Bakkt’s Launch, CME Options Signal a Quickly Advancing Market, Despite SEC Chair and Continued ETF Delays
Although we at BitOoda have been living and breathing crypto for several years and are used to its ups and downs, we still shake our heads when we see a week in which the SEC Chair repeatedly disparaged the industry, while elsewhere new platforms launched and markets continued to evolve at a rapid pace.
SEC Chair Jay Clayton last Thursday commented that “we have to get to a place that we can be confident that [bitcoin] trading is better regulated.” Although those comments and Clayton’s continued statements indicating he is not ready to approve a bitcoin ETF undoubtedly contributed to VanEck and SolidX’s decision to withdraw their ETF proposal, Bitwise forged ahead and delivered an updated briefing to three SEC commissioners arguing that conditions are appropriate for bitcoin fund trading on a major exchange due to the efficiency of the spot market, institutional-grade custody options, and a growing futures market.
We share those thoughts as context for this week’s exciting news about Bakkt’s long-anticipated launch of physically-settled bitcoin futures, and the announcement that CME plans to offer bitcoin options to supplement its existing futures market. We previously wrote on the impact Bakkt will have on institutional digital asset engagement; with the launch officially here (trading began at 8pm EST Sunday night), we hail its launch as a huge step toward enabling greater institutional involvement in crypto and addressing many of the issues Clayton remains unconvinced are resolvable, including price volatility, transparency, and sufficient clearing and custody options.
As a reminder, BitOoda (Ooda Commodities, LLC) is an NFA-registered Introducing Broker, that is set up with ICE Futures U.S. to compliantly broker ‘block trades’ via ICEBlock. Please reach out to firstname.lastname@example.org to discuss engagements on Bakkt’s new platform.