- The record trading volume was above $200 million
- Bakkt Bitcoin futures traded at a new all-time high on Tuesday
- Bakkt’s futures contracts are settled in Bitcoin
Bakkt Bitcoin futures gained a new daily trading volume record that is larger than the previous by 36 percent.
On September 16, Bakkt stated that above $200 million valued BItcoin futures contracts have been traded in one day. The transaction amounts were almost twice higher than the average in the first half of September.
The new Bakkt Bitcoin futures trading record broke the prior one by 36 percent
Bakkt was constantly increasing a trading volume for the past several months, actually from this year’s start. At that time, in January, its Bitcoin futures didn’t meet the expectations even though they were promoted as a possible spur for the bull market led by institutions. The fact is that there was a very modest activity in this field during January. Recently, the trading volume started to increase which could be taken as the sign of institutions’ interest for Bakkt Bitcoin futures.
Bakkt as a separate trading platform gained the record trading volume, but in comparison to larger crypto exchange platforms, it isn’t so successful. Its trading activity is still much below competitors’ trading volume. For example, Binance’s futures contracts without expiry date made over $2.50 billion in just one trading day.
Why is Bkkt Bitcoin futures trading volume lower despite the new record?
Maybe the main problem for Bitcoin futures traders is the payment method. Bakkt’s futures contracts are not settled in cash but in Bitcoin. It looks that the traders are more interested to receive their profits in cash rather than in BTC. Traders’ interest is to earn, by receiving rewards in BTC they have to sell them and get cash. So it looks like a double trading activity and more work for traders to get cash. So it isn’t surprising that only a small number of them decide to get bitcoins on the date of the contract’s expiry.
How Bkkt hit the record?
The interest of institutions increased, slightly but still did. When we compare the previous trading volume to the current, the difference is more than obvious. Slightly but steady increasing interest led to this new record. That caused the Bakkt to beat Derebit, for example, in today’s trading volume. Derebit had almost $170 million, which is a $30 million below the volume generated by Bakkt on this day.
For the past three months, Bakkt had a problem to increase the trading volume and reach $100 million on a daily basis. But finally, it overcame the issue and hit an all-time high on Tuesday trading around 16.000 bitcoin. It looks like Bakkt Bitcoin futures are taking their place in the market.