past, pushing the manipulation rhetorictimeandtimeagain.
Regardless, Clayton can’t stop the crypto industry from continuing to infiltrate Wall Street. Bitcoinislisted – albeit in aderivative statenot subject to SEC regulations – on the Chicago Mercantile Exchange (CME).
Moreover, with the launch of Bakkt, institutional investors will finally have access to a regulated, physically-settled bitcoin futures product.
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