Bitcoin Futures volume on Bakkt is up, ETH futures coming in?

  • The volume of the Bitcoin futures on the Bakkt cryptocurrency exchange rose to a new all-time high on Wednesday.
  • According to the chairman of the Security and Exchange Commission (SEC), the crypto market has matured and investors around the world may soon be able to buy Ethereum futures.

As CNF has reported, the trading of the Bitcoin futures on the Bakkt cryptocurrency exchange started very disappointingly for many investors. Many heavyweights in the industry saw an opportunity for the market to be provided with fresh capital which could have lead to a rising Bitcoin price. Following the example of the Chicago Mercantile Exchange (CME) cash-based Bitcoin futures that started in 2017, many analysts saw a chance for a new bull run. However, the hopes were disappointed. At least Bakkt announced a new trading record on Wednesday.

Bitcoin futures volume on Bakkt reaches all-time high

Bakkt recorded a 796% increase in trading volume on Wednesday compared to the previous day (25 contracts traded vs. 224). Compared to the all-time high on 27. September 2019, the trading volume increased by 25%. This development shows that more and more investors are gradually taking advantage of the new financial product.

Some industry experts, such as Tom Lee (founder of Fundstrat), view the current development positively. According to Lee, the demand among institutional investors continues to rise, so that large investors may enter the market in the near future. However, he points out that Bakkt’s Bitcoin futures are still very young and that further market movements have to be observed before conclusions can be drawn.

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On Wednesday, the Bitcoin price suddenly rose within an hour from just under $8,200 to a price of $8,600. Some members of the Bitcoin community saw a clear correlation between the increase in the trading volume of Bakkt’s Bitcoin futures and the rise of the Bitcoin price. However, only 224 Bitcoins were traded on Wednesday at just under USD 1.9 million.

In comparison to the crypto market as a whole, the trading volume is very low. It is therefore doubtful whether there is a correlation, but it can neither be confirmed nor rejected.

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CFTC Chairman forecasts launch of ETH futures

The Security and Exchange Commission (SEC) confirmed earlier this month in a report that Bitcoin is not a security. Heath Tarbert, Chairman of the Commodity Futures Trading Commission (CFTC), confirmed at the Yahoo Finance All Markets Summit that Ethereum is also not a security and therefore does not fall under the American Securities Act. During the event Tarbert also announced that the market was ready for Ether Futures.  However, he did not give an exact date or a foreseeable period.

However, these developments show that the crypto market has matured and new crypto financial products are gradually entering the international financial markets.

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About Author

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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