Curious how Bakkt is doing since the launch?
Bakkt launched exactly a week ago, how have things been going?
In a word, slow.
Bakkt launched on September 23rd to fairly tepid results.
By now you have likely heard how the volumes came in very light on that first trading day, much lighter than some were expecting.
(Though, I would argue their approach of starting slow and gradually ramping up is likely the better approach)
Either way, many painted the large bitcoin drop at least partly due to the meager open of Bakkt futures.
How have things been going since then?
Well, not much better thus far.
On Friday of last week Bakkt saw its largest volume yet of 166 contracts change hands:
(Source: https://twitter.com/BakktBot/status/1179021154079502337)
By comparison, the CME bitcoin futures products trade close to 7k contracts per day.
It gets even worse when you look into the details...
The Bakkt contracts are for 1 bitcoin, while the CME contracts are for 5 bitcoin each.
That means that 166 contracts equates to about $1.3 million dollar volume at current bitcoin prices, while the 7k CME contracts equates to about $280 million at current prices.
Not even in the same ball park!
Don't be too concerned just yet...
Several people in the industry have said they are not concerned about the low volumes just yet.
In their view, starting slow and ramping up would be far better than jumping out of the gate with high volumes only to have the volume fizzle out a couple months later.
They are guessing that Bakkt will slowly start adding clients and that the volumes will start picking up over the coming months.
My guess is that traders will also move from the CME product to the Bakkt product eventually as most prefer a physically settled product, it will just take some time.
After all, these things take time before we can fully judge them.
Stay informed my friends.
-Doc
Just goes to reinforce my opinion that people in crypto are too short term focused and would do better if they started looking more long term.
Yep, it seems it is going to have to be that way whether we like it or not. Blockchain development is slow moving in general, regulations have been slow, tax clarity has been slow... all amounts to investors in crypto having to be extremely patient.
That! Indeed!
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Bakkt growth will take time, the great news is, it's another option for the Big Money to enter the crypto space through...what I really like is Bitcoin is the settlement.
You mean the physical delivery?
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