In the weeks following the Bakkt Bitcoin Futures Platform launch, much attention was brought to the low amount of volume on the platform as a sign that institutions are just not really interested in Bitcoin and cryptocurrencies.
While this sentiment had a consensus among many in the crypto space, the more savvy investor saw this as a sign of a legitimate market that was new to launch and would require a little more time for large institutions to warm up to.
Fast forward to the present and signs of a warm-up are beginning to show. The platform actually reached a single-day all-time high in October, trading 1183 futures contracts on the platform on October 26th, and closed the month with 623 contracts traded on the final day of the month.
The platform undoubtedly got a boost from the announcement from China that it will be officially embracing blockchain technology, as the Bitcoin price on the Bakkt platform shot up to a value as high as $10,500 before retracing back to its current value of $9,436.
And it’s not only Bakkt that is hinting at an increase in institutional interest. By mid-October, institutions including pension funds, endowments, insurance companies, mutual funds & portfolio/investment managers with institutional clients were seen to be increasing their open Bitcoin positions on the CME market. There are currently more than 1,100 BTC worth of open contracts on the CME market showing that demand is not subsiding.
The way things are currently unfolding, it’s only a matter of time before the mainstream flood gates open and the real big money players arrive to throw their weight around.
According to Jeffrey Sprecher, the chief executive of the Intercontinental Exchange (ICE) which is the firm behind the New York Stock Exchange and much of the crypto upstart’s operations, “All [kinds] of financial institutions are talking to us and looking at this and trying to figure out where this fits and what the global regulators are going to think about this and so on and so forth. So there’s a tremendous amount of dialogue around it.”
But Bakkt isn’t stopping there. The platform has also recently announced its entry into the mobile payments sector with a consumer app designed to help customers “unlock the value of digital assets, as well as ways in which they can transact or track them.” And with coffee behemoth Starbucks already signed up as the flagship retailer committed to the payments application, it won’t be long before a multitude of firms sign on to the latest payments evolution that is sure to upend the current paradigm.