Bitcoin Futures trading platform Bakkt announced record figures for its Bitcoin futures contracts on July 29, just a day after the previous record was smashed.
It’s quite a turnaround from Bakkt after falling into the background and seemingly becoming the forgotten man of the Bitcoin exchange world.
Bakkt Bitcoin Futures Smashes Record, Again
Intercontinental Exchange (ICE) subsidiary Bakkt, which many in the Bitcoin space claim to be a flop, smashed its old record on July 28 by a staggering 85%.
The July 28 record of 11,506 contracts was then smashed again just 24 hours later as a new record of 11,706 contracts were traded yesterday, July 29.
The surge in contracts followed the upswing in the Bitcoin price, which saw the leading cryptocurrency reach $11,280.
The announcement came via Bakkt’s Twitter account:
“Talk about momentum! We beat yesterday’s record with 11,706 Bakkt Bitcoin Futures traded today – that’s over $125MM of bitcoin.”
An uptake in futures contracts isn’t surprising, but the fact that it was smashed by almost double and then beaten again just the next day, shows the interest in physically-settled BTC futures is there.
Bakkt’s physically-settled contracts are completely traded and paid out in BTC, whereas most other futures contracts are settled fully in USD.
And the thing with the Bitcoin settled contracts is that it takes the actual BTC off the market for a month, which just the last two days has seen over 23,000 Bitcoin.
Bakkt Back In Business?
It’s positive news for Bakkt, as many critics have been quick to condemn the institutional exchange’s volume.
Bakkt, which launched in September 2018, was hailed by some as ‘the Bitcoin saviour’, and has had disappointingly low volume.
With the interest in Bitcoin and the market beginning to feel bullish, for Bakkt to obliterate its old record and then beat it again, just shows the interest in physically-settled Bitcoin futures is there.
Bakkt was supposed to be launching some kind of partnership with Starbucks, which many rumoured it to be accepting BTC at the global coffee shop chain, but things have been quiet on that front. Although, Bakkt are said to be still working on it and their payment app is expected soon.
Bakkt also announced it was partnering with Mike Novogratz’ Galaxy Digital to offer a trading and custody service for institutional investors.
According to the announcement, the partnership enables both companies the capability to offer clients best-in-class efficiency with onboarding, trade execution and storage of their clients digital assets.
Speaking at the announcement, Tim Plakas, Head of Sales at Galaxy Digital Trading said, ‘We designed this partnership to service the uptick in demand our two firms have received from traditional asset managers seeking access to physical Bitcoin.’
And the new partnership is already offering a safe and well-regulated route into physical Bitcoin access, which according to the announcement has already proven successful in the macro hedge fund space.
Expect Bakkt To Keep Smashing Records
Records are there to be broken, and it has taken Bakkt a long time to announce anything substantial.
But over 23,000 BTC locked up in just two days is a giant leap. It might not be many in the grand scheme of Bitcoin’s 18,500,000 circulating supply, but it proves there is demand for the service.
And as we roll into the next bull market, we should expect more bigger partnerships, such as the arrangement with Starbucks to finally bear fruit.
Author: Tommy Limpitlaw