September 24, 2019, | AtoZ Markets - Bakkt, a platform of the Intercontinental Exchange (ICE), traded a mere 71 contracts in its first 24 hours of trading and later increased to 73.
As AtoMarkets reported, the much-anticipated Bakkt platform went live on September 22 and according to ICE’s historical data on Bakkt’s Bitcoin/USD futures contract trading, the platform has initially traded 71 BTC, with the last recorded trading price settling at $9,875 per Bitcoin.
Bakkt’s margin requirements to invest in BTC futures trading
This new type of instrument was expected to have a warmer welcome. However, some experts point out that investors are taking their time due to the recent drop in bitcoin price, which is currently trading below $10,000.
Just before the launch ICE placed “tentative” margin requirements for the contracts, setting the initial hedge requirement for daily and monthly futures contracts at $3,900, while the speculative initial requirement for both contracts is $4,290.
Additionally, the inter-month add-ons for the monthly and daily futures contracts are between $400 and $1,000 for the hedge rate, and between $440 and $1,100 for the speculative rate.
The reason behind Bakkt’s launch
Bakkt is the first platform of its kind to be approved by US regulators. Adam White, COO of Bakkt said in an interview with CNN’s Julia Chatterly that ICE’s intention in setting up the platform was to create an integrated platform that enables retail customers and institutional trader to buy, sell, store and spend digital assets on a “seamless global network.”
Bakkt CEO Kelly Loeffler said after the launch, that the platform provides “reliable and regulated infrastructure” while pushing for the “adoption of new digital currency-powered technology and financial instruments.”
Industry players optimistic about Bakkt’s launch
Fundstrat Global Advisor, Thomas Lee, argued in advance of the Bakkt launch that it would enhance Bitcoin’s reputation, as well as that of other cryptocurrencies. Lee wrote, “I am very positive on Bakkt and its ability to improve trust with institutions to crypto.”
American investor and Morgan Creek Digital Assets co-founder Anthony Pompliano, also said that institutional investors would end up with BTC in their portfolios: “The more infrastructure that’s built around this, the more likely it is to never go away […] we’re at a tipping point now where Bitcoin is here to stay. It’s going to end up being in every institutional investor’s portfolio.”
Bakkt exited from stealth-mode in August 2018, promising to offer bitcoin futures contracts that are physically-settled, unlike competing platforms like CME which are cash-settled.
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