Many people have different opinions regarding the Bakkt Bitcoin futures. New information has confirmed these contracts don’t exactly work as advertised.

Unlike what many assume, these vehicles are not fully backed by physical Bitcoin.

That is a rather unusual development for a product that is designed to pride itself upon being backed by physical BTC.

Bakkt has seemingly labeled their Bitcoin futures product as something it isn’t, or at least not entirely.

With over one-third of the futures being backed by fiat currency or treasuries, this product isn’t exactly unique.

In fact, one might argue it looks very similar to what CME and CBOE are offering, up to a certain extent. 

Even though Bakkt continues to note higher volumes on a regular basis, these new developments cast a dark shadow over the entire business model. 

It also confirms how Bakkt is still more appealing to investors compared to its competitors. 

Bakkt CEO Kelly Loeffler indicated last year how the Bitcoin futures would not serve to create a paper claim on a real asset.

However, the fact that 37% of their value is not backed by Bitcoin seems to contradict that story rather significantly. 

There is also a question as to how appealing the “physical delivery” of these contracts truly is.

Those numbers appear to be disappointingly low, albeit that is not necessarily problematic. 

Despite Bakkt trying to be unique on the market, it is evident that the company is still relying on traditional methods.

Image(s): Shutterstock.com

The post The Bakkt Bitcoin Futures Aren’t What They Seem to be appeared first on NullTX.

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