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Bakkt: Trading Volume for Bitcoin Futures Hit Just $5 Million in First Week

October 1, 2019 at 10:53 AM | By Jit Sutradhar Feature

Bitcoin highly anticipated contract Intercontinental Exchange futures met only $ 5 million in total traded – and your daily intake less than five contracts negotiated through its first week.

According to the Bakkt division of the bag, created last year by the Atlanta-based company as a new market for digital assets, some 623 monthly bitcoin futures contracts changed hands last week. Both monthly and daily contracts debuted on September 23.

Each futures contract represents one of bitcoin Bakkt, so the total traded volume works out to just over $ 5 million based on the current price of $ 8,322.

In comparison, some 4,099 futures contracts traded on Friday bitcoin only rival exchange operator CME based in Chicago, whose market opened in 2017. And the CME futures contracts represent five bitcoins, for a volume of operations $ 165 million in the same day.

Daily futures contracts Bakkt fared even worse, with trading less than six contracts over the first week.

Bakkt executives have touted the new agreement as a milestone for cryptocurrency industry, catering to large institutional investors who so far have been slow to buy bitcoin and other digital assets.

According to the exchange, the new offer must conform to institutional investors such as hedge funds and other money managers because Bitcoin must be delivered to fulfill the terms of the contract, when the expiration date arrives. This feature has been touted as a key asset for homeowners who want to hedge their portfolios, in contrast to the CME contract, offset with cash payments, but has become popular among individual investors advantage.

David Weisberger, CEO of CoinRoutes, a company based in New York that helps investors cryptocurrency operations route several exchanges, said that Bitcoin currently investors in the market already has plenty of places to buy and sell, but it is too early to Bakkt rule again thrust, he said in a telephone interview.

“It takes time for people to move from one place to another, unless there is a reason of cost or liquidity ratio” Weisberger, a veteran of Wall Street firms Citigroup and Morgan Stanley, he said in a telephone interview, and I add:

“These things tend to develop slowly.”

Damon Leavell, a spokesman for Intercontinental Exchange, said in an email that there was “strong industry participation” during the first week of the new contract Bitcoin.

The contract expiring in October, he said, was the “tightest buy-sell spreads in the market, which was an exciting achievement.”

Wall Street analysts are in supply and demand call spread – the gap between what buyers are offering to pay and what sellers are offering to accept – as an indicator of how efficiently a market is working.

Chart image via Shutterstock

This article is republished from coindesk.com. If you have any questions, objection or any other matter you can contact us. Thank you for visiting our website.

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