“Bakkt has Bitcoin Bulls Excited” But Don’t be Too Excited

  • In two months, Bakkt recorded an increase of a whopping 6,070% in volume
  • Bakkt’s daily futures contracts’ volume is “zero” just about “everyday”
  • Bakkt the same as CME, however, Coin Shares says “If gold is any precedent, then brace for growth”

The day Bitcoin price jumped nearly 12% — from the low of $6,850 to just above $7,670 — Bakkt smashed its previous record.

What’s even more exciting is that the new record has been an increase of a whopping 60% from the last record-setting day.

On Nov. 27, two months after its debut Bakkt Bitcoin Futures reached a record high of 4,443 contracts. Now the physically delivered Bitcoin futures platform is all set to launch the options on these contracts early next month.

“We look forward to building on this momentum as we approach the launch of the Bakkt Bitcoin Options contracts on Dec 9th,” tweeted Bakkt about this achievement.

“Bakkt has Bitcoin bulls Excited”

In the backdrop of the exponentially growing volume, an increase of 6,070% from its opening day volume of just 72 BTC, economist and trader Alex Kruger said the market is riding the Bakkt wave.

“Bakkt has bitcoin bulls excited,” said Kruger.

However, according to Kruger, it is not the volume that makes the platform “special for bulls” rather the fact that the contracts are physically-settled. And in November, the figures for those have been just 17 Bitcoin, up 2 BTC from October’s number.

The majority of these volumes are for contracts that are to be expired in December.

But not Something to get “very excited” about

Bakkt’s daily bitcoin futures contracts are settled every day, unlike its monthly contracts, with physical delivery in Bakkt warehouse. So, these are the ones where BTC is stored in a regulated warehouse.

However, the volume of Bakkt’s daily futures contracts is “zero… everyday.” expect for two days in September when 1 BTC was delivered each day.

Although the growth in volume Bakkt is seeing is “very positive” Kruger says it is not different than CME as it almost only trading paper, which is cash-settling. However, “the more regulated volume, the better,” Kruger said.

As such it is “not something to get very excited about” because of the low physical volume but it is definitely good for the industry, he said.

Recently, Bakkt also announced the launch of cash-settled bitcoin futures in Singapore next month.

Digital asset investment firm, Coin Shares meanwhile points how “If gold is any precedent, then brace for growth,” as its cash-settled futures market is 30x the physical gold market.

Long Way to Go

Overall, the Bitcoin futures market is trading at least $5 billion on a daily basis, reported Skew. However, when it comes to options market, Bitcoin still has “a lot to catch up” with trading just $35 mln notional over the last month.

But…

Bitcoin currently has a market capitalization of just $135 billion while each BTC trades at $7,465 as per Coincodex.

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
AnTy
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

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,467FansLike
2,795FollowersFollow
4,232FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Here’s the Larger Trend that Will Continue to Persist in the Markets

Yesterday, the bitcoin price dropped by 6.6% as it went down to $11,150. Today, the prices went down even further only to make it...

Another Unaudited ‘Zero Value' Farming Token is Taking the DeFi World by Storm & Coins Flying

The cryptocurrency world has been much faster than the traditional world, and now the DeFi space is running at a quicker pace than...

DeFi-Focused Protocol, Chia Network, Raises Another $5M in Funding Round

Chia Network, a Layer 1 focused blockchain project, has raised another $5 million in a funding round led by Slow Ventures. This latest...

Coinbase Withdraws From Blockchain Association Shortly After Binance.US Joins

Coinbase withdraws from the blockchain lobbyist group a day after Binance.US, Binance’s American wing, joined the group. In a report first published by The...

U.S Banks and Big Tech Ask the OCC for More Clarification to Issue Crypto Services

The United States Office of the Comptroller of the Currency (OCC) has received over 90 responses from various stakeholders’ in the financial services sector...

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