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Bakkt Starting to Bounce Back — Will Investors Embrace It?

2 mins
Updated by Max Moeller
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Bakkt’s physically-settled Bitcoin futures continue to be the center of much debate around the institutionalized acceptance of the market-leading cryptocurrency for investors. Debatably underwhelming since their launch, the volume does look to be on the up as this week draws to a close.
Since breaking its all-time high of 224 contractst traded on October 9, Bakkt’s trading volume has tanked substantially to hover closer to under 50 contracts a day — with each contract being worth 1BTC. However, early indications for Friday, October 18, show a bit more excitement and uptick as a forecast from Bakkt Volume Bot has set its sights on 100 BTC being traded for the last day of the week.

Bakkt Disappointment: A Product of Overhyping

Potentially, one of the biggest problems facing Bakkt and its adoption towards the target market of institutionalized investors is the hype it received before launch. Conducted through Intercontinental Exchange-owned (ICE), Bakkt was the doorway to Bitcoin adoption with its regulated offering and, most importantly, physically-settled contracts. Bitcoin futures contracts have been on the rise surrounding the launch of Bakkt. Binance and its new platform reached an all-time high of $700 million — all with a struggling Bitcoin market. Additionally, CME is going to launch ‘options trading’ in 2020, due to demand. Bakkt

A New Type of Offering

Perhaps it is Bakkt’s hyped offering that is the sticking point. Physically-settled contracts are something entirely new for investors and could be the reason the platform is being approached with caution. Economist and trader Alex Krüger outlined this in comparison to the far less intimidating offering from CME.   However, as one of Krüger’s parting thoughts states, “institutions will trickle in.” No doubt, this offering from Bakkt is something that is aligned for the future of investing in Bitcoin and, as time goes on, it will surely pick up more steam — with the cryptocurrency space being further normalized and legitimized by ongoing advancements. Are we giving Bakkt a hard time so early on in its launch — or, has this weaker than expected performance from the regulated platform shown the idea of physically settled contracts is a flop? Let us know your thoughts!
Top crypto platforms in the US | March 2024



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Julian Thomas
Julian has had a long interest in financial technology, especially cryptocurrency and blockchain. He studied to be a journalist and then decided to marry his passion for fintech with his skill in writing to report on this ever-changing and rapidly moving space.