Intercontinental Exchange’s to-be-launched institutional trading platform Bakkt has earned a $740 million valuation after it raised over $180 million in funding last year, anonymous sources told cryptocurrency industry news outlet The Block on March 21.
Bakkt, which has yet to launch any investment products and continues to liaise with regulators, could increase its valuation even further should it raise further funds.
At the same time, the sources said questions among investors remained about their risk-return ratio, given Bakkt has yet to get the official go-ahead to launch and will operate on different terms from traditional platforms.
“From a cash-flow perspective, Bakkt will not be earning much based on their proposed contract fees, so they really need a lot of volume,” one source told The Block, adding:
“A lot of things will need to line up for investors to receive returns that they would typically expect for a Series A.”
As reported, United States regulator the Commodity Futures Trading Commission (CFTC) remains in talks to iron out kinks in Bakkt’s operations which have seen its debut pushed back several times.
Nonetheless, according to Commissioner Dan Berkovitz, there appears to be a strong will among lawmakers to ensure Bakkt’s first product — physically-delivered Bitcoin (BTC) futures — makes it to market.
Bakkt’s giant valuation pre-launch comes as the regulatory landscape in the U.S. surrounding crypto products remains uncertain across the board.
As Cointelegraph reported, the fate of the Bitcoin (BTC) exchange-traded fund (ETF) application by VanEck and SolidX, filed and withdrawn several times, currently hangs in the balance as public feedback appears to turn against the concept.
VanEck has sought on multiple occasions to assuage fears over the provenance of its offering.
