Bakkt Bitcoin Physical Delivery Jumps 22% in May After A 60% Decline Last Month

The number of bitcoin contracts that were held to expire on Bakkt increased by 22% in May. Last month, it was 117 BTC and this month 143 bitcoin futures contracts are to expire.

However, these are far from the levels seen earlier this year, both in BTC and USD terms.

The record so far was in March at 293 contracts, both January and February also had more than 200 bitcoin delivered, at 230 and 203 respectively, as per Arcane Research.

The number of bitcoin contracts to be expired on Bakkt in 2020 so far has been growing compared to the fourth quarter of 2019. This ICE-backed regulated bitcoin exchange was the first one to offer physically delivered bitcoin products.

After its launch in September, in the next three months of last year only 15,17, and 8 BTC futures contracts expired in October, November, and December respectively.

Slowly Moving Up

Besides the growth in the Bakkt BTC delivery, its trading volume has also started picking up. In April, the combined volume of both cash-settled and physically-settled bitcoin futures remained around $10 million but in May the daily volume has doubled.

But it is still way below the record level of 6601 BTC contracts (worth $48 million) traded on Dec. 18, 2019.

Open interest jumped to $13 million at the beginning of May from the low of $5.4 million in April. Last week, we again dropped to $7.5 million but are slowly trending up again.

Source: Skew

Meanwhile, open interest on CME bitcoin futures continues to grow, currently at $517 million. Trading volume on the Chicago Mercantile Exchange has also doubled from around $200 million at the end of April.

No Options traded for about a month

When it comes to bitcoin options, for nearly a month now Bakkt has been recording $0 compared to CME’s record last week, as per Skew Markets.

Options are derivatives that give the buyer the right to buy or sell an underlying asset at a predetermined price on or before the specified date.

Bakkt launched its options contracts in early December, over a month before CME.

While open interest on Bakkt bitcoin options remains below $70 million, CME has hit a new record of $172 million.

Source: Skew

For some time now, Bakkt has been silent with not much going on with the exchange whose launch was eagerly anticipated.

However, yesterday Bakkt announced that it has onboarded more than 70 clients for its custody services. Insurance broker Marsh is one partner which has to purchase over $500 million worth of cover along with the custodian’s existing $125 million insurance coverage.

It further reported on its retail-focused mobile app, which is eyeing a potential user base of 30 million after partnering with two unnamed financial institutions.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitfinex Offers $400M Reward For Info on 120k BTC Stolen in 2016; Hackers Can Collect Too

On August 2, 2016, Bitfinex experienced one of the biggest crypto heists of all time, as hackers exploited the system, running off with approximately...

Crypto Trading Platform, 2gether, Unable To Refund $1.4M Hack; Offers Its Native Tokens

Spanish cryptocurrency trading app, 2gether announced on Sunday the platform faced a hack on July 31 on its investment coffers losing €1.183 million ($1.4...

Venture Fund to Invest Majority of $100 Million Raised Fund in DeFi Protocols

San Francisco-based venture fund Electric Capital has raised $100 million from university endowments and other non-profits and it will be using this to invest...

Filecoin to Begins its Incentivized Testnet This Week Ahead of Project Launch Next Month

Crypto project Filecoin which proposes to create a peer-to-peer storage system, will begin its incentivized testnet this week. This testnet will allow users to...

Ethereum 2.0 Final Testnet, Medalla, Rolls Out; Is A 2020 Launch Now In Sight?

The Ethereum 2.0 Phase 0 Medalla public testnet finally went live on August 4, 2020 at around 1AM GMT giving hope of a possible...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today