In a statement on Friday, Bakkt Holdings and VPC Impact Acquisition Holdings (VIH) announced that the Securities and Exchange Commission had approved their merger and that they could now go ahead with plans to operate as a single publicly listed company.
According to the businesses, a special meeting of VIH shareholders will be held on October 14 to consider whether or not to accept the merger. Exchange Bakkt, owned by Intercontinental Exchange, has been working on an IPO with VIH, a firm formed specifically for the aim of buying other companies (SPAC).
Bakkt Begins Trading Next Monday
New York Stock Exchange-listed crypto-platform Bakkt will begin trading on Monday as a public corporation, according to Intercontinental Exchange (ICE). The Intercontinental Exchange (the parent firm of the New York Stock Exchange) established Bakkt in 2018 as a crypto custodian, which means it keeps large investors’ Bitcoin in cold storage.
As a result, the business has transformed into a digital asset marketplace that provides a Bitcoin futures trading service, a mobile app that enables users to spend their Bitcoin on daily items in stores, and a Visa debit card, which Bakkt introduced in June. Bakkt has completed its merger with VPC Impact Acquisition Holdings, according to the NYSE, and will now trade under the ticker “BKKT” on the NYSE.
What is Bakkt?
Bakkt is primarily a Bitcoin custodial business that maintains a cold storage facility for digital currency. A significant quantity of bitcoin is being looked after by this service on behalf of institutions.
Intercontinental Exchange (ICE) owns Bakkt, the New York Stock Exchange’s holding business (NYSE). Bakkt futures are then available on the Intercontinental Exchange (ICE). Traders may place bets on whether the price of Bitcoin will rise or decrease using this market. All of the Bitcoin used as collateral for the transactions is safely held by Bakkt.
To put it another way, Bakkt manages Bitcoin on behalf of ICE, allowing institutional investors to speculate on it through futures trading. Institutions may now purchase and sell digital assets in a federally regulated environment in the United States, thanks to the partnership. In other words, they may enjoy the same simplicity, volume, and security on Bitcoin exchanges that they are used to.
Bakkt is different from other trading platforms in that it enables transactions to be paid in Bitcoin rather than cash. This implies that at the end of a transaction, traders get Bitcoin into their accounts. Bakkt stores all of this Bitcoin and keeps track of who owns what in a separate ledger, so there’s no need to keep moving Bitcoin around.