Bakkt, a new venture of the Intercontinental Exchange, has finally launched its Bitcoin futures contracts on Sept. 23.
While there is a lot of excitement in the air, the cryptocurrency market remains dormant with Bitcoin (BTC) moving less than one percent over the last 24 hours.
We’re live!— Bakkt (@Bakkt) September 23, 2019
The first Bakkt Bitcoin Futures trade was executed at 8:02pm ET at a price of $10,115
Physically-delivered Bitcoin futures
CME has already asserted its dominance in the realm of cash-settled Bitcoin futures after its rival Cboe left the playing field back in March. However, Bakkt offers a completely different product – traders who bet on the future Bitcoin price moves will be able to receive their payouts in Bitcoin (hence, they are called-physically delivered).
According to eToro’s Mati Greenspan, the launch of Bakkt, which had been delayed multiple times, was the main catalyst for Bitcoin’s massive rally in 2019.
The launch of physically settled futures from Bakkt has been one of the main narratives behind the monster bitcoin rally during the first half of the year,” Greenspan told The Wall Street Journal.
Bakkt has launched its futures before LedgerX and ErisX achieved a similar feat.
Is Bakkt flopping?
At the time of writing, Bakkt has registered only 13 BTC of trading volume, which is insanely low. Of course, this amount is expected to grow throughout the day, but the afore-mentioned number is very alarming.
As reported by U.Today, the VanEck/SolidX ETF proposal was withdrawn after their Bitcoin trust showed very little demand.
VanEck cancelled their ETF after only 4 BTC worth of blocks sold.— Bryce Weiner (@BryceWeiner) September 23, 2019
So far Bakkt has doubled that to a whopping 8 BTC.
Institutional money... ain't excited.
However, one shouldn’t forget that Bakkt is the brainchild of Jeff Sprecher who is unlikely to let his first crypto venture flop.