Record-high Bakkt Bitcoin delivery exposes institutional frenzy for BTC

Saturday 17 October 2020, 7:43 AM AEST - 6 days ago

Data from Arcane Research shows Bakkt Bitcoin exchange saw another record-high month from Sept. 20 to Oct. 20. This follows a noticeable rise in institutional demand for Bitcoin (BTC) from public companies in recent months.

2e352671-47c2-4cf2-a1dc-218ad80ae48f.pngBitcoin delivery on Bakkt. Source: ICE, Arcane Research

Bakkt, the digital asset payment platform and derivatives exchange, is tailored for institutional investors in the U.S. It is operated by Intercontinental Exchange, the parent company of the New York Stock Exchange.

When the volume of the Bakkt Bitcoin futures market increases, which physically settles Bitcoin contracts, it typically demonstrates growth in institutional appetite for digital assets.

CME, LMAX Digital, and Bakkt volumes show the institutional Bitcoin market is growing rapidly

8bd3b874-178c-4b49-a9a0-3a005d71ef5a.pngBTC futures volume by exchange. Source: Digital Assets Data

As shown above, Cointelegraph and Digital Assets Data reflect a significant surge in futures volumes across multiple exchanges in the month of October.

According to the analysts at Arcane Research, 400 BTC contracts are set to expire in October at Bakkt. Month-over-month, the data shows a 14% jump from September.

Bakkts volume and open interest are important in gauging institutional activity because it is one of the three widely utilized platforms by institutions alongside LMAX Digital and CME.

As such, Arcane Research said that the substantial increase in futures contract deliveries on Bakkt signifies rising institutional demand. The researchers

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