After several launch postponements, the Bakkt platform for institutional investors started trading bitcoin futures with physical delivery just a few hours ago.
Cryptocurrency futures have long been launched on the CHICAGO CME exchange, but they are calculated in monetary terms and this is their fundamental difference from the Bakkt product. In addition, not only monthly but also daily contracts are available to the platform’s clients – bitcoins will be transferred to the buyer’s account on the second business day after the contract is closed. In other words, this is the usual form of asset purchase for institutional investors.
“Daily futures offer the same freedom as buying with cash, as well as the ability to play short. This is great. Let’s see if the derivatives market will follow the derivatives market or not. In theory, the derivatives market should dictate prices for derivatives, but in practice, for many commodities, we see the opposite situation,” said Lanre Sarumi, CEO of cryptocurrency exchange operator LevelTradingField.
Bakkt representatives expect significant interest in the Product from institutional investors. According to John Todaro, research Director at TradeBlock, the volume of derivatives trading usually exceeds the volume in the futures market. However, he expects that the demand for Bakkt futures will be comparable to trading cryptocurrency futures on the CME exchange.
“The new offer, as well as trading futures on CME, can change the attitude of regulators to cryptocurrencies to a more positive one,” Todaro believes.
Note that recently, trading volumes on both the futures and futures cryptocurrency markets have significantly decreased. However, perhaps this is just the calm before the storm, because after the launch of Bakkt, the price of the first cryptocurrency can grow significantly.