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Highlights

  • The much awaited Bakkt’s bitcoin futures were launched last week
  • It was launched to provide bitcoin exposure to institutional investors
  • But for some reason the seems to be a shortage of demand

Bakkt, the subsidiary formed as as sister company to the NYSE to provide physical bitcoin-backed futures exposure to institutional investors launched last week just provided the numbers fir the first week and they don’t look so encouraging.

Bakkt was supposedly one of the most hyped projects in and around finance as it promised physical bitcoin backed futures instead of a digital alternative. It has one major difference versus the other futures offerings that are already live; the fact that its contracts are physically backed by real bitcoins. That means when investors buy contracts through Bakkt, they are buying actual BTC for that contract.

When compared with the CME Bitcoin future opening, Bakkt opened to a relatively stable market. The conditions before the launch were just about right. And yet Bakkt failed to get the attention it hoped to have got.

In the first week of its trading life, about $5.6 million worth to BTC contracts were bought. Surprisingly, the Bakkt platform managed only 2 BTC volume of Bitcoin daily futures contract trading in Week 1.

Looking at the long run, Bakkt’s regulated futures market is a historical development in Bitcoin history as it allows institution to get the confidence and physical contracts they need. There is no doubt in the platform’s ability to increase the public profile of Bitcoin as a trustworthy asset and gain institutional investors trust.


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Sudarshan M

Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it didn’t take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject. He is currently a researcher at the University of Nicosia. He is also the author of two research papers and a book on Blockchain’s future in Education titled: An Academic Overview of Blockchain - Applications in Educational Institutions. Sudarshan is an entrepreneur, blogger, educator, researcher and an avid proponent of Dogecoin. Such coin, Much wow.

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