Bakkt Markets, the much-awaited special trading platform for Bitcoin futures, has finally been launched by Intercontinental Exchange (ICE). After being in the works for more than a year and facing various regulation delays, Bakkt Markets goes live today. The new platform caters to the growing demand for a specific Bitcoin futures exchange.
The trading volume, however, has been muted giving rise to apprehensions about its technical prowess. There was a lot of hype surrounding its release, but the trading volume reflects the rather damp mood of traders. However, it is still too early to pass any judgment, and trading is expected to pick up as the traders warm up to the new platform.
It is worth noting that Bakkt’s development has been actively tracked by the crypto community. The proposed futures exchange went live only a few hours ago, and traders are yet to explore its full potential. As of 08:02 ET, BTC futures were trading at $10,115. ICE Futures U.S. is also handling other futures contracts actively.
Bakkt BTC futures start operations: Low trading volume
Bakkt is unique in so many ways. As per the official statement, Bakkt’s Bitcoin futures are powered by a price discovery model that is federally regulated. The technology powering the ICE platform for global markets also powers this new platform. ICE also owns the New York Stock Exchange, so that increases the credibility quotient manifold.
A notable difference that separates Bakkt BTC futures from conventional Bitcoin futures platforms is its feature of physically settled contracts. So, when a contract expires, the traditional exchanges give them a cash equivalent amount. Bakkt, however, gives them a real Bitcoin upon expiry of the contract. This feature helps increase liquidity in the market and also improves price discovery.
Bakkt is especially attractive for institutional investors since they can join the Bitcoin market due to features such as better price discovery model and controlled warehousing. New York State Department of Financial Services (NYDFS) has reportedly granted a license to ICE to hold user’s funds.
As of now, around thirty contracts are trading on the platform, which is undoubtedly low. The Bitcoin price itself also hasn’t fluctuated much either and is hovering around $10,000 level. But its the first day and trading are expected to increase exponentially as the traders warm up.