According to Coindesk's October 1 report, the much-anticipated Bakkt exchange just opened its Bitcoin futures contract last week, but a week has passed, with a total transaction volume of only $5 million, and weekly trading of contract products. The amount is less than 5 copies.
(Source: pixabay )
In order to open up the cryptocurrency market, the Intercontinental Exchange established Bakkt last year. According to data provided by Bakkt, after the opening of the Bitcoin daily contract and monthly contract on September 23, the weekly trading volume of the exchange's bitcoin futures contract was approximately 623.
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Each Bakkt futures contract represents a bitcoin. According to the current price of Bitcoin at $8,322, the exchange's total trading volume for the week is slightly more than $5 million.
In contrast, Bakkt's competitor, the Chicago Mercantile Exchange (CME), traded about 4,099 bitcoin futures contracts only one day on Friday. Each futures contract on the Chicago Mercantile Exchange represents 5 bitcoins, with a one-day trading volume of $165 million.
Bakkt's daily futures contract did not perform well, with less than five transactions in the first week.
Previously, Bakkt executives had said that the physical delivery of bitcoin contracts offered by the exchange was a milestone in the cryptocurrency industry, which catered to the needs of large institutional investors. But so far, large institutional investors have been slow to buy bitcoin and other digital assets.
Bakkt said the contract it offered should attract institutional investors such as hedge funds and other fund managers, because the terms of the contract require Bitcoin to be delivered when the contract expires. This feature is a distinct advantage for asset owners who wish to hedge their portfolios compared to contracts on the Chicago Mercantile Exchange where the contract is settled by cash.
CoinRoutes CEO Dave Weisberger said in a telephone interview that investors can now buy and sell Bitcoin in many ways in the market, but it is too early to say that Bakkt has no influence.
Weisberger, who has worked for many years at Citigroup and Morgan Stanley, said:
Unless there are cost or liquidity advantages, it will take time for investors to move from one platform to another. What Bakkt needs is a long stream of fine water.
Intercontinental exchange spokesman Damon Leavell said in an e-mail that the first week of Bakkt's launch, "the industry is actively involved."
He said that the contract that expired in October "is the smallest bid-ask spread in the market, which is an exciting achievement."
The bid-ask spread (the gap between the buyer's bid and the seller's bid) is considered a measure of the efficiency of the market.