In the final days of 2018, the cryptocurrency world buzzed with anticipation as Bakkt, a platform backed by the New York Stock Exchange (NYSE) parent company Intercontinental Exchange (ICE), announced it had raised $182.5 million in its first funding round. Investors included Microsoft’s venture arm, Li Ka-shing’s Horizons Ventures, and Naspers—the largest shareholder in Tencent. This high-profile backing ignited hopes that Bakkt’s launch could signal the end of the ongoing crypto bear market.
Often compared to STOs and ETFs, Bakkt was hailed as a potential "savior" for the struggling digital asset industry—promising institutional legitimacy, increased liquidity, and renewed investor confidence.
But nearly a decade on, the reality has proven more complex than the initial hype.
Why Was Bakkt So Highly Anticipated?
Institutional Backing and Market Infrastructure
Bakkt’s appeal stemmed largely from its powerful parent organization—ICE, one of the most respected names in traditional finance. With a proven track record in managing regulated financial markets, ICE brought credibility and infrastructure that few crypto startups could match.
As Fortune magazine noted, ICE’s entry into cryptocurrency was no small event. It represented a major institutional player stepping into a space long dominated by decentralized, unregulated entities.
Bakkt’s official website emphasized this strength:
“Leveraging ICE’s proven financial market infrastructure and technology, Bakkt’s global platform will connect investors, merchants, and consumers—making digital assets easier, more accessible, and lower-cost to use.”
Unlike crypto ETFs, which require approval from the U.S. Securities and Exchange Commission (SEC), Bakkt’s bitcoin futures products fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC). This regulatory distinction allowed it to bypass some of the most significant hurdles faced by other financial innovations in the space.
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Physical Settlement: A Game-Changing Feature
What set Bakkt apart was its plan to offer daily physically settled bitcoin futures contracts. Unlike cash-settled instruments offered by CME or CBOE—where profits are paid in fiat—Bakkt’s model meant traders would receive actual bitcoin upon settlement.
This feature had profound implications:
- It created real demand for spot bitcoin.
- It encouraged long-term holding by institutions.
- It reduced circulating supply—similar in effect to Bitcoin’s halving events.
Mike Novogratz, founder of Galaxy Digital, captured the sentiment well:
“The next step requires trusted custody solutions and clearer regulation. Without these, institutions won’t commit even $1,000.”
Many analysts believed Bakkt could unlock billions in institutional capital, potentially triggering a new bull cycle.
Beihang University professor and blockchain expert Wei-Der Tsai went further, calling Bakkt’s formation “a historic milestone” signaling full acceptance of digital assets by the U.S. financial system.
Repeated Delays: The Cracks Begin to Show
Despite the optimism, skepticism remained.
Jake Chervinsky, a prominent crypto attorney at Akerman LLP, warned against premature excitement. He argued that declaring Bakkt a market savior was premature—especially given the regulatory uncertainty still surrounding it.
Regulatory Hurdles Still Loom
While ICE can self-certify futures contracts under CFTC rules, the commission retains oversight authority. If the CFTC determines a product poses systemic risk or lacks market integrity, it can block its launch.
Bakkt acknowledged this in its statements:
“We operate as an open and neutral platform… committed to innovation within appropriate regulatory frameworks.”
That means regulation still holds the keys—and U.S. regulators have historically moved slowly when it comes to crypto.
A Pattern of Postponements
Originally slated for November 2018, Bakkt delayed its launch due to “high interest volume” and operational complexity. Then came another postponement—to January 24, 2019.
But just weeks later, a new announcement surfaced:
“Following consultation with the CFTC, ICE Futures expects to provide an updated timeline for Bakkt Bitcoin (USD) Daily Futures contracts in early 2019.”
Compounding the issue was the partial U.S. government shutdown—now in its 13th day—which halted CFTC operations and cast further doubt on approval timelines.
Market reaction? Underwhelming. Within 48 hours of the funding news, Bitcoin dipped to $3,709—one of its lowest levels in seven days—suggesting investor fatigue with promises unfulfilled.
Can Bakkt Still Be the Savior?
For an industry desperate for good news—from STOs to ETFs—every new development is scrutinized for signs of recovery. But Bakkt faces deeper structural challenges beyond regulation.
Competition with Spot Markets
Critics argue that Bakkt isn’t really about futures—it’s about capturing spot market revenue under a regulated guise. By offering physical delivery, it competes directly with existing exchanges like Coinbase or Kraken.
Moreover, liquidity in spot markets has been declining for years. Even if Bakkt launches successfully, will there be enough volume to move the needle?
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The Rise of Derivatives Platforms
Interestingly, while spot markets stagnate, derivatives have flourished.
- BitMEX dominates trading volume despite offering only futures.
- OKX launched perpetual contracts in December 2018.
- Huobi introduced Huobi DM, focusing exclusively on digital derivatives.
New players continue entering the space, drawn by growing demand for hedging tools in volatile markets.
In a prolonged bear market, futures trading may be the only lifeline for many investors seeking profit or protection.
Frequently Asked Questions (FAQ)
Q: Did Bakkt ever launch successfully?
A: Yes—after multiple delays, Bakkt finally launched physically settled bitcoin futures in September 2019. While adoption has been slower than expected, it remains operational and has expanded into custody and consumer payment solutions.
Q: Does Bakkt control Bitcoin supply?
A: Not directly. However, by enabling institutions to hold actual bitcoin through regulated futures, it may indirectly reduce circulating supply—potentially influencing price over time.
Q: Is Bakkt still relevant in 2025?
A: While its impact hasn’t matched early hype, Bakkt played a key role in legitimizing crypto for traditional finance. Its infrastructure paved the way for later innovations like spot ETFs approved in 2024.
Q: How does Bakkt differ from CME Bitcoin futures?
A: CME offers cash-settled monthly futures. Bakkt provides daily physically settled contracts, meaning buyers receive real bitcoin—not just cash payouts based on price changes.
Q: Why did major partners like Starbucks step back?
A: Starbucks was initially involved in exploring payment use cases. However, focus shifted to launching core trading infrastructure first. Consumer applications were deprioritized amid regulatory delays.
Q: Can Bakkt trigger a bull market?
A: Alone? Unlikely. But as part of broader institutional adoption—including custody solutions and clearer regulation—it contributes to long-term market maturation.
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Final Thoughts
Bakkt was never going to single-handedly end a bear market. But its journey reflects a larger truth: the path to mainstream crypto adoption is slow, complex, and regulation-dependent.
It wasn’t the instant “救世主” (savior) many hoped for—but perhaps a necessary step toward building trust, infrastructure, and access for institutional capital.
Today’s landscape looks different. Spot ETFs are approved. Major banks offer crypto services. And platforms like OKX provide advanced tools for both retail and institutional traders.
The dream Bakkt helped ignite? It's still alive—just realized in ways few predicted back in 2018.
Core Keywords: Bakkt, Bitcoin futures, institutional adoption, physically settled futures, CFTC regulation, cryptocurrency market recovery, digital asset infrastructure