Bakkt's trading volume exceeded 100 times, the wolf of Wall Street is really coming

Remember the Bakkt that was so eye-catching and appetizing before, this time it is back on the stage.

After the long-awaited call came out, within 2 and a half hours after Bakkt launched, only 8 transactions were completed. This is far from the expectations of the "Wolf of Wall Street" in everyone's minds, and Bitcoin also ushered in a wave of sharp drops that day. Since then, the term Bakkt has been talked about in the currency circle, but this time, the wolf really came.

Since its launch at the end of September, Bakkt Bitcoin futures contract trading has gradually improved. The daily trading volume has exceeded 5,000 BTC in 24 hours, and the trading volume has increased by more than 100 times. Bakkt has once again entered the center of the stage.

1. Why is Bakkt always getting attention?

Superficial reasons:

Bakkt's aura is too dazzling, and he was born with a golden key. Jeff Sprecher, the husband of Bakkt's CEO Kelly Loeffler, is the founder and CEO of Intercontinental Exchange and the chairman of the New York Stock Exchange. The son of the New York Intercontinental Exchange (ICE), with its own plug-in.

Look at the other sons of the New York Intercontinental Exchange (ICE), the New York Stock Exchange, the Canadian Futures Exchange, the Paris Stock Exchange, the London International Financial Futures Exchange... each is a ruthless character. Therefore, in the cold winter, Bakkt easily won Li Ka-shing's Horizons Investment, Boston Consulting Group, Microsoft's venture capital department M12, and Payu under the South African newspaper group (Naspers), Tencent's largest shareholder.

deeper reason:

Most people think that Bakkt's attention is due to its wealth and power, so it is awesome. In fact, the value behind it is much higher than these external auras.

1. Bakkt's physical delivery

What is physical delivery? Physical delivery means that after the expiration of the futures contract, the delivery must be carried out in kind. For example, if you want to short Bitcoin, the delivery date is approaching, and the price of the currency rises sharply. At this time, you have to buy the same amount of Bitcoin at a high price in the market, and then deliver according to the price agreed in the contract. The advantages of this mode are as follows.

First, this mechanism means that it is more difficult for institutional funds to be short than to be long, because no matter whether you are long or short, you need to prepare Bitcoin physical deposits.

Second, the real value of Bitcoin is released. In the case of non-physical delivery, the supply chain of Bitcoin is infinitely enlarged, because it is possible to go long and short without Bitcoin itself. Once Bakkt's transaction volume explodes, a large number of real bitcoins need to be drawn from the bitcoin circulation for supply, which means that the reduction in real supply will continue to push up the price of bitcoin.

2. Institutions can enter the market in compliance with regulations

Think about a question first, why institutions are reluctant to enter the market, mainly because of compliance issues. Existing laws do not encourage large-scale participants such as investment banks to invest in assets such as Bitcoin that have not yet been approved by regulatory agencies. In China, any institution is directly prohibited from participating in Bitcoin.

And Bakkt can be described as a regular army with roots. The company operated by New York Intercontinental Exchange ICE has been approved by the US Commodity Futures Trading Commission (CFTC) and the New York Department of Financial Services (NYFDS). All investments made through Bakkt are legal and tax-compliant, and there is no hindrance to the entry and exit of funds. Thinking about the domestic ones, it is really too difficult, and the card will be frozen at every turn.

Why it is said that institutions enter the market is related to the environment in the United States. The U.S. financial market has been institutionalized, and retail funds are invested through institutions, so the main participants in the U.S. financial market are institutions.

Bitcoin ETF is the hope of many people in the currency circle, but every time it becomes a nightmare. Countless applications, numerous rejections by the SEC. The root cause of the rejection was the inability to confirm that Bitcoin's custody and market prices were not manipulated.

1. Hosting issues

SEC Chairman Jay Clayton reiterated the prerequisites for the approval of Bitcoin ETF: "Custody is the main problem, how does the SEC really know that investors own digital assets?" 

Bakkt's custody service is transparent and safe, meeting regulatory requirements for Bitcoin ETF custody.

2. Manipulation problems

Bakkt physical delivery futures can guarantee a strong correlation between futures prices and spot prices. Traders must have a sufficient number of physical Bitcoins to support transactions, thereby greatly reducing the possibility of market price manipulation. Once Bakkt's trading volume is large enough, its price will be recognized by the regulator and will become the price source of the index, which will be recognized by the SEC.

Once the Bitcoin ETF is passed, what it means, you can refer to the history of the gold ETF. After the gold ETF is passed, it will directly usher in a wave of bull market. Briefly explain why the adoption of Bitcoin ETF is so important.

To give a popular example:

When you buy a gold ETF, what you actually buy is not real gold, but the price index of gold. The gold ETF foundation invests in gold assets, so buying a gold ETF is equivalent to buying gold.

Once the Bitcoin ETF is approved, there is no need to buy real bitcoins, and you can invest in bitcoins without having to operate a complicated wallet. Of course, the most important thing is that once the Bitcoin ETF is officially launched, it will represent the legal status of Bitcoin, which will introduce a large amount of funds from the traditional financial market to Bitcoin.

1. China will gradually lose its dominance in the encryption world

The domestic turmoil has indeed hit various CX coins, air coins, and illegal exchanges. This is indeed conducive to purifying the dirty environment of the currency circle, but in terms of Bitcoin compliance, it lags far behind Wall Street in the United States.

2. Bad for exchanges and bad for platform coins

As Bakkt's trading volume continues to grow, it will have a greater impact on exchanges. The pricing power and liquidity of the encrypted world will be gradually eroded by Wall Street, and the value support of platform coins will also be eroded.

3. The influence of domestic regulation will be greatly weakened

According to the current development momentum of Bakkt, once it becomes the exchange with the most abundant liquidity of BTC, the impact of any domestic news and regulatory actions on the price of Bitcoin will be greatly reduced. In Jiang Zhuoer's words, in the end, he found out that he didn't take you to play anymore.

Changpeng Zhao believes that retail investors are still playing a key role in driving the price of Bitcoin to rise sharply, and have not seen institutions growing at a faster rate. The ratio is about 60%, about the same as last year.

Today, the demands of the elite in the field of cryptocurrency are already obvious. The infrastructure of the previous currency circle is far from meeting their requirements, because the current infrastructure really cannot support them in the field of encryption.

Bakkt is an important infrastructure for the elite to enter the cryptocurrency. From the investors of the Bakkt exchange, we can see how powerful the gold masters behind it are. It is not difficult to imagine that the elite may control most of the bitcoins in the future.

What does this mean to us? It means that the outlet for diaosi's counterattack is closing. Before the elite class takes control of the encrypted world, we must firmly grasp the few last trains. After all, this may be the last counterattack of ordinary people. opportunity.