As a result of the Series A funding round, Bakkt’s crypto platform is estimated at about $ 740 million, but investors began to discuss the future level of profitability and risks.
Sources close to the project told The Block that ICE has sold up to 25% of its cryptocurrency arm to outside investors such as Microsoft, Starbucks, Galaxy and Pantera. They have now begun to speculate about how Bakkt can achieve projected profitability levels with such a high valuation, existing regulatory barriers and a five-month launch delay..
The estimated fee for a contract on the platform should be only $ 0.5, which is equated by many to 1 basis point, which is several times lower current market conditions. In order to earn enough on commissions, Bakkt will need quite impressive volumes, and once launched, the system should work flawlessly. Therefore, the company has to make a lot of efforts to meet the expectations of investors..
In addition, the project has still not received the approval of the American regulator for the launch of bitcoin futures.. The delay has already led to two postponements of the platform launch date, and now the management has not calls even the approximate start date.
However, investors are not worried about their funds, since the agreement with ICE provides for the possibility of returning the capital invested under certain conditions. Therefore, in the event of a long delay, they will be able to take advantage of this opportunity..
Although some do not exclude the possibility that Bakkt may organize another fundraiser in the near future, but then investors will become more interested in future prospects, as there are cheaper alternatives on the market.
Now many major players The crypto market decided to take a break to reconsider its position and wait for the decision of the regulators on new cryptocurrency products. One example is the CBOE, which decided not to add new bitcoin futures to the market in March..
text: Ivan Malichenko, photo: Shutterstock
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