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Bakkt sets new record for physically backed Bitcoin Futures

  • The Bakkt Bot has announced a new record for the Daily Bitcoin Futures.
  • On Friday, 22 November 2019, 2,728 futures contracts worth around 20.3 million US dollars were traded on the Bakkt exchange.

Following the slow and disappointing launch of the Bitcoin exchange Bakkt, which is operated by the Intercontinental Exchange (ICE), trading of the physically backed Bitcoin futures continues to gain momentum. This seems to confirm the predictions of some experts that Bakkt simply will need time to establish itself in the market.

Over the past few weeks, Bakkt’s trading volume has grown slowly but steadily. Yesterday, Friday, November 22, 2019, the daily Bitcoin Futures contracts set a new trading record. According to the Bakkt Bot, which continuously tracks the volume of the exchange, a total of 2,728 futures contracts (worth one BTC) with a total value of 20.3 million US dollars were traded.

The new record represents an increase of 66 percent over the previous trading day and is approximately 30 percent above the all-time high of the 8th of November with 15.6 million USD and 1,741 BTC futures contracts traded. In addition, there was open interest of $1.75 million yesterday, an increase of 29 percent over the previous day.

Larger Bitcoin price movements set new Bakkt records

It is noticeable that the new record high once again coincides with a larger price movement on the cryptocurrency market. As already observable on December 9th, when the Bitcoin price had fallen below 9,000 US dollars a day before, Bakkt recorded a record value again afterwards.

As the analysis company Skew Markets found out, Bakkt’s high volume at that time arose in the same period when CME recorded a relatively high volume as institutions started to build up long positions through regulated contracts. In this respect, it is likely that institutions have taken the opportunity to buy the “dip” and build up long positions as part of Bitcoin’s (BTC’s) recent setback below USD 7,000.

However, it has also been observed in the past that not only larger Bitcoin price setbacks but also price upturns drove the volume on the Bitcoin exchange Bakkt. This was evident on October 25, 2019, when the Bitcoin price skyrocketed from around USD 7,400 to over 10,000 USD within a few hours. On that day, Bakkt recorded a record volume of USD 10.3 million and 1,183 contracts traded.

In this respect, Bitcoin’s volatility seems to be generating great interest not only among private investors but also among institutions, leading to new record trading volumes for Bakkt.

As CNF reported, Bakkt is currently seeking to expand its range of Bitcoin-related products as institutional interest seems to grow. Bakkt’s operator, the Intercontinental Exchange (ICE), announced yesterday that it will launch cash settled Bitcoin Futures contracts on December 09, 2019. The Bakkt Bitcoin (USD) Cash Settled Monthly Futures contracts are listed on ICE Futures Singapore and have been approved by the Monetary Authority of Singapore (MAS).

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About Author

Jake Simmons

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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