Bakkt Is Pulling a Few Unexpected Punches
Recently, it was reported that the institutional crypto trading platform owned and governed by the Intercontinental Exchange (ICO) was doing rather poorly as of late, having traded zero bitcoin options since mid-June. Now, more than 30 days later, that still hasn’t changed.
However, the platform has witnessed a surge in bitcoin futures trading. Just last Monday alone, Coin Market Cap reported a total of $114 million in BTC futures traded on Bakkt, posting the highest number for the platform in a single day.
To say that Bakkt has had something of a shaky history would be a bit of an understatement. First off, the platform was initially set to emerge for customers to enjoy beginning at the end of 2018, but the venture was delayed by roughly one year due to regulatory issues. When it finally did debut in September of 2019, the platform experienced a very dismal opening weekend in which very few people took part in futures trading.
As a result, bitcoin took a nasty dive, dropping from the mid-$9,000 range to about $8,100 within just a matter of minutes. While bitcoin ultimately surged by the time November came about – it eventually went back up to the $9,000 range for a brief period – Bakkt’s influence proved too strong for the currency, and the world’s number one crypto asset by market cap still withstood further falls that took the currency down into the low $7,000 range by the end of the year.
Even when trading picked up slightly for the platform, things didn’t really turn around for the globe’s leading digital currency.
For the most part, Bakkt has not managed to attract the same levels of attention and activity as platforms such as the CME Group in Chicago. That said, it has enjoyed little spurts along the way since it opened roughly ten months ago, and this appears to be one of them. It’s hard to know if bitcoin is rising thanks to Bakkt trading, or if Bakkt trading has grown more popular due to the surging price of BTC.
A Massive Jump Is in the Books
Either way, the currency surge represents a new record for a platform that initially began on a very slippery slope. This sudden jump to $114 million represents a near 84 percent jump from its previous all-time high, which was set in December of last year.
On average, the daily trading volume for Bakkt has amounted to roughly $14 million or 1,726 BTC. This means that the volume expanded by approximately $100 million from one day to the next, but while the number may appear large on paper, Bakkt trading is still considerably less than the levels witnessed by platforms such as Huobi, Binance and various others.