Highlights

The much awaited Bakkt’s bitcoin futures were launched last week

It was launched to provide bitcoin exposure to institutional investors

But for some reason the seems to be a shortage of demand

Bakkt, the subsidiary formed as as sister company to the NYSE to provide physical bitcoin-backed futures exposure to institutional investors launched last week just provided the numbers fir the first week and they don’t look so encouraging.

Bakkt was supposedly one of the most hyped projects in and around finance as it promised physical bitcoin backed futures instead of a digital alternative. It has one major difference versus the other futures offerings that are already live; the fact that its contracts are physically backed by real bitcoins. That means when investors buy contracts through Bakkt, they are buying actual BTC for that contract.

Bakkt's first week volume was approximately $5.8 million.



It managed to get traders interested in 5 bitcoin worth of its physically delivered daily futures. Quite the successful launch. — Alex Krüger (@krugermacro) September 29, 2019

When compared with the CME Bitcoin future opening, Bakkt opened to a relatively stable market. The conditions before the launch were just about right. And yet Bakkt failed to get the attention it hoped to have got.

In the first week of its trading life, about $5.6 million worth to BTC contracts were bought. Surprisingly, the Bakkt platform managed only 2 BTC volume of Bitcoin daily futures contract trading in Week 1.

Looking at the long run, Bakkt’s regulated futures market is a historical development in Bitcoin history as it allows institution to get the confidence and physical contracts they need. There is no doubt in the platform’s ability to increase the public profile of Bitcoin as a trustworthy asset and gain institutional investors trust.