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Bakkt Launch Postponed Again and an Update To Be Provided in Early 2019

A week ago, Ethereum World News had notified the crypto community that the launch of Bakkt might be postponed for a second time due to delays getting the necessary approvals to launch by the 24th of January. In the report, we had explored how the Commodity Futures Trading Commission (CFTC) might need extra time to process Bakkt’s application for an exemption to its custody solution for Bitcoin.

CFTC regulations require that customer funds be held by a bank, trust company or futures commission merchant (FCM). In the case of Bakkt, they will be storing BTC in their own warehouse on behalf of their clients.

Confirmation from ICE that the Launch Will Be Postponed

Earlier today, ICE (the parent company of Bakkt) published a notice on its website explaining that the earlier mentioned January 24th launch date of Bakkt will have to be amended. The publication went on to add that they will provide an updated launch timeline in early 2019.

Following consultation with the Commodity Futures Trading Commission, ICE Futures U.S., Inc. expects to provide
an updated launch timeline in early 2019, for the trading, clearing and warehousing of the Bakkt Bitcoin (USD) Daily Futures Contract.
The launch had previously been set for January 24, 2019, but will be amended pursuant to the CFTC’s process and timeline.

Other Possible Factors Contributing to the Delay

The United States government is currently going through what is known as ‘a government shutdown’ due to the 2019 budget impasse brought about by President Trump demanding funding for the border wall with Mexico. President Trump has demanded $5 Billion to be allocated to the Department of Homeland Security that will proceed in building the wall. The ongoing shutdown has resulted in key government functions being halted as well as federal employees going for a significant amount of time without pay.

The CFTC – being a government agency – has also been affected.

Bakkt Secures $182.5 million from 12 Partners and Investors

Bakkt’s CEO, Kelly Loeffler, announced via a Medium post that they had completed their first round of funding that raised $182.5 million from 12 partners and investors who believe in the future of digital assets.

The partners and investors include Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Intercontinental Exchange, Microsoft’s venture capital arm, M12, Pantera Capital, PayU, the fintech arm of Naspers, and Protocol Ventures.

Ms. Loeffler also explained their ongoing cooperation with the CFTC to get the necessary approvals.

Our team has been working closely with the Commodity Futures Trading Commission for the better part of 2018.

At an industry level, regulatory approval for physically delivered and warehoused bitcoin will establish and amplify the voice of U.S. authorities as the digital asset market evolves globally.

We have filed our applications and the timing for approval is now based on the regulatory review process.

What are your thoughts on the launch of Bakkt being postponed a second time? Please let us know in the comment section below. 

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

The post Bakkt Launch Postponed Again and an Update To Be Provided in Early 2019 appeared first on Ethereum World News.

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Did German Authorities Cause The Current Bitcoin (BTC) Crash By Selling Seized BTC?

News reaching Ethereum World News indicate that there was a mass liquidatin of seized cryptocurrencies by German Authorities in the last two months and starting on February 20th. The seize crypto included 1,312 Bitcoins (BTC), 1,399 Bitcoin Cash (BCH) coins, 1,312 Bitcoin Gold (BTG) coins and 220 Ethereum (ETH).

Investigating the date the sale of the cryptocurrencies was order by the judge, we find that Bitcoin was valued at $11,732 according to coinmarketcap.com. At that price, the amount of Bitcoin to be sold was valued at $15,392,384. Bitcoin Cash was valued at $1,530 on February 20th indicating the value of BCH to be sold was worth $2,140,470. Analyzing the Bitcoin Gold to be sold, this amount of coins was valued at $183,680 on the same date with the ETH to be sold, being worth $206,800.

Adding it all up, we find that the total value of the seized cryptocurrencies on that day in February, was $17,923,334 with BTC being 85.8% of this value.

Also looking at the charts from that day in February, one begins to see a series of downtrends beginning on the 20th of February. The report also adds that the sale took part in two months and in approximately 1,600 individual transactions. The authorities managed to raise approximately $14 Million from the sale of the cryptocurrencies.

Bitcoin Chart from 20th Feb

Now the big question is, can this amount of BTC being sold over time affect the crypto market?

The way the crypto-market behaves, is that any slight indication of panic selling can trigger a domino effect that might last for quite some time. Any additional FUD will most definitely cause continual depreciation in the crypto markets.

One also has to remember that there were reports of over $140 Million in BTC being sold by the Mt. Gox trustee back in late April. Therefore, if both sales of BTC were ongoing at the same time, then it is highly probable that their joint actions could have contributed to the decline that we are seeing today. The sale by the German authorities might have started the downtrend, with the Mt. Gox news pushing it further.

Disclaimer: This article is not meant to give financial advice. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

[Photo source, Bloomberg.com]