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.
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.
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.