After many delays and much anticipation, Bakkt finally launched its bitcoin futures trading contracts yesterday. The ICE backed Bakkt’s first day ended in disappointment. Only 72 bitcoins worth $701,000 were traded during the first day. The first trade happened minutes after the launch as the first contract changed hands at $10,115.
If compared to Chicago-based CME’s first-day, Bakkt’s numbers are nothing. On the first day of CME, 5298 bitcoins were traded that is 75 times more than Bakkt. However, many experts believe its too early to judge the company’s future. CEO and CIO of Singapore-based Three Arrows capital tweeted that most regulated futures contracts usually see a low adoption on the first day. He added that all brokers are not ready to clear contracts.
Bakkt will be likely first a trickle and then a flood. The reality is that most regulated futures contracts get low adoption on day1 simply b/c not all futures brokers are ready to clear it, many ppl want to wait and see, the tickers are not even populated on risk systems, etc.
— Su Zhu 🦁 (@zhusu) September 23, 2019
Bakkt’s launch was hailed as a big positive for the bitcoin market. Some analysts even called the Bakkt as the most bullish development in the history of bitcoin. However, it is too early to jump to a conclusion, but Bakkt did not get off the ground as they would have liked.
CME bitcoin futures traded $460 million on its first week. Current volume is around $700 million. The Van Eck fake ETF traded $0 on its first week.
How much volume will Bakkt attract is a key variable for the week ahead. Would you expect Bakkt to flop or to launch successfully?
— Alex Krüger (@krugermacro) September 22, 2019
Bakkt’s physically traded bitcoin futures are one of a kind as they are settled with bitcoin payments, unlike CME where contracts are settled with cash. Let us know in comments what do you think about the launch of Bakkt, and where is it headed?