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Bakkt trusted price discovery — What does it mean for the price of Bitcoin?

Bakkt trusted price discovery — What does it mean for the price of Bitcoin?

All Cryptocurrencies

by COINS NEWS 34 Views

Bakkt is set to launch in a couple of days, and as announced in their recent blog post, they will have their own *regulated* price discovery mechanism:

Uniquely, Bakkt bitcoin futures contracts will not rely upon unregulated spot markets for settlement prices, thus serving as a transparent price discovery mechanism for the benchmark price for bitcoin. The importance of this differentiator is only amplified by reports of significant manipulative spot market activity, and other concerns such as inconsistent anti-money-laundering policies and weak compliance controls.

Bakkt has highlighted the importance of price discovery on numerous occasions, such as in this (rather old) tweet:

We all know that the spot market is heavily manipulated, and that the prices are artificially inflated by Tether. (Tether themselves having acknowledged that 1. USDT is not backed 1:1 with USD; 2. They have made "loans" of USDT, so people have had USDT "in advance" without despositing a nickel; 3. They did "double-spend", in the sense that if they issued 1 USDT for $1, they would not necessarily keep this $1 in reserve, but could use it to buy crypto.)

So what is your opinion on what Bakkt trusted price formation will mean for the price of bitcoin? Are there chances that there will be a significant gap between the price of BTC for Bakkt futures contracts and the price on spot market, maybe in the magnitude of hundreds or even thousands of dollars?

submitted by /u/crypto_franiac
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