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Bitcoin Trading on ICE’s Bakkt Futures Platform Breaks $290,000 Barrier

By on September 23rd, 2019 at 1:31 pm UTC · 3 min read

With Bakkt trading 29 Bitcoin Futures contracts as of writing, experts say that Bakkt will see a gradual scale-up and incremental demand due to its nature of physical delivery.

Bitcoin (BTC), Bitcoin Futures, Cryptocurrency News, News
Photo: Shutterstock
Photo: Shutterstock
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Earlier today, Bakkt announced the live trading for its much-awaited Bitcoin Futures contracts. Bakkt Bitcoin Futures Contracts come with daily and monthly settlement periods along with its safe custodial solution called the Bakkt Warehouse.

Bakkt entry to the Bitcoin market has not been a big-bang event as many might have expected! At press time, the Bakkt platform has traded 29 Bitcoin Futures contracts as per the official data with a total traded value over $290,000. According to Bakkt, the first trade execution took place at a BTC price of $10,115 after which Bitcoin slipped to $9938 levels, at press time.

This soft launch of Bakkt has certainly not impressed the Bitcoin investors. However, experts from the crypto industry think that in the coming days, we can see higher institutional inrush. Experts say that we can’t estimate Bakk’ts futures contracts performance on the first day itself.

This is because not all futures brokers are ready to clear the contracts on the first day. Moreover, it takes time for companies to set up their accounts, formulate their trading strategies and thus build volumes.

Expert Opinions on Bakkt Bitcoin Futures Launch

Last week, popular crypto market analyst made some comparison of the Bakkt Bitcoin Futures launch with the CME Bitcoin Futures launch. In a Twitter poll, he asked his followers if Bakkt can manage to make the same impact as the CME.

However, responding to it another crypto investor Ari Paul said that the nature of both these futures contracts is completely different. While CME’s Bitcoin Futures are cash-settled, Bakkt offers physical delivery for its contracts. Paul argues that physical contracts usually see a ‘gradual scale-up’, unlike the cash-settled ones.

Moreover, if we see the timing of the launch, the Bitcoin trading volumes during December 2017 were much higher in comparison to what they are today. According to data by Messari, the Bitcoin trading volumes today are only $367 million which shows the reason behind low volatility. On the other hand, the data by Blockchain.com shows trading volumes at $1.36 billion. Thus, only when we get a real idea of the Bitcoin price movement, we can get to know the true impact of Bakkt.

Commenting on the matter further, Simon Peters, Analyst at eToro, said:

“The Bakkt launch has already been priced into recent market movements, and we may see some early speculators who bought bitcoin in anticipation of the Bakkt release deciding to cash out their profits, following the popular ‘buy the rumour, sell the news’ maxim”.

He further added:

“For me, it’s price discovery which makes Bakkt an important and much welcome development for the community. As the platform won’t rely on unregulated spot markets for settlement prices, it will serve as a transparent price discovery mechanism to establish a better benchmark price for bitcoin going forward.”

Bhushan Akolkar
Author: Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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