The entry of institutions in the cryptocurrency industry has been seen as a marker in the quest for mainstream adoption. Several proponents of the industry have come forward to support ventures such as Bakkt and Ameritrade, claiming that the entry of their products will only shed a better light on the industry.
Recently, Bakkt organized its institutional summit at the New York Stock Exchange [NYSE], an event which was aimed at being a decisive meeting to decide the future of crypto, as well as Bakkt’s digital asset products. The summit was covered by Sam Doctor, Fundstrat’s Quant strategist, who tweeted,
“We think #Bakkt could be a huge catalyst for institutional participation in the #crypto market.”
The Fundstrat report stated that Bakkt is expected to launch late in the current quarter, following the test launch on 22nd July. The release also claimed that there is a great deal of institutional anticipation around the planned launch of the service-custody, compliance payments and physically settled daily and monthly futures contracts in partnership with its parent company, the Intercontinental Exchange. According to Fundstrat,
“CFTC commissioner Dawn Stump discussed the CFTC’s derivatives regulatory and enforcement duty and its role sharing market perspectives with the Financial Stability Oversight Council [FSOC]. There isn’t a cryptocurrency that could threaten financial stability yet.”
During the summit, Ari Paul, CIO of BlockTower Capital, placed his belief in the retail sector, adding that retail adoption will be enormous once a ‘killer app’ makes cryptocurrency on-ramps safe, reliable and as easy to use as mainstream services like PayPal.
The CIO also said that institutions should not dismiss cryptocurrencies too easily, even during tumultuous times. According to the Fundstrat report, investors should jump into the asset pool soon as it has low to almost no correlation to traditional assets.
Ari Paul was also in the news recently when he spoke about ways to defend the Bitcoin blockchain from separate attack vectors. He explained,
“Many stakeholders are incentivized to mine as “white knights” at a temporary loss to reach the next difficulty adjustment. The incentives are already there and probably no preparation necessary. To ensure a smooth remedy, we’d want major stakeholders like exchanges and service providers to have a plan to quickly put sufficient hash power to work.”