Bakkt completed its first week with poor trading volumes. The much-anticipated launch of Bakkt’s physically settled futures contract failed to provide any boost to the BTC market. Several analysts had speculated that daily and monthly BTC futures contracts would expand the BTC market to new boundaries.
However, experts believe it might be too early to jump to any conclusion. But the poor performance by Bakkt also raises an important question of whether institutes are ready to adopt bitcoin or not. Earlier JPMorgan analysts claimed that the launch of ICE-backed exchange might have triggered the crash in the price of BTC. But they also acknowledged that physically settled futures are essential for the maturing industry.
The launch of Bakkt is also being compared with the launch of CME’s futures contracts. The latter recorded much higher volumes in the first week than Bakkt. However, CME’s contracts are settled with cash and Bakkt’s with BTC. CME’s Tim McCourt recently said that there is a growing institutional interest in bitcoin, but it would take time to get familiar with the market.
Bakkt, first day volumes: 71 bitcoin.
CME, first day volumes: 5298 bitcoin.
That’s a 75x difference.
— Alex Krüger (@krugermacro) September 24, 2019
Launch of Bakkt has been a hot topic of discussion among the crypto community. Some have already judged it as a failure while others are positive about its future. Let us know in comments, what do you think about the Bakkt’s performance so far?