There is no question that the approval of two Bitcoin exchange traded-funds by the United States Securities and Exchange Commission were the biggest cryptocurrency news during the month of October 2021. Some market analysts remarked that these events were even more momentous than the adoption of Bitcoin as legal tender in El Salvador, which is something that Cuba and Ukraine have also authorized, but have yet to implement. You could argue that circulation of Bitcoin is crucial, but there is no question that having official representation of Bitcoin on Wall Street is also intrinsic to the growth of this digital currency.
Other cryptocurrency news headlines from the final week of October included the stock of Bakkt, a company that intends to normalize the use of digital currencies among merchants in the U.S. and beyond. On October 25, Bakkt announced a major partnership with Fiserv and MasterCard. These two providers of financial services at the consumer levels want to provide branded cryptocurrency wallets that have the custodial support of Bakkt. Shares of the company surged by more than 100% thanks to this announcement.
These transactions will now be possible through the partnership with the existing network of over 30,000 US ATMs operated by companies like the Fifth Third Bank, PNC Bank, National City Corporation and FirstBank, according to the press release. Both of these announcements are the latest step forward in Bakkt’s ambitious plan to bring institutional investors into the crypto space, something that’s been promised since the start of 2017. However, the road to a working, and profitable, crypto-related services infrastructure remains unclear.
The rise in Bakkt’s share price this week is indicative of investors’ general perception that the crypto firm has been making steady progress. It should be noted that nearly all the trading products involving cryptocurrency products on Wall Street and at the Chicago Mercantile Exchange are supported by the custodial services that Bakkt provides. Whenever there is a need to attract institutional investors into the cryptocurrency sphere, there needs to be some assurance in the sense that funds will be handled securely and with full adherence to compliance reporting.