It seems that the now-infamous China pump of 2019 has awoken something in Bakkt’s Bitcoin futures. On the day of the jaw-dropping 42% pump last week, the exchange’s futures saw more than $10 million worth of volume traded, a new all-time high for the fledgling market.
Since then, this volume has persisted. This growth, however, cannot be conclusively pinned to the news that Chinese President Xi Jinping had endorsed blockchain technologies, which led to growth in BTC, blockchain stocks, and other assets tied to this space.
Bitcoin Futures Market Swelling Again
According to a report from Bakkt Volume Bot, a Twitter robot dedicated to following trends in its namesake’s Bitcoin market, the past week has been undeniably strong for Bakkt. Again, since last Friday’s absolutely monumental surge from $7,300, the volume has persisted, trading millions of dollars worth of contracts a day, rather than under $1 million worth.
Daily summary of Friday's Bakkt Bitcoin Monthly Futures:
📈 Traded contracts: 623 (+81%)
📅 Day before: 345
🚀 All time high: 1183
— Bakkt Volume Bot (@BakktBot) November 2, 2019
Of course, a daily volume average of $7 million over the past week isn’t stellar, especially seeing that this market sees hundreds of millions worth of trades a day, but it’s a start — a step in the right direction, so to speak.
It isn’t only Bakkt’s market that is signaling increased institutional interest. As reported by NewsBTC previously, as of mid-October, institutions had increasing open Bitcoin positions on the CME’s market. Institutional accounts — pension funds, endowments, insurance companies, mutual funds & portfolio/investment managers with institutional clients — in fact, had 1,100 BTC worth of open contracts as of the time of the article’s publishing.
Related Reading: Analyst: Bitcoin More Likely to Surge 50% to $14,000 Than Fall
ICE CEO Optimistic About Bakkt’s
Bakkt’s strong week comes as the chief executive of the Intercontinental Exchange (ICE), the firm behind the New York Stock Exchange and much of the crypto upstart’s operations, made an optimistic comment.
According to fellow industry publication The Block, in the financial institution’s latest earnings call, Jeffrey Sprecher noted in response to a question regarding Bakkt that there is high institutional demand for Bitcoin derivatives products, as that is a way to gain exposure to Bitcoin in a way that is compliant with U.S. regulators:
“All [kinds] of financial institutions are talking to us and looking at this and trying to figure out where this fits and what the global regulators are going to think about this and so on and so forth. So there’s a tremendous amount of dialogue around it.”
Related Reading: Bitcoin Monthly Candle to Close Around $9,300: Bullish or Bearish?
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