Don’t Get Too Upset or Excited About Bakkt’s Current Trading Volume & Developments Yet: Report

  • Bakkt accounts for “only a tiny fraction” (~0.001%) of ICE’s total volume and earnings
  • Be cautious about banking too much on BTC futures
  • ICE well-positioned to become a market leader in the crypto markets
  • Physical delivery could spur BTC adoption as a currency in the long run

As we saw in the past couple of weeks, Bakkt has really failed to gain much traction but just like many other crypto industry commentators, Oppenheimer Research Note also says, it’s still early days for the digital asset platform.

On Sept. 22, Bakkt, a joint venture by ICE, Microsoft, Starbucks, and BCG, launched its bitcoin futures for trading.

The market was expecting a bull rally triggered by this launch because of, as the report points out, a few reasons. The first and foremost being the physical delivery of BTC futures when the contract expires and

“ICE CEO Sprecher's track record of disruption.”

However, the trading volume recorded by Bakkt saw a much slower start than that of CME and CBOE and further comprised “only a tiny fraction” of ICE’s total volume and earnings.

Bakkt Bitcoin futures, that represent one BTC per contract, traded only 125 contracts on average in the first five days of trading in comparison to 2,000 contracts traded on CBOE in the first five days, and 500 contacts in CME for the first month.

Cautiously Optimistic View

Bitcoin futures aren’t a meaningful contributor yet, given the fact that it comprised only ~0.04% and ~0.001% of the average trading volume of CME and ICE, respectively.

Although BTC futures presents significant potential, they are being cautious about banking too much on them because the current earnings contribution is immaterial and the scope of BTC adoption is uncertain and limited.

Moreover, the report further states that with CME to launch options on its BTC futures contracts in 1Q20 — highlighting increased interest from institutions — will allow

“~3,300 CME individual accounts trading bitcoin futures another channel to bet on the volatility of bitcoin.”

But Why Positive?

Despite Bakkt’s slow start the firm is

“encouraged by the development of Bakkt in terms of its infrastructure.”


“bitcoin futures are still nascent and form only a small fraction of exchanges' ADV, therefore, we recommend investors shouldn't get too upset, or excited, about the current trading volume and developments yet,”

it reads.

ICE operates exchanges, clearing houses, and listing venues for fixed income, commodity, and equity markets in the US and Europe.

“Given that ICE has many other electronification initiatives in fixed income analytics and trading, mortgages, and fixed-income ETFs, we recommend investors not get upset about the current trading volume,”

states the report.

Actually, they are positive on ICE’s involvement as the company sees it as the true disruptor in the space which is a leader in energy and

“well-positioned to become a market leader in the digitization of the fixed income, mortgage and crypto markets.”

The report further points out that the physical delivery could spur BTC adoption as a currency in the long run.

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

Venus Protocol's Decentralized Stablecoin, Via, Launches on Binance Smart Chain; Forked From Compound & MakerDAO

On September. 28, Binance announced the launch of Venus Protocol, an algorithmic money market platform that allows borrowing of over-collateralized loans, lending, and generation...

‘Large-Scale' Crypto Exit Scams Detected in Estonia’s E-Residency Program

Estonia had granted foreigners remote access to its digital infrastructure through its e-residency program, which is now linked to cryptocurrency frauds abroad. Amidst Europe working...

Grayscale Bought 17,100 BTC Last Week, Now Holds 2.4% of Bitcoin’s Supply

As the bitcoin price continues to remain under $13,000 for over a year now and around $10,000 for more than the past month, there...

EY Debuts First ERP Solution on the Ethereum Public Blockchain and Enhances On-Chain Analytics Explorer

Consulting giant Ernest & Young (EY) has launched an enterprise procurement solution based on the Ethereum public blockchain. This initiative will leverage smart contract...

YFI Founder Andre Cronje ‘Still Building' the DeFi Project that Got Hacked for $16 Million

Amidst the craze and shift toward non-fungible tokens (NFT), DeFi sweetheart yEarn’s founder Andre Cronje’s latest project saw rug pulled on $16 million. The project...

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