Bitcoin futures offered by Bakkt see massive action over the past two days
As BTC’s price has gone up, so has attention to futures trading products
Intercontinental Exchange subsidiary Bakkt has scored another win in the crypto world after seeing a massive increase in the trading of its Bitcoin futures due to the currency’s increased price.
Bakkt is reporting that it broke a new record of trades for its monthly Bitcoin futures, with the highest ever figure being reported yesterday – a total of 11,506 contracts – which is an 85% increase over the previous record. The increased trading follows up the current Bitcoin price that went up to $11,400 – the highest price recorded in 2020.
“Talk about momentum! We beat yesterday’s record with 11,706 Bakkt Bitcoin Futures traded today – that’s over $125MM of bitcoin,” said the company today. Bakkt’s popularity in trading its physically-settled contracts has to do with the fact that the contracts are paid out in Bitcoin as opposed to other cash-settled contracts that are paid in USD. Clearly, the momentum has been giving by the rising prices of the digital token; however, Bakkt’s product is also quite appealing for users.
This momentum has been affecting other companies, as well, and Bakkt was not the only institutional exchange to break records this week, according to data from Skew Analytics. A company that has greater volumes than Bakkt, by far, the Chicago Mercantile Exchange (CME) has also recorded a surge in Bitcoin futures contracts this past Monday. According to the data, 25,493 futures contracts were traded the first day of this week and the daily volume while open interest was reported at $1.3 billion, which is a measure of the total number of derivatives contracts that are not yet settled.