[2019-01-01] Breaking: Bakkt Raises $182 Million, What it Means for the State

[cybersofts]

Breaking: Bakkt Raises $182 Million, What it Means for the State of Bitcoin Industry



Bakkt, a cryptocurrency exchange and liquidity provider created by the New York Stock Exchange’s parent company ICE has raised $182.5 million from a group of high profile investors and venture capital firms.

On December 31, on New Year’s Eve, Bakkt CEO Kelly Loeffler announced that Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Intercontinental Exchange, Microsoft’s venture capital arm, M12, Pantera Capital, PayU, the fintech arm of Naspers, and Protocol Ventures invested in the company, sharing the firm’s vision of driving institutional access for digital assets and providing support for merchants.

Loeffler said:

    Our work today is centered on driving institutional access for digital assets, along with merchant and consumer uses, and we’re already expanding on this vision, collaborating with great companies like Starbucks in these efforts.


Not All About the Bitcoin Price
As of December 31, the Bitcoin price remains down 80 percent from its all-time high at $19,500 and is en route to ending the year in the midst of a steep sell-off and a deep bear market.

But, according to Bakkt CEO Kelly Loeffler, 2018 has been the most active year for the Bitcoin and cryptocurrency industry, as it saw significant progress in strengthening the infrastructure supporting the asset class.

In December alone, Bakkt secured a $182 million investment from major venture capital and technology conglomerates, and ErisX, another U.S.-based cryptocurrency futures market, received $27.5 million from Nasdaq and Fidelity.



Bakkt is a portfolio company of Intercontinental Exchange (ICE), which also owns the New York Stock Exchange


While the value of crypto assets have dropped substantially since early 2018, Loffler emphasized that the price does not reflect the accomplishments of companies within the cryptocurrency ecosystem and the milestones the industry has achieved throughout the past 12 months.

She noted:

    Notably, 2018 was the most active year for crypto in its brief ten-year history. This was evidenced by rising investment in distributed ledger technology and digital assets, as well as by blockchain network metrics such as daily bitcoin transaction value and active addresses. Yet, these milestones tend to be overshadowed by the more narrow focus on bitcoin’s price, which has been seen by some, as a proxy for the potential of the technology.

As the institutional infrastructure for Bitcoin improves and the overall liquidity of crypto assets increases, the sector may see the inflow of more capital from institutional investors and high profile funds in the long run.

Several companies including Bakkt are actively working on various solutions to address the lack of merchant adoption of digital assets with partners in the likes of Starbucks and Microsoft.


Expect a Bakkt Delay
Some reports have suggested that the partial shutdown of the U.S. government could result in the delay of the Bakkt Bitcoin futures market launch on January 24.

In an official statement, Bakkt stated that the firm would provide an update in early 2019 on the intricacies of the firm’s plans in launching its Bitcoin futures market.

“Following consultation with the Commodity Futures Trading Commission, ICE Futures U.S., Inc. expects to provide an updated launch timeline in early 2019, for the trading, clearing and warehousing of the Bakkt Bitcoin (USD) Daily Futures Contract,” the firm said.


Reference: https://www.ccn.com/breaking-bakkt-raises-182-million-what-it-means-for-the-state-of-bitcoin-industry/

[Theb]

Any investment of a crypto company that aims to bring up institutional investors in the crypto industry is generally a good news for the market. With this big money pouring in for the industry's future we all know that prices right now are irrelevant for these kinds of companies with regards to their decision making. Even before this news came out I am still confident that the crypto industry has a future with all the regulations and investments taking place for the industry I know that this bear market is only a market cycle for us.

[squatter]

On December 31, on New Year’s Eve, Bakkt CEO Kelly Loeffler announced that Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Intercontinental Exchange, Microsoft’s venture capital arm, M12, Pantera Capital, PayU, the fintech arm of Naspers, and Protocol Ventures invested in the company, sharing the firm’s vision of driving institutional access for digital assets and providing support for merchants.

People have been expressing skepticism about Bakkt ever since the launch was delayed a while back. I take this as a sign that CFTC approval is likely and perhaps even imminent. That looks like a lot of interest from VC firms.

[rodskee]

Wow another good news for the community
That means bitcoin atill strong crypto currency
Well hope this kind of good news can help for the bitcoin recovery after a year of suffer of the holders

[stompix]

I don't think numbers mean anything in crypto these days...

For example, an almost unknown exchange that has no numbers no proof of any volume, based in Zimbabwe ha managed to raise 30 millions$ in an ICO and of course, if you check the news there is nothing about it in the last month.

As for Bakkt I wonder why they even went to the process of raising funds, they are owned by ICE, who posted more than 2 billion in net income in just a year.

With this big money pouring in for the industry's future we all know that prices right now are irrelevant for these kinds of companies with regards to their decision making.

Just a feeling but I'm willing to bet that the future they see for BTC is totally different from what we wish. 

[1Referee]

As for Bakkt I wonder why they even went to the process of raising funds, they are owned by ICE, who posted more than 2 billion in net income in just a year.

That's the way it goes. ICE has to deal with shareholders to even signal that they are interested in pumping capital in whatever project, which is why it's more favorable to risk investor capital than your own when it comes to new adventures, which is what Bakkt is. Considering that most of the shareholders of ICE very likely are narrow minded legacy players, they won't agree to anything of this nature.

On top of that, it's also an interesting way to measure the sentiment in a market, which has been pretty bad all year in crypto, so the amount they managed to raise is pretty solid, especially if you take into consideration that they don't have a working product yet.

Whenever Bakkt gets an approval to go live, we'll be flooded with entities doing the same and battle for their cut of the pie. At one point you don't even have to use an exchange anymore. You'll just buy whatever amount of Bitcoin you want through your banking portal. There is too much money to be made for banks to ignore it. It also helps adding legitimacy to the space.

[Theb]

With this big money pouring in for the industry's future we all know that prices right now are irrelevant for these kinds of companies with regards to their decision making.

Just a feeling but I'm willing to bet that the future they see for BTC is totally different from what we wish. 

I think we all know that by now even if they have other plans for this market I know it will affect the industry in a good way. With that big money pouring in solely for the purpose of increasing institutional investors in the market we know it will be good for the market. Not only that big money is inside the market but it can also increase the demand created by normal investors once they see that this big companies are participating in the market.

[stompix]

As for Bakkt I wonder why they even went to the process of raising funds, they are owned by ICE, who posted more than 2 billion in net income in just a year.

That's the way it goes. ICE has to deal with shareholders to even signal that they are interested in pumping capital in whatever project, which is why it's more favorable to risk investor capital than your own when it comes to new adventures, which is what Bakkt is. Considering that most of the shareholders of ICE very likely are narrow minded legacy players, they won't agree to anything of this nature.

This is exactly the part I don't like about this and about others like it in every field, be it even start-ups and IPO or whatever.
They paint it as a thing that can't fail, the new ultra mega extraordinary project that will earn you billions, but when it comes to putting the money upfront...even if they sit on billions....we have wonderful news..we're going to let you people invest in it.

It's like selling books on how to win at the lottery or betting.

@Theb
People said the same about CME, but the sentiment turned the opposite way in just a few months.
Those "investors" only care about money, and they will do anything for it, and this "anything" might come and bite us really really bad in the future.

[pixie85]

We shouldn't depend on Bakkt and ETF or await it like a savior. Bitcoin will bottom even without it. Maybe 3000 was that low price you were waiting for and missed it. Bakkt and ETF will happen sooner or later. Don't get to excited now because they can keep delaying it for many months and if you get to excited you will overreact when you hear bad news. I'm sure my coins will be worth more after the next halving and I know Wall Street money is already here buying the dips. Back to reality people!

[BitHodler]

We shouldn't depend on Bakkt and ETF or await it like a savior. Bitcoin will bottom even without it. Maybe 3000 was that low price you were waiting for and missed it. Bakkt and ETF will happen sooner or later. Don't get to excited now because they can keep delaying it for many months and if you get to excited you will overreact when you hear bad news. I'm sure my coins will be worth more after the next halving and I know Wall Street money is already here buying the dips. Back to reality people!

People initially didn't care much about Bakkt, but that changed the lower the price was. Suddenly people referred to Bakkt as something that could lift the price back up, which is quite an interesting shift.

As for wall street, most financial institutions have likely been doing the same thing for years here. Some people think they are in before wall street, but that's not entirely true.

They are busy building the tools and platforms for the rest to enter as well, and eventually they will. Institutions want to shake out those who may contribute to selling pressure on the way up, so it helps that the price tanked hard.

[figmentofmyass]

People initially didn't care much about Bakkt, but that changed the lower the price was. Suddenly people referred to Bakkt as something that could lift the price back up, which is quite an interesting shift.

i think that shift happened because people gave up their hopes about ETF approval. last summer, people were obsessing over which ETF would get approved. i think after the mass rejection by the SEC in late august, the reality sunk in that an ETF wasn't coming.

the ICE had announced bakkt earlier that same month. over time, bulls began channeling all their ETF hopes into bakkt, hoping it would pump the market.

[CryptoBry]

Right now, the market is still in the doldrums and can be looking for things or developments that can be providing the much-needed excitement and the launch of the famous BAKKT can be a very big positive factor to help the cryptocurrency market get back to its feet again...or this is what I am wishing to happen soon. It is good to note that BAKKT is being supported heavily by people and organizations who got the money and the influence in the market. With enormous financial backing, we are hoping that BAKKT can be that thing to finally connect institutional investors into the world of cryptocurrency.