Bakkt Fails to Attract Wall Street Investors on its First Day, Records a Meager 28 BTC Volume

    Bakkt is live!

    The physically delivered Bitcoin futures by Intercontinental Exchange (ICE)–backed Bakkt has been finally launched with the first trade executed at 8:02 pm ET at a price of $10,115.

    The most exciting thing about these features is that the contracts will deliver actual Bitcoin.

    The company is offering a daily as well as a monthly contract. While the daily contract will be available for investors to buy or sell for 70 days, monthly will be listed for 12 months out, and both can be rolled upon expiration.

    This move, “to centralize and create a scalable infrastructure for crypto asset investment” is “a positive step,” said James Putra, head of product strategy at TradeStation Crypto.

    However, it hasn’t been smooth sailing for Bakkt as the company faced months-long delay over how to store clients’ tokens.

    As such, the company sought a license from New York financial regulators to permit Bakkt custody unit to hold customers’ coins.

    “This contract is squarely designed for institutional participants,” said Adam White, chief operating officer of Bakkt. And the combination of regulated trading with custody is what sets it apart from others, he said. “That is of the utmost importance to institutions.”

    Low Volume, No effect on price

    Bakkt marks the first federally regulated market to buy and sell Bitcoin that has been expected to bring in conservative institutional investors who stayed on the sidelines.

    However, for now, the performance remains on the low side.

    In the first 30 minutes of listing mere 3 BTC volume has been traded on Bakkt. Now, after about 12 hours, the volume has increased to 28 BTC, amounting to roughly $280,000.

    Su Zhu, CEO of FX Hedge Fund Three Arrows Capital says this is the reality of the “most regulated futures contracts” that they get low adoption on their first day because “not all futures brokers are ready to clear it, many ppl want to wait and see, and tickers are not even populated on risk systems.”

    “Bakkt will be likely first a trickle and then a flood,” he said.

    Founder of Adam Back shares similar sentiments as he said, “it takes time for companies to setup accounts, decide trading strategies & for volume to build.

    “Recall CME futures open vs today's growing volume,” he added.

    CME is Bakkt’s main competitor that is now getting ready to begin options on its Bitcoin futures contracts in Q1 of next year, pending regulatory review.

    Just like with the volume, Bakkt launch failed to push BTC prices higher. Bitcoin is currently, trading at 9,930 with 24 hours loss of 0.70% as per Coincodex.

    It’s to be seen if today Bitcoin price will see any action.

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    AnTy has been involved in the crypto space full-time for over a year now. Before his blockchain beginnings, he 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


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