Bakkt Flops on Its First Day with Embarrassing Trading Volume, but Bitcoin Bull Brian Kelly Remains Positive About Its Long-Term Potential

Libra Coin News
Tue, 09/24/2019 - 05:37
Alex Dovbnya
Bakkt trades only 72 BTC on its first day, but it might be way too early to call it a flop, according to Brian Kelly 
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Despite high expectations, Bakkt’s much-anticipated launch ended up in the flop territory with only 72 BTC (around $701,000 at press time) traded during the first day.

While these numbers are undoubtedly underwhelming, Bitcoin proponent Brian Kelly recently opined that Bakkt might eventually succeed in the long-term.

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A big nothingburger

Bakkt, which is helmed by Jeffrey Spencer’s Intercontinental Exchange, offers physically-delivered Bitcoin futures, which is a completely novel product. However, with less than $1 mln worth of contracts at the time of writing, the demand might not there.

For comparison, Chicago-based CME’s first-day volumes reached 5,298 BTC when it debuted its cash-settled Bitcoin futures back in December 2017.

As reported by U.Today, the number of CME’s futures contracts has experienced a 132 increase compared to 2018.     

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A different perspective

During his recent appearance on CNBC’s “Fast Money,” Kelly states that he doesn’t expect Bakkt to be a “massive catalyst,” but he is certain that it looks good from a long-term perspective.

When asked by longtime anchor Melissa Lee whether institutional investors plan to put their money in Bitcoin, Kelly answered that Bakkt’s custody solution would bring them onboard.   

“Because they have this physical storage, which would be electronic like cold storage, this is like a custody solution, so it will bring those institutions in that need that custody solution.”

BK also points out that it will tie Bitcoin to the futures, which will reduce the coin's volatility.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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