Since the inception of the cryptocurrency market, major institutional firms have been holding off from investing in this space. One of the major reason for this being the manipulation and insecurity that prevails in this market. Steps are being taken by various organizations across the world regarding different frameworks for the cryptocurrency market so that acceptance of digital currencies increases across the financial space.
One of such organizations is Intercontinental Exchange (ICE), an operator of global exchanges. It was announced by the ICE back in the August that with the collaboration of various spearhead organizations of the world like BCG, Microsoft, Starbucks and others, it is going to launch a new company named “Bakkt” aimed at providing an open, secure, transparent and global ecosystem for digital assets across the financial market.
With the help of Bakkt, consumers will be able to sell, buy, store and spend digital currencies within a secure and transparent global ecosystem. It was stated by the Chief Executive Officer of Bakkt, Kelly Loeffler, in the official press release that:
Bakkt is designed to serve as a scalable on-ramp for institutional, merchant and consumer participation in digital assets by promoting greater efficiency, security and utility. We are collaborating to build an open platform that helps unlock the transformative potential of digital assets across global markets and commerce.
While some experts are suggesting that Bakkt will help digital currencies grow as a whole on a global level, some suggest that it will be even more beneficial than an exchange-traded fund (ETF) for the cryptos.
David Ghokhstein, who is a well-renowned entrepreneur, influencer and a crypto enthusiast, is of the view that Bakkt will certainly be more beneficial to bitcoin than an ETF.
The demand for an ETF is majorly driven by the institutional interest. As a result of an ETF, the acceptance of digital currencies on the institutional level will increase as a whole. As a consequence of this, more and more money will be pouring in the market of cryptocurrecies making it more stable on a bigger scale.
But as suggested by David, Bakkt will also play a positive role in increasing the acceptance across the financial space regarding cryptos. Upon inquiry by BlockPublisher concerning the increment of institutional acceptance across the crypto space as a result of Bakkt despite the prevalent manipulation, David stated that:
Yes, I believe so. The game changes with Bakkt in the picture.
All in all, it seems from the comments made by David that while the focus lies too much on a crypto-linked ETF, Bakkt might just be the thing that the crypto world needs right now for growth and acceptance a larger scale. As a result of Bakkt and the ease of usage that it provides, general public will be more involved in the game of digital currencies. Merchants and institutions across the globe can also benefit from this transparent and secure global ecosystem provided for cryptocurrencies. In a nutshell, it seems that in the future, Bakkt might just prove to be of equal importance for institutional acceptance as a crypto-linked exchange traded-fund.