After a slow start last month, Bakkt’s Bitcoin futures platform is accelerating this week. With Bitcoin recording massive gains Friday, Bakkt’s volume has almost treble compared to its previous historical high.
October 28, 2019, | AtoZ Markets – The volume of Bakkt’s Bitcoin Futures explodes 260% to $ 11 million in 24 hours. The Institutional Bitcoin Trading Platform (BTC) Bakkt is on track to triple its record high level of trading volume after setting new records last week. The platform tweeted that it set a new daily record of 1,179 contracts traded. Friday, Bitcoin experienced a massive swing of 40%, which saw an increase in activity across all exchanges.
The Slow Start of Bakkt
After a year of delay, Intercontinental Exchange (ICE) finally launched last month its Bakkt Bitcoin futures platform. Institutional investors were expected to arrive with their bags full of money. But this did not happen out of the gate.
Most of the time, the volume was much less than $ 2 million. However, on Wednesday, it accomplished a record volume of $ 4.8 million, with 640 contracts negotiated. Two days later, it nearly doubled its previous volume to contracts traded.
While Bakkt’s offer is physically settled, institutional investors are finally starting to adopt it. Economist and trader Alex Kruger pointed out that these contracts are not traditionally popular among institutional investors. 98% of futures contracts are not settled physically
Like any other cryptocurrency exchange, Bakkt’s volume rises every time there is extreme volatility. During the day of its previous record of 640 contracts, Bitcoin lost nearly $ 1,000. Now, with almost $ 2,500 gain overnight, the number of contracts negotiated has almost doubled.
At press time on Monday, daily trading amounted to 240 BTC ($ 2.3 million), with most of the trading day still ahead.
Bakkt’s performance benefited from the announcement of China’s choice to formally adopt blockchain technology. When it broke at the end of last week, Bitcoin responded immediately, reaching local highs of $ 10,500.
Bakkt Is Looking for New Opening
Bakkt is looking to capitalize on the Bitcoin markets and will not remain silent with its unique offering. It will launch Bitcoin options contracts in December.
It is the first regulated option contract for Bitcoin futures and has already received approval from the US Commodity Futures Trading Commission (CFTC). The Bakkt Bitcoin option contract will be based on its futures contract. However, customers will have the opportunity to choose the method of payment.
Think we missed something? Let us know in the comments section below.