min to read

2019-09-24 14:38:07




News

Analyst: Bakkt trading volume is insignificant compared to CME exchange

BAKKT FUTURES

min to read

2019-09-24 14:38:07

According to the observations of analyst Alex Kruger, for the first day the volume of trading Bitcoin futures on the Bakkt platform was 75 times lower than on the Chicago Mercantile Exchange (CME) for the same period.

According to the observations of analyst Alex Kruger, for the first day the volume of trading Bitcoin futures on the Bakkt platform was 75 times lower than on the Chicago Mercantile Exchange (CME) for the same period.

 

 

“Bakkt, first day volumes: 71 bitcoin. CME, first day volumes: 5298 bitcoin. That's a 75x difference”.

 

However, it is worth noting that settled futures are presented on the Chicago Mercantile Exchange, and deliverable futures are presented on Bakkt.

 

Kruger added that in financial markets, in the vast majority of cases, traders do not use the possibility of physical delivery of the underlying asset.

 

 

In general, the analyst is convinced that Bakkt will contribute to the institutionalization of the market. However, taking into account the tiny trading volume, the launch of the platform has not yet met the expectations of many market participants.

 

 

However, representatives of the regulated exchange do not seem to lose optimism. Thus, in a conversation with CNN, Bakkt's Chief Operating Officer and former General Manager of Coinbase, Adam White expressed confidence that over time, new tools will gain popularity by becoming available to retail investors.

 

 

“Bakkt is really designed for the institutional trader. So this is a futures contract. That said, we expect this futures contract to trade through retail brokerages as well, so retail customers can trade this contract ”, said White.

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