Bakkt Bitcoin futures smashes daily volume record by 36%

Wednesday 16 September 2020, 2:56 PM AEST - 1 week ago

Bakkt, a regulated platform for crypto asset custody and trading owned by Intercontinental Exchange, has reported record daily trading volumes for its physically-settled Bitcoin (BTC) futures contracts.

On September 16, Bakkt announced that more than $200 million worth of BTC contracts had been traded over a single day — breaking its previous record by 36%.

According to crypto market data aggregator Skew, the record figure is roughly double the average daily volumes posted throughout September so far.

6d8ab02a-b478-4397-8230-eaf78e5766a3.pngBakkt daily Bitcoin futures volume: Skew

Despite being touted as the likely catalyst for an institutional-led bull market, Bakkts Bitcoin derivatives failed to meet the expected impact — seeing sustained periods of complete inactivity during January of this year. However, the steady increase in volume recently enjoyed by the platform suggests that institutions are now warming to it.

A point of difference for Bakkts contracts is they are supposedly physically settled in Bitcoin rather than cash. However, analysts have highlighted that most contracts traded on Bakkt are rolled over — with only a minority of traders opting to receive Bitcoin when the contracts expire.

Despite the new all-time high, Bakkts volumes pale in comparison to the trade activity on the largest cryptocurrency exchanges. Over the past 24 hours, Binances BTC-USDT perpetual contract — a futures contracts with no expiry or settlement date — drove $2.65 billion in trade, while the exchanges 74 futures pairings pushed $5.96 billion collectively.

Huobis 103 futures pairings generated $5.48 billion in trade over the past 24 hours, including $1.28 billion from the platforms BTC-USD perpetual contract. OKExs BTC-USD perpetual contracts sa ...

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