Since the US cryptocurrency futures exchange Bakkt began trading in late September, the trading volume was still in its infancy. However, some US analysts believe that it’s too soon to write off Bakkt, despite the bitcoin futures market’s disappointingly slow start.
An analyst at Oppenheimer & Co, a US investment bank, recently published a report on the American Intercontinental Exchange Group (ICE), which mentions Bakkt under ICE. The report pointed out that investors do not have to feel uncomfortable with the lack of trading. The bank counts its first five days of trading, with an average daily trading volume of 125 futures contracts, which also represents 125 bitcoins.
Compared to the Chicago Board Options Exchange (CBOE) operating in 2017, the average daily trading volume of 4,000 futures contracts in the first month (each contract equals 1 bitcoin), and the Chicago Mercantile Exchange (CME) 500 futures contracts (each contract is equivalent to 5 bitcoins). Bakkt is naturally dwarfed.
However, Oppenheimer & Co analysts also pointed out that Bakkt uses bitcoin spot to settle, which is different from the above two transactions, so it is difficult to assess the amount of Bakkt’s future transactions, and it is not appropriate to comment on the final success. “It will take a long time for the market to apply cryptocurrencies on a large scale, but the amount of transactions that cannot be achieved is not as expected, and its value is discounted.”
It is worth noting that Bakkt has a star-rated investor lineup, led by ICE, and Microsoft’s venture capital firm M12, Boston Consulting Group (BCG) and Hong Kong’s richest man Li Ka-shing’s Victoria Harbour investment also have investments, so the market remains for Bakkt. There are high expectations.