Bitcoin futures exchange Bakkt was launched three weeks ago. The first messages were not too positive, because the trading volume could not keep up with the hype. But Bakkt now seems to come to life.
Bakkt is blamed for the crash
So the start was not too good. On some days, only a few bitcoin contracts were traded. And on a busy day maybe 25. Several analysts were there as the chickens to blame Bakkt for the recent crash of the bitcoin course.
From one day to the next
But after days of predominantly horizontal movements, the trading volume of monthly bitcoin contracts suddenly increased. Last Wednesday, 224 contracts for monthly bitcoin futures were traded on Bakkt. A day before that there were only 25. An increase of no less than 796 percent!
ICYMI: Monday’s Bits Bitcoin Monthly Futures:
? Traded contracts: 224 (+ 796%) (New ATH ?)
? Day before: 25
? New all time high: 224
Follow @BakktBot for real-time updates. pic.twitter.com/sAxzCOQXFq
– Bakkt Volume Bot (@BakktBot) October 10, 2019
However, the peak turned out to be short-lived. Trading volumes fell again yesterday and today. At the moment there are only 80 monthly bitcoin futures contracts on the trading floor.
Role of rejection ETF
Christopher Phan, chief technology officer at Interdax, a crypto-derivative platform, says traders responded to news about the rejection of Bitwise’s bitcoin ETF: “Now that the result is clear, volumes have fallen again.”
Smart arbitrage traders also seem to play a role: “When someone trades on one stock exchange, they can hedge their risk on another stock exchange. That’s why you also see a certain correlation between stock markets, “says Phan. In this case, Bakkt was a beneficiary of this type of activity because it received money from traders after the SEC announced its ETF decision.
The new normal is just boring
The return to normal is a reassurance for other scholarships. However, it is problematic for Bakkt.
On average, 139 monthly futures contracts are traded per day on Bakkt. The size of each contract is equal to one bitcoin. On average, therefore, 139 bitcoins are traded on Bakkt every day.
Is it realistic to expect fireworks right away? Maybe we just have to be a little more patient.