Intercontinental Exchange’s Bakkt (New York Exchange’s parent company) has made a huge announcement on New Year’s eve. The CEO of Bakkt, Kelly Loeffler stated on her official medium blog that Bakkt has successfully completed its first funding round.
The firms that invested are hailed to be prominent players in both the financial and cryptocurrency space. They are Horizons Ventures, Galaxy Digital, Boston Consulting Group, Microsoft’s venture capital arm, Pantera Capital, PayU, CMT Digital, Eagle Seven, Goldfinch Partners, Alan Howard, M12, Naspers, Protocol Ventures and Intercontinental Exchange itself. In this round of funding, Bakkt has raised over $182.5 million.
The CEO stated:
“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.”
She further stated that the team at Bakkt has been working with the Commodity Futures Trading Commission [CFTC] a.k.a sister branch of the U.S Securities and Exchange Commission. Here, the CEO affirms that the physically delivered and warehoused Bitcoin will be launched with regulatory approval, and it is going to “amplify the voice of U.S authorities as the digital asset market evolves globally.”
“We have filed our applications and the timing for approval is now based on the regulatory review process […] Clearing firms and customers have continued to join us as we work toward CFTC approval. We made great progress in December, and we’ll continue to onboard customers as we await the ‘green light”
The cryptoverse reacted this news with most commenting negatively while some replying to it with a positive sentiment.
Richard Heart, a Twitterati said:
“Uh. I remember back when you had to have customers before insane valuation. Congrats I guess. Funding is debt btw, not an asset.”
Amar Chhetri, another Twitterati said:
“Congrats!! guys, and Happy New Year. Our biggest expectation from you is to fulfill your promise on the exact date…”
“Or how about they never launch it and stay the hell out of the way of the real bitcoiners? Just a thought. “We don’t need no stinkin’ Bakktes” – From The bandits in “Treasure of Sierra Madre”.”
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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