Bitcoin Futures: Bakkt hits new ATH, CME Crashes 300% – What Can we Read Into This?


Bitcoin futures continue to be a key metric and mainline to institutional interest in Bitcoin. CME has emerged as the leader for Bitcoin futures contracts aimed at institutional investors, but Bakkt is another one to keep an eye out on. 

However, since December 2017 and CME and CBOE’s entry into this new market, it has been hard to make strong correlations between the uptick in these contracts and the general institutional growth of the Bitcoin industry. 

Bakkt, itself, has been a difficult entity to track as its emergence was heralded as the floodgates opening for institutional investors to get their hands on Bitcoin, yet its opening weeks were woeful. That has suddenly changed, as Bitcoin’s price volatility seems to have awoken something

At the same time, it has also been seen that the last week had a stop off of around 300 percent in the CME futures. Could this be linked to Bakkt contracts taking the limelight, or are CME investors more cautious as Bitcoin’s price fluctuates widely? 

The idea that the Bakkt growth is proportional to the drop in interest in the CME contracts, and that institutional investors are now suddenly much keener on physically-settled contracts, would appear to be an oversimplification. 

The reason for this, as pointed out by Krüger, is that Bakkt is only 4 percent the size of CME when it comes to these types of contracts. But then why is one up while the other is down? Bakkt has been hitting new highs in the last few weeks, and also the price of Bitcoin has been doing loads of things. 

The first time that Bakkt crossed over the $10 million volume mark for Bitcoin futures contracts was when Bitcoin managed to rocket back towards $10,000. More so, the most recent all-time high for Bakkt was actually when Bitcoin’s price was tumbling back down again.

It will probably remain speculation as to why Bitcoin futures contracts are moving the way in which they are, but, what is probably most notable is that there is a slow and decided growth in this opportunity for Bitcoin to be bought by traditional investors. 

Darryn Pollock
Darryn has been interested in the blockchain and cryptocurrency space since he heard about Bitcoin in 2015. He then decided to use his journalism degree to report on this fascinating fintech space in 2016, and has not looked back since.

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