Bitcoin: Bakkt Futures reach new record

The monthly Bitcoin Futures of Bakkt have reached a new record volume, after the Bitcoin (BTC) returned to volatility in the market and the BTC price by hundreds of dollars per day moving. The Bakkt-volume coincides with a day-long increase in the activity on the BTC futures markets and the spot markets.

The Bakkt Bitcoin exchange reported yesterday and the day before yesterday, a number of new records and reached shortly after the establishment of over 3,150 contracts, a new record. Yesterday, 27. November has seen Bakkt for the first time, over 5,000 BTC Futures contracts. The futures market of Bakkt not recorded but only records in the BTC contracts, but also in the Open Interest, which stood yesterday at 4.16 million US dollars. The next expiry date for the Futures is December 2019. At this time, however, it is uncertain whether or not physical delivery is accepted or the Futures to the next contract to be transferred.

Daily summary of Wednesday’s Bakkt Bitcoin Monthly Futures:

📈 – Traded contracts: 5671 ($42.52 million, +148%) (New ATH 🚀)
🚀 All time high: 5671 (11/27/2019)
💰 Open interest: $4.16 million (+6%)

Follow @BakktBot for updates – Sats welcome @ https://t.co/TF6sNUwWpO pic.twitter.com/wrX2qnLnOp

— Bakkt Volume Bot (@BakktBot) November 28, 2019

Physically settled BTC Futures remain despite the exploding volume low

The volume of BTC Futures of Bakkt has risen in recent weeks since the introduction exponentially. The euphoria that builds up as a result of the growing institutional interest in the Bitcoin market, should be mitigated, according to analysts, given the low volume of physically settled month contracts on Bakkt something.

According to Alex Krüger, a Colombian Economist and crypto-trader, it should be considered that the increase in volume behavior, since it depends on the volume of physical Bitcoins. Unfortunately, many institutions do not take advantage of the aspect of the physical delivery of Bakkt – what is literally the deciding factor that differentiates you from the CME.

The Economist and Analyst Alex Krüger noted on Wednesday that Bakkt, although recorded exponential growth in volumes, but since the 14. November has delivered only 17 Bitcoin for holders of Bitcoin-month contract. This is a far cry from the hundreds of BTC values of the “Open Interest”, the Bakkt investors currently have. This is not relevant, since Bakkt this differs so much from the CME. It is only paper is almost trade, said Kruger:

The volume is growing exponentially. From a low base, but still fast growing. But the special feature of Bakkt for cops is not the volume, but the number of Bitcoins that will be physically delivered. Looking at the data, 14 were on. November 17-month contracts are physically settled.

The daily BTC contracts are typically for traders that BTC to buy and the equipment to be stored in a regulated warehouse. Since September, were Bakkt in the daily BTC Futures two of the lucky days, in each of which a BTC was traded, for a total of Zero contracts settled.

Zero everyday, with the exception of two days in September, in which 1 bitcoin what is delivered each day.

The more regulated the volume, the better. Bakkt’s growth is very positive. Yet keep present Bakkt is not that different from the CME. It is almost entirely paper trading.

— Alex Krüger (@Krug macro) November 27, 2019

Why the Bitcoin Futures of Bakkt are so important

Sure, Bakkt may thus appear as another Bitcoin futures market, however, could have a Bakkt in the coming years is very positive to the crypto currency market. The Analyst PlanB said that Bakkt provides the market with liquidity by providing investors with “an additional opportunity to sell your investment, a further Exit”. He added that this additional Exit “could be a reason to buy at all”.

In this sense, Bakkt could create an increasing positive feedback loop for the market liquidity. Institute deepen Bitcoin Futures on the basis of a robust Custody-supply, and increased market liquidity, the liquidity is growing with the entry of new players in the market, which is why, finally, more institutions are investing.

Featured Image: YamabikaY | Shutterstock