More bakkt futures contracts are settled in Bitcoin than in cash
According to the latest data from Skew, the volume of Bakkt's physically settled futures exceeds the volume of cash-settled products. With an average daily volume of 14 Millions of dollars in the past month seem to be attracting more traders to futures contracts that are processed with Bitcoin.
Physically settled futures are an optimistic case for Bitcoin
Bitcoin's strong start to the year 2020 has more institutional traders prompted to position itself. Bitcoin closed its best month of the past seven years in January 2020 and thus expressed that institutional volume up.
Earlier this month, the physically billed Bakkt contract posted a new record of 11, $ 6 million – 114 percent in a week. This increase was believed to reflect the influx of new buyers entering the market, which should prolong Bitcoin's upward trend.
And now the latest data showed that the increase in Bakkt volume in January 2020 was humble. According to BakktBot, the total open interest in Bakkt's Bitcoin futures is now around 17, $ 8 million.
The data shows that more traders want to process their futures in Bitcoin than in cash
The growing open interest in Bakkt's Bitcoin futures is reflected in the increase in volume. Skew data has shown that more Bakkt contracts are settled with physical Bitcoin than in cash.
According to Skew, Bakkt's cash-settled Bitcoin futures reached an average volume of around 11 million dollars, while the physically settled contract also has an average volume of 14 million dollars.
The growing number of institutional traders who choose to settle their contracts in Bitcoin is an optimistic case for the cryptocurrency. Arcane Research's January report found the data shows that institutional investors are experiencing a growing appetite for Bitcoin.
Arcane Research reported that the 230 Bakkt Bitcoin futures contracts that are on 17. January 1, had a face value of over $ 2 million. The company only delivered 15, 17 and 8 contracts in October, November and December of last year.
This means that the physical delivery of Bitcoin futures contracts by 1. 625 percent of their average of 13, 3 BTC a year 2019 has increased, as Arcane Research published in the report.
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