The investment institution founded by Li Ka-shing invested in Bakkt, which attracted wide attention. Why should Li Ka-shing invest in the futures trading platform Bakkt? This needs to start with the significance of Bakkt to digital currency.
Digital currency Stock Exchange has always been at the top of the food chain in digital currency market, and the high income of mainstream exchanges is the most direct embodiment. However, due to the lack of supervision and other reasons, the safety and compliance of investment in digital currency have not been effectively guaranteed, which has greatly raised the user threshold and restricted the admission of more investors, especially institutional investors. The appearance of Bakkt is expected to break this situation.
Bakkt is a digital asset trading platform founded by ICE, the parent company of NYSE in new york Stock Exchange, which means that it has a hard background and is relatively easy to gain the trust of market investors. Once Bakkt futures are launched, investors need not worry about compliance and safety, which will surely attract more institutional investors to enter the digital currency market.
Moreover, unlike the bitcoin futures launched by CME of Chicago Mercantile Exchange and CBOE of Chicago Board Options Exchange, the bitcoin futures launched by Bakkt are futures products delivered in bitcoin, which will increase the liquidity of bitcoin spot to some extent and may push up the price of bitcoin.
Compared with other exchanges on the market at present, this kind of exchange has obvious advantages. If it can be successfully launched, its profitability must not be underestimated. As a businessman with a unique investment vision, Li Ka-shing will naturally not miss this investment opportunity.
As for whether Bakkt will drive Bitcoin to rise or even bring a bull market, the master thinks it is not that simple.
First of all, it is not known whether Bakkt's bitcoin futures can go online smoothly.
Secondly, even if Bakkt's bitcoin futures are successfully listed, it may be difficult to bring a bull market. If you want to start a bull market, you need a lot of incremental funds to enter the market. If Bakkt futures go online, because it is bitcoin spot delivery, it can really increase the liquidity of bitcoin and bring some incremental funds. However, due to the current environment, the amount of funds brought is limited, and there should be a phased increase, but it is difficult to start a bull market.
Moreover, even if institutional investors enter the market for profit, they are smarter than ordinary investors, and the market may be dominated by them. Therefore, this is not necessarily a good thing.