Bitcoin futures platform Bakkt picks up and is expected to make a splash in the crypto space.
Many people within the crypto space had expected the new kid on the block when it comes to cryptocurrency securities, exchanges, and other related instruments to drive the cryptocurrency sentiments to new highs, however, the reverse has been the case. As investors haven’t warmed to the Intercontinental exchange’s (ICE) Bakkt Futures platform.
But that is expected to change as indications have emerged that Bakkt is set to break records this month. On November 5th, trading on the platform reached a close high of 1061 contracts worth $10 million which is 96% more than the previous trading day.
Twitter handle Bakkt Volume Bot which isn’t an official account of the platform but is rather managed by crypto-journalist Gert-Jan Lasterie indicated that the platform reached an all-time high on October 25 which shows that activity had started picking up.
Trading data received from the Twitter handle indicates that the rise in trading volume corresponds with the rise in Bitcoin prices from $7500 to $10,000 and the prices have now settled around $9,000 currently. This gives indications that the platform is gaining adoption and it will fulfill the hopes of ICE.
This price correlation in tandem with trading volume demonstrates that Bitcoin prices (Bakkt only offers Bitcoin futures contracts for now) have one more reason to soar exponentially hopefully before the end of the year. This is because the inflows coming from the investors who have contracts will also flow into other Bitcoin markets as many of the expected investors on the platform are institutional investors. And they are new to the crypto space. So it many ensure pushing prices higher than the 2017 levels and providing new levels of support as well.
If the daily trading data keeps up this way, the trading volume of futures contracts could reach $200 million or more because the platform is a unicorn among the derivative exchanges currently. Being the first platform to settle cryptocurrency futures contracts physically, many had hoped that the exchange will pave way for higher adoption but the platform hasn’t lived up to initial expectations.
Bakkt was launched on September 22nd, 2019 and has been in operation for about one month plus now. It is the only exchange in the world that physically settles Bitcoin contracts as of now. This is important due to the pseudonymous nature of transactions that occur on the Bitcoin blockchain. A such, physical settling of the contracts provides greater transparency to the crypto space and gives a path for easy entry into the markets for newcomers who have not been in the markets before and need a transparent, easy secure way to access cryptocurrency offerings.
Now, Bakkt may not yet reach the $910 Million daily trading volume of Binance but if the markets keep speeding up it could come within striking distance in a few months.