The Bakkt platform announced a few days ago that it completed its first funding round gathering $182.5 million. The company is going to offer Bitcoin futures contracts as soon as the first quarter of 2019. The main difference with other futures contracts is the fact that it will be Bitcoin-settled rather than cash-settled.
Bakkt Raises $182.5 Million
In a recent blog post uploaded by Kelly Loeffler, the CEO of Bakkt, the company announced that they have completed their first round of funding of $182.5 million. According to Loeffler, 12 partners and investors that believe in the future of cryptocurrencies participated from the funding round.
Some of the companies involved in the funding round were Galaxy Digital, Microsoft’s venture capital arm, Pantera Capital, and PayU, among others.
The company is working in order to create infrastructure related to virtual currencies. Bakkt wants to offer the first institutional grade regulated exchange, clearing and warehousing services for physical delivery and storage.
Kelly Loeffler commented about it:
“At Bakkt, we’re focused on the work required, both near- and long-term, to evolve the applications for digital assets. Market quality, regulation, scale, security and utility are critical for establishing a strong foundation where innovation can flourish. Our first step is to establish the trust and infrastructure that builds confidence and grows participation at the institutional and merchant level.”
Bakkt’s platform is one of the most positive announcements that will be made in 2019. This will allow investors that were not able to enter the market to participate in it. They will not have to be worried about how they manage their assets or how to store their funds.
This and the approval of the first Bitcoin ETF could be very positive for the whole industry in 2019. However, it is not confirmed that a Bitcoin ETF is going to be approved. The U.S. Securities and Exchange Commission (SEC) must provide an answer on February 27, 2019.
Once the infrastructure to receive institutions is deployed, it will be easy for the space to continue growing. Indeed, regulatory agencies will only have to improve the regulatory environment and create good legal frameworks around virtual currencies and blockchain technology.
Bitcoin is expected to have a good year ahead and Bakkt will be a key development in the space.