Institutional Interest On The Rise As Bakkt’s Bitcoin Futures Volume Increases Continuously
Bitcoin’s been on a downtrend recently. the worth dropped from around $8,700 to its current level of $6,700, losing over 200th in mere a couple of days. Despite the too negative sentiment lurking amid the cryptocurrency community, however, excellent news would possibly stem from the very fact that institutional interest seems to air the rise. Bakkt, the Bitcoin futures trading platform geared for institutional investors, has seen a steadily increasing trading volume.
Bakkt is the Bitcoin futures trading platform launched by ICE – the parent company of the new york stock market. It delivers physically-settled Bitcoin futures, that means that traders receive an actual Bitcoin at the expiration of the contract, instead of its cash equivalent.
This was thought-about to be a large move for the cryptocurrency market, however, the latter didn’t respond well to Bakkt’s launch. In fact, the platform started with minimal trading volume, whereas the price tanked days later. notwithstanding, the quantity has been increasing ever since.
Today, Bakkt saw a complete of 1166 contracts listed, which is valued around $7.84 million as every contract is worth 1 BTC. This represents a rise of the around terrorist organization compared to yesterday’s volume. And it’s value noting that the day isn’t over, however, which suggests that the on top of the range is probably going to extend.
The current all-time high, according to Bakkt Volume Bot, is 2728 ($20.3 million) contracts and it took place a couple of days ago on November 23rd.
As seen in the chart above, the volume is increasing progressively. Bakkt is oriented towards institutional investors. As such, the continuously rising trading volumes could be a sign that the interest of institutions is also picking up.
Another product that's additional back-geared towards larger investors is that the Grayscale Bitcoin Trust. the corporate recently revealed its Q3 report and it outlined that the trust saw $171.7 million in inflows for that period.
According to the discharge, this was the product’s best quarter in terms of inflow. more interestingly, though, the worth of every share from GBTC currently costs $9.27. as long as every share represents 0.0009144BTC, this suggests that investors are happy to pay a premium of around 39th to gain exposure to Bitcoin’s value through Grayscale’s product.
The reason for that's fairly straightforward – by owning GBTC shares, investors receive exposure to Bitcoin’s value, without having to fret concerning storage and management. In any case, it will seem that establishments are setting out to dip their toes within the business.