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Bitcoin futures trading platform Bakkt has reached a new all-time high, however, it hasn’t had a positive impact on Bitcoin price.
Bitcoin futures platform Bakkt has reached a new all-time high of $20 million or 2,728 contracts. This comes as many have been wondering if the launch of the platform by Intercontinental Exchanges (ICE) was just a fluke or an attempt at trying to take over the crypto space.
The recent development shows that this trading volume observed on November 22 is 66% higher than on the previous trading day and about 30% higher than the last all-time high which occurred on November 8.
According to the @BakktBot, the open interest has also increased by 29% in the last trading day and is currently at about $1.75 Million. This indicates that trading activity is picking up on the exchange after an extremely slow start which was previously linked by many experts to declining Bitcoin prices but has also been disproved as Bitcoin prices are also below $8,000 at the moment.
Daily summary of Friday's Bakkt Bitcoin Monthly Futures:
📈 Traded contracts: 2728 ($20.30 million, +66%) (New ATH 🚀)
🚀 All time high: 2728 (11/22/2019)
💰 Open interest: $1.75 million (+29%)
— Bakkt Volume Bot (@BakktBot) November 23, 2019
Based on the price differentials since the launch of the platform in September, price increases in Bitcoins have also been linked with volume increases on the futures platform but the difficulty of depending on those kinds of metrics is that the Bitcoin market has so many factors working for and against it. And these days it is too difficult to tell what exactly is driving the cryptocurrency prices either up or down.
ICE further reports that as at Friday, Bitcoin contract prices on the platform stood at $7,240 as at the last count. This further indicates that the platforms’ price reporting mechanisms of the futures platform are in tandem with other cryptocurrency financial institutions on a global scale.
Bakkt seems to have been in the news for all the right reasons in recent times. The futures platform has recently allowed for custody of Bitcoin assets to all kinds and types of institutions which has further raised the bar giving the platform higher goodwill from members of the crypto space. Reports also indicate that the futures platform is set to offer cash-settled futures contracts come December which will be listed by ICE Futures Singapore on December 9th. But this has generated much controversy among many members of the global cryptocurrency community.
ICE as an organization seems poised to make major gains within the crypto space and it is quite telling seeing the kinds of offerings and products that the organization has been bringing to the table of late. As one of the largest operators of securities exchanges, making entry into the crypto world may prove to be a smart move in the long run due to the volatility that cryptocurrencies sometimes experience and the nascent nature of the technology.
For now, though, it seems like the new futures platform is taking root and how this goes will be determined by how investors embrace the new platform.