From December 2019, users of the Bakkt platform can also trade contracts with bitcoin options. Although Bakkt started very slowly, the trade volume is now starting to increase. And extra products can only do the trade volume well.
Available from December 9, earlier than CME
According to a medium post from the CEO of Bakkt Kelly Loeffler, the platform will launch the new derivative on December 9. She writes:
“We are committed to providing trust, the option contract is an example of one of the many products we develop for regulated markets.”
Loeffler also described the launch as “a first in the sector.” The CME Group also wants to offer a similar product, but only from the beginning of 2020. It looks like Bakkt will be just a few weeks earlier.
But why options?
But what are options anyway? Options on futures contracts offer the trader the option of setting a price at which he wants to buy or sell a futures contract when it expires. In this way traders can better cover themselves, as a kind of insurance against a rising or falling bitcoin rate.
Loeffler claims that the options have been added in response to customer feedback. She describes the launch of the new derivative on the platform as:
“… another important step in the development of this asset class for institutional investors, their clients and investors.”
Can Bakkt still live up to the hype?
The physically completed futures contracts of Bakkt saw the light of day in September this year. The expectations were high, perhaps too high, because Bakkt could not live up to the hype at first.
Large parts of the cryptocurrency community hoped that the launch of Bakkt would cause some sort of institutional madness that would bring prices to new record highs. On the contrary, the volumes were low and the bitcoin price fell largely since the platform went live.
However, the trading volume on Bakkt has been steadily increasing in the last few days. On October 23, the volume reached the highest point ever with $ 4.81 million.
ICYMI: Wednesday’s Bits Bitcoin Monthly Futures:
? Traded contracts: 640 (+ 653%) (New ATH ?)
Before Day before: 85
? All time high: 640* bleep blop * tip sats: https://t.co/TF6sNUwWpO ? pic.twitter.com/cUG9qzf47E
– Bakkt Volume Bot (@BakktBot) October 24, 2019
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