Indicators point to a rapidly growing institutional acceptance of Bitcoin
The rise of institutional adaptation was one of the most important hangers for Bitcoin in the year 2019. The volume of trading activities on crypto platforms aimed at accredited investors is still relatively small, but has increased noticeably and steadily in recent months.
Bakkt has a monthly volume of $ 161
The New York Stock Exchange's parent company, ICE, operates a regulated bitcoin futures market known as Bakkt. Bakkt recorded on 18. December a daily record volume of 2. 224 contracts worth around 18, $ 9 million. Throughout the month of December, Bakkt had a volume of 161 million dollars.
“Bakkt ™ Bitcoin (USD) Cash Settled Futures contract closed December with a total of 18. 946 traded contracts and recorded on 16. December a daily turnover record of 2. 224 contracts. ”
Since the eagerly awaited start in the second half of the year 2019, strategists have generally expected Bakkt to have a slow start. It takes time for investment firms and brokers to launch new institutional infrastructure and futures products, as Three Arrows Capital CEO Su Zhu said:
“Bakkt will probably be a trickle first and then a flood. The reality is that most regulated futures contracts are little accepted on Day 1… ”
In the beginning, Bakkt saw little volume, especially when compared to spot exchanges and large margin trading platforms. Since the monthly volume of the platform now exceeds 100 due to the cash-settled mechanism, it could be medium have a certain impact on Bitcoin's price development in the long term.
CME has released new Bitcoin options
At the 14. In January, Tim McCourt, a managing director of the CME Group and global head of equity products, said the company has introduced options on Bitcoin futures. McCourt noted that he's happy with the growth of his bitcoin derivatives.
“We are pleased that our CME Bitcoin futures have quickly developed into one of the most liquid, listed Bitcoin derivative products in the world in the past two years on average almost 6. 400 contracts (corresponds to 31. 850 Bitcoin) issued in the year 2019 were traded daily ”.
The rapid growth of both existing and newly launched institutional Bitcoin service providers as well as the expansion of derivative products by a large corporation such as CME shows that institutional demand is increasing.
It is premature to find that there is enough institutional demand for Bitcoin to push the cryptocurrency market up in the short term. There is still a gap between the institutional market and spot or margin trading. Nevertheless, all data show that the institutional crypto market is generally on a positive path for long-term growth.
Proof of text: cryptoslate