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It is no secret that 2018 was a very bad year for cryptocurrencies, at least with regard to prices and market capitalization. However, in its brightest moments, this year has managed to set the stage for some very important events that should make 2019 very successful and profitable. Two things have attracted the most attention, both of which were to occur in 2018, only to be moved to the beginning of 2019. These two are the decision of the USCO bitcoin by the US SEC and the launch of Bakkt.
What are Bakkt and Bitcoin ETFs and why are they important?
Let's start with Bakkt first. Bakkt Exchange is a company that will be launched at the beginning of 2019. It is a cryptocurrency platform offering a large number of services, including deposit and trading. However, there is another thing that makes Bakkt special, and this is the fact that the exchange itself is a product of the same company that created the New York Stock Exchange.
In addition, Bakkt will be supported by some very influential names, such as Microsoft, BCG and even Starbucks, just to name a few. In addition, Bakkt will support cryptographic conversions. Starbucks will actually be one of the companies that volunteered to test the system, as users will be able to convert cryptography to dollars that can be used in Starbucks.
The Bakkt exchange has enormous potential to bring cryptocurrencies a step forward towards mass adoption, but also to show institutional investors that working with them is safe and profitable.
When it comes to Bitcoin ETFs, on the other hand, they are another way to get institutions interested in cryptocurrencies. Through ETFs, institutions will be able to monitor the performance of a given asset without actually owning it. In this way, the risk of possessing the crypto – a currency they fear may have no value – is eliminated, as they would indirectly come into contact with cryptocurrencies.
In this way, they will also be able to keep their distance from scammers, price volatility, hacking attacks and more. The process is overall more convenient and safer, and may be the first step in convincing institutional investors to actually invest in digital currencies and make space much more stable. All that is left now is that the US SEC decides and approves the applications of Bitcoin's ETF, a decision that was taken on February 27, 2019.
Can Bakkt and Bitcoin ETF make the difference for crypts?
Although it is not possible to accurately predict the future and say with certainty, Bakkt and BTC ETFs will likely have a huge impact on the cryptic world. Institutional investors have decades of experience with low value assets and the problem is not losing value due to volatility.
The problem they have is security, since the possibility of stealing their assets is what annoys them the most. This is a big problem for companies that regularly invest billions of dollars. Because of this, he would prefer to lose the opportunity to make money, so run the risk of losing their funds.
Bakkt and Bitcoin ETFs will bring security in their own way and encourage investors to join. This will be a big change, which probably will not have immediate consequences on the price of the crypt. However, over time, the market will achieve higher stability and security levels for this very reason, which is why the community is so enthusiastic about these events.
As a direct consequence, encrypted adoption will follow. Slowly at the beginning and faster after a while, until the cryptocurrencies have reached the mainstream.
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Disclaimer: this article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and / or its affiliates, employees, writers and subcontractors are cryptocurrency investors and from time to time may or may not hold stakes in some of the coins or tokens they cover. Please conduct your own in-depth research before investing in any cryptocurrency and read our full disclaimer.
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