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.— Alex Krüger (@krugermacro) September 24, 2019
=> comparing Bakkt with the CME is perfectly fine, particularly so with Bakkt's monthly contract.
Bakkt Surges With VolatilityBakkt’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 Bitcoin when BTC gained 42% in a single day.
Bakkt is like any other crypto exchange. During times of low volatility, it hardly sees any volume, and there is high volume when Bitcoin makes big moves.
ICYMI: Thursday's Bakkt Bitcoin Monthly Futures:— Bakkt Volume Bot (@BakktBot) November 8, 2019
📉 Traded contracts: 834 ($7,697,820)
📅 Day before: 903 (-8%)
🚀 All time high: 1183 (10/25/2019)
*bleep blop* tip sats for server costs https://t.co/TF6sNUwWpO 🤖 pic.twitter.com/hgxCdoQCQd
Bitcoin Fails to Hold on to SupportBitcoin failed to hold on to support at $9,000, slipping below that point for the first time since its rally to $10,500 at the end of October. It lost five percent of its value, dropping down to a closing value of $8,783. As Bitcoin turned volatile, Bakkt’s volume surged once again. It had a significant boost in its early hours. as 970 BTC was traded within the first eight hours of the day. Towards the end of the day, a total of 1,756 BTC was traded, setting a new record-high volume. Bakkt seems to have now gotten its footing and is consistently posting daily volumes above $5 million.
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