The crypto industry has been evolving rapidly in recent years, and the latest development in this space is the merger of Intercontinental Exchange’s (ICE) subsidiary, Bakkt, with a Special Purpose Acquisition Company (SPAC) VPC Impact Acquisition Holdings, valued at $2 billion. This merger is expected to be a significant event in the crypto world, and it has already created a buzz in the financial market. In this article, we will discuss the details of the Bakkt and SPAC merger, its impact on the crypto industry, and why it is being considered a game-changer in the field.

What is Bakkt?

Bakkt is a subsidiary of Intercontinental Exchange (ICE), which is one of the world’s leading operators of regulated exchanges and clearinghouses for financial and commodity markets. Bakkt was launched in 2018 with the aim of creating a secure and regulated ecosystem for digital assets and cryptocurrencies. The company offers a range of services and products to support the growth of the crypto industry, including the trading and custody of cryptocurrencies, physical delivery and storage of digital assets, and institutional-grade infrastructure for the digital asset industry.

What is a SPAC?

A Special Purpose Acquisition Company (SPAC) is a type of investment vehicle that is created for the purpose of acquiring another company through a merger or acquisition. Unlike traditional initial public offerings (IPOs), where companies go public by issuing new shares, SPACs raise capital through an initial public offering and then look for an acquisition target to merge with. The merged company becomes a publicly traded company, and the SPAC shareholders become shareholders of the new entity.

Bakkt and SPAC Merger:

The merger between Bakkt and VPC Impact Acquisition Holdings (a SPAC) was announced on February 10, 2023. The deal is valued at $2 billion, and it is expected to bring Bakkt to the public market. The merger is expected to be completed in the second quarter of 2023, and once it is complete, the new company will trade under the ticker symbol “BAKKT” on the New York Stock Exchange (NYSE). sources exchange bakkt spac 2b

Impact of the Merger on the Crypto Industry:

The merger between Bakkt and VPC Impact Acquisition Holdings is expected to have a significant impact on the crypto industry. Here are a few key points that highlight the impact of this merger:

1. Increased Liquidity: One of the key benefits of the merger is that it will bring increased liquidity to the crypto market. As a publicly traded company, Bakkt will be able to attract a larger pool of institutional and retail investors, which will lead to increased liquidity in the market.
2. Regulated Environment: Bakkt is known for providing a secure and regulated environment for digital assets and cryptocurrencies. The merger will bring Bakkt’s expertise in regulatory compliance to the public market, which will help to further establish the credibility and legitimacy of cryptocurrencies.
3. Increased Adoption: The merger will also increase the adoption of cryptocurrencies by making it easier for investors to access and invest in the crypto market. Bakkt’s institutional-grade infrastructure and secure storage solutions will make it easier for investors to invest in cryptocurrencies, which will further drive the growth of the crypto industry.
4. Better Access to Capital: As a publicly traded company, Bakkt will have better access to capital, which will help the company to expand its offerings and continue to drive innovation in the crypto space. The merger will also give Bakkt the ability to make strategic acquisitions, which will further enhance its position in the crypto industry.

Why is the Bakkt and SPAC Merger Considered a Game-Changer?

The Bakkt and SPAC merger is considered a game-changer for several reasons:

1. Bringing Institutional Investors into the Crypto Market: The crypto industry has been largely dominated by retail investors, but with the Bakkt and SPAC merger, institutional investors are expected to enter the market in a big way. Bakkt’s focus on providing a secure and regulated environment for digital assets and cryptocurrencies, combined with its institutional-grade infrastructure, will make it easier for institutional investors to invest in cryptocurrencies. sources exchange bakkt spac 2b
2. Improved Transparency and Regulation: The merger is expected to bring greater transparency and regulation to the crypto market, which will help to establish the credibility and legitimacy of cryptocurrencies. Bakkt’s expertise in regulatory compliance will help to ensure that the crypto industry operates in a manner that is in line with existing financial regulations.
3. Increased Accessibility: The merger will increase the accessibility of cryptocurrencies to a wider range of investors. Bakkt’s institutional-grade infrastructure and secure storage solutions will make it easier for investors to invest in cryptocurrencies, which will help to drive the growth of the crypto industry.
4. Better Valuation and Liquidity: As a publicly traded company, Bakkt will have a better valuation and liquidity compared to a private company. This will allow the company to attract a larger pool of investors and provide better returns to its shareholders.

Conclusion:

The merger between Bakkt and VPC Impact Acquisition Holdings is a significant event in the crypto industry, and it is expected to have a major impact on the growth and development of cryptocurrencies. The merger is a game-changer for several reasons, including increased liquidity, improved regulation and transparency, increased accessibility, and better valuation and liquidity. The crypto industry is still in its early stages of development, and the Bakkt and SPAC merger is expected to play a critical role in shaping the future of this rapidly evolving industry. sources exchange bakkt spac 2b