Though Bakkt made a debut on the crypto market on a back foot, the company is now seeing a massive demand for its Bitcoin futures.
The platform recorded a trading volume of $10.3 million on October 25, after executing orders for 1183 physically-settled Bitcoin contracts.
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The jump was massive as on the previous day, it only registered a trading volume of $2.5 million, meaning a surge of 257 percent in demand in a day.
ICYMI: Friday’s Bakkt Bitcoin Monthly Futures:
Traded contracts: 1183 (+257%) (New ATH )
Day before: 331
All time high: 1183
*bleep blop* tip sats: https://t.co/TF6sNUwWpO pic.twitter.com/xor4Q0fNxc
— Bakkt Volume Bot (@BakktBot) October 26, 2019
The Intercontinental Exchange (ICE)-subsidiary introduced Bitcoin futures in the United States’ market last month after a tussle with the regulator for approval. Being physically-settled, this is mitigated the settlement risks of cash-settled contracts offered by CME Group in the same market.
However, the start for the company was a bit dim, as in the first 24 hours of the launch, only 71 contracts were traded on the platform.
Though the daily trading of Bakkt’s contracts was below $1 million for most of the days, the volume spiked on October 23 amid the sudden drop of Bitcoin’s value to below $7,500.
The trend on the spot market, however, reversed with the unaccepted speech of Chinese President Xi Jinping on Friday, howling for re-embracing digital currencies. This created a stir among the speculative traders and resulted in a massive surge in the cryptocurrency market.
Traders are also betting big on the futures market with the chances of Bitcoin adoption by China, which is clearly reflecting on the Bakkt’s trading volume.
Meanwhile, Bakkt is also set to introduce options contracts for Bitcoin futures in December to compete with similar prospective by its market competitor CME Group. However, unlike futures contracts, the company will provide options for both cash and physical settlement for its upcoming contracts.