Bakkt, the crypto exchange platform from the Intercontinental Exchange, has seen its futures trading volume soar to 1,061 contracts, indicating that institutional investors are finally getting on board with the platform.
Since its launch on September 27, Bakkt has endured a sluggish start to life despite being one of the most highly anticipated exchange in the world of crypto this year. With just 623 futures contracts being traded in the first week, for a total value of just over $5 million USD, it appeared as though the platform was a massive flop. Bakkt had been touted as an entry point for legacy financial institutions into crypto trading, given its close associations with legacy institutions like the New York Stock Exchange.
However, the monthly trading volume skyrocketed on Tuesday to $10 million USD, the second-largest figure recorded so far, falling 112 contracts short of the peak volume of 1,183. The last time Bakkt’s monthly futures volume spiked was on October 25, the day Bitcoin pumped over 18%. This week’s spike is slightly unusual in that Bitcoin has been trading in a narrow range of $9,169.84 and $9,474.89. Despite this, Bakkt’s advocates will be happy to see growing interest from institutional investors, which is bullish for Bitcoin.
Bakkt trading volumes and Bitcoin’s value are closely linked. The slow start to life for the platform came at the same time as a downward spiral in BTC value, crashing from above the $10,000 USD milestone to below $8,000 USD over the course of Bakkt’s first weekend following its launch. Some analysts blamed the exchange’s poor start for the downward spiral; however, the roles have since reversed, with BTC value now dominating volume on Bakkt.