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.
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.
Bakkt, first day volumes: 71 bitcoin.— Alex Krüger (@krugermacro) September 24, 2019
CME, first day volumes: 5298 bitcoin.
That's a 75x difference.
As reported by U.Today, the number of CME’s futures contracts has experienced a 132 increase compared to 2018.
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.