In order to take advantage from institutional investors, Bakkt has launched the BakktX, a revolutionary type of electronic communication network (ECN) designed specifically for institutional crypto trading.
The cryptocurrency market might be facing a temporary pause, but that hasn’t dented the optimism of crypto custody firm Bakkt. In a bold move, Bakkt is predicting a significant surge in institutional investor participation, fueled by the recent SEC approval of Bitcoin exchange-traded funds (ETFs).
Bakkt’s latest positive outlook echoes Bakkt’s most recent performance with a quarter ending on March 31, 2024. The company showed an impressive number, a staggering 324% increase in crypto trading volumes when compared to the last quarter, which come out of significant client activity.
“As evidenced in our trading volumes in Q1, we’ve begun to see positive green shoots in the market and the overall demand environment improving, with more industry activity, higher coin prices and overall higher retail trading volume,” said Andy Main, president and CEO of Bakkt.
However, Bakkt recognizes that there is one major obstacle – the current cryptocurrency trading infrastructure has been primarily created for individual investors with a structure of a central limit order book, which is not ideal for the huge requirements of institutional investors that are aiming to establish Bitcoin ETFs.
Taking advantage of this opportunity, Bakkt has taken a proactive stance to create the BakktX, a revolutionary type of electronic communication network (ECN) designed specifically for institutional crypto trading.
BakktX’s Institutional Advantage
BakktX promises to be a game-changer for institutional investors by providing high-performance, low latency, and cost-effective solutions. This purpose-built trading venue will facilitate real-time trade execution by leveraging Bakkt’s extensive network of liquidity relationships.
Furthermore, BakktX boasts a low fee structure, specifically designed to incentivize trading volumes and cater to the demands of institutional investors. By offering top-tier infrastructure, Bakkt believes BakktX will not only strengthen existing relationships but also attract new clients seeking a reliable and efficient trading platform.
Looking beyond BakktX, the company has outlined a comprehensive growth plan for 2024. This includes expanding its product offerings and solutions, while simultaneously focusing on broadening its client network, deepening existing relationships, and continuously improving its cost structure.
Bakkt’s Strategic Vision in Crypto Trading
In an effort to streamline its business operations and increase profits, Bakkt recently undertook a 20% staff reduction. This cutback plan is set to bring substantial cash savings for the company, which are expected to amount to $7 million in 2024 and $13 million annually thereafter.
Amid the launch of BakktX, especially targeting institutional investors, the company keeps its aim high, being one of the leading crypto trading platforms. Although the recent decrease in trading volumes in major crypto exchanges points to a temporary setback, Bakkt’s strategic view is preparing for institutional crypto trading.
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