Bakkt Bitcoin Futures Skyrocket; Will High Trading Volumes Last?
After a slow start, The Bakkt Bitcoin futures exchange is finally showing it’s true potential. After weeks of stagnant movement, the platform saw trading volumes sky rocket to new highs. While many Bitcoin hopefuls believe this signifies the start of a new revolution, others are wondering if the highly anticipated platform can keep the momentum moving in a positive direction.
Bakkt trading volumes up 800%; can this take Bitcoin futures mainstream?
Bakkt Bitcoin futures exchange, backed by the New York Stock Exchange (ICE), has many reasons to celebrate today. Immediately after launching, Bakkt failed to live up to the hype with weak trading volumes. The expectations failed so dramatically that analysts were even suggesting Bakkt might contribute to a new crash for the entire Bitcoin market. That’s a far cry from months ago when many were saying Bakkt is the symbol of a new mainstream crypto revolution.
Fast Forward to October 11, 2019 and finally,we are seeing the platform live up to it’s true potential. Trading volumes skyrocketed roughly 796% percent from the previous day. An average of 224 contracts for monthly Bitcoin futures occurred last wednesday, compared to 25 contracts the day before. The celebration was short lived though. The day after the surge, contracts traded fell back down to 109. Was this spike a fluke or was this just a preview of greatness to come?
Wall Street is still not 100% on physical Bitcoin futures
Bakkt competitor CME Futures Group has already shown that Bitcoin futures can be a profitable business. The Chicago-based exchange reports that investors are trading an average of 5,121 contracts with an average contract size of five bitcoins. This proves the model works, but why can't Bakkt produce similar numbers?
Mati Greenspan, senior market analysts at eToro believes that “Wall Street still doesn’t understand the concept (of physically-settled Bitcoin futures).” That being said, the most important competitive advantage of Bakkt contracts is that investors actually own the Bitcoin. Yet, this topic of “Bitcoin ownership” is still new to many traditional Wall Street types.
Patience is the answer with Bakkt; in the meantime, take a BTC loan with YouHodler
The key to Bakkt’s success may be patience. Large, American corporations will trust an ICE backed exchange far more than some offshore exchange like Binance, Bitmex, etc. Yet, these corporations and their investors, still need to do more research in Bitcoin investing. Until that happens, we are likely to stay in this “crypto purgatory” we have been experiencing. There is a silver lining to this though.
Now is the perfect time to start accumulating more Bitcoin before the price skyrockets later on. YouHodler recently released the ability to receive BTC loans. BTC loans backed by altcoins are a fantastic way to leverage Bitcoin, benefit from it’s growth and secure your altcoins with Bitcoin. YouHodler is the only platform in the industry with BTC loans and they are available right now with no rollover fees like you may find on other exchanges.
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