As Bitcoin lost nearly 5% of its value yesterday, institutional Bitcoin trading platform Bakkt reached a new record volume. A total of 1,756 Bitcoin Futures contracts were traded, worth approximately $15.5 Million.
Bakkt had a slow start after its launch in September. Following a year of delays, the institutional Bitcoin futures platform launched by Intercontinental Exchange (ICE) failed to meet its high expectations. In its first few days, it barely managed to break $1 million in daily volume. In fact, on some days, the volume was just $200,000, and the crypto community was all but ready to write it off.
It’s also important to note that Bakkt’s offering is unique in the institutional investment space. It offers physically-settled Bitcoin contracts in a space where more than 98% of the futures contracts settled are not physical. Traders did not want to take delivery and manage their Bitcoin, which resulted in the rocky start. In finance, 98% of futures are not physically settled as traders do not want to take delivery, even for physically settled contracts.
=> comparing Bakkt with the CME is perfectly fine, particularly so with Bakkt’s monthly contract.
— Alex Krüger (@krugermacro) September 24, 2019 Bakkt Surges With Volatility
Bakkt’s launch came at a time when there was low volatility in the Bitcoin industry. On Oct 24, Bakkt set a record volume of $4.8 million as Bitcoin lost $500. It was broken just two days after that, doubling its volume to $10.3 million. At this time it was the biggest day for […]
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