Bakkt Parent Company ICE Tried to Takeover eBay, Though Talks Stalled

The New York Stock Exchange’s parent company, Intercontinental Exchange (ICE), has released an official statement saying that its discussions with e-commerce giant eBay had ended, following a Wall Street Journal report that revealed the two entities were in talks. Notable figures in the cryptocurrency space, such as Morgan Creek partner, Anthony Pompliano, have also suggested that a combination of these entities would have enormous ramifications.

WHOA.

The owner of the New York Stock Exchange is thinking about taking over eBay at a valuation of more than $30 billion.

This is the same company that realized the importance of Bitcoin enough to start Bakkt.

Would be incredible to combine NYSE, Bakkt, & eBay under one roof.

— Pomp 🌪 (@APompliano) February 4, 2020

Founded in 2000, ICE is a Fortune 500 company that conducts multiple services, including operating exchanges, clearing houses, and information services related to investing, trading, and risk management. The relevance to cryptocurrencies comes in the form of ICE being the company behind Bakkt, the institutional investment firm that offers multiple products, including Bitcoin futures and options. Futures are contracts that enable users to buy assets at a specified price at any time in the future.

Bakkt’s Volumes Are Seeing Considerable Growth

In early February, Bakkt saw open interest in Bitcoin grow by 114% in just a week, a sign that new buyers are entering the market – which has been on the rise since late last year. However, Bakkt’s Bitcoin options volumes have hit a low point, showing zero volume towards the end of January. [The Ice] Futures, a form of derivatives, are showing reasonably healthy growth – but cryptocurrency derivatives as a whole are experiencing a breakout moment, with the decentralized finance space (DeFi) growing year on year. The total funds currently locked in DeFi is roughly $920 million, almost four times as much as it was the same time last year. [Defi Pulse]

Could Bitcoin Integration Be Coming to E-Commerce Platforms?

Given the excitement surrounding Bitcoin investments and Bakkt’s involvement, talk about possible Bitcoin and cryptocurrency integration will invariably follow this failed takeover bid. The eCommerce space is an ideal application for cryptocurrencies, as it can reduce fees – and not to mention to entice sellers on the platform by giving them access to a currency that could potentially grow multi-fold over the next years. Still, it appears investors will have to wait before something of this nature materializes, but there’s no doubt that this could be profitable for both ICE and its subsidiaries and end users on eCommerce platforms.