As Alanis Morrissette famously wails: – It’s like rain on your wedding day.
In the first day of historic trading for the much-anticipated Bakkt Bitcoin futures network, planners reported an astounding volume of 18 Bitcoin.
That’s astoundingly low.
After going to live at 8 PM September 22, Bakkt observers saw volume levels that Marie Huillet at Cointelegraph described in coverage today as “apparently slight.”
Looking at the notable lack of activity on the platform, some experts are trying to explain to the public why volume has been so low.
“Probably a more gradual scale-up since it’s physical,” notes investor Ari Paul as quoted in Huillet’s story. “With CME futures, anyone with the right (Futures Commission Merchant) could immediately trade on launch … I’d think the incremental demand … would come from people who want to buy or sell physical for delivery, at least at first. Receiving could be instant (use FCM to convert), but I’m kind of thinking depositing physical will be gradual.”
Another argument to be made for the lack of activity on Bakkt is that Bitcoin futures contracts are a bit more obscure and institutionally oriented than an alternative that’s been slow-walked by the SEC for months, namely, a Bitcoin ETF.
Unlike the Bitcoin physically delivered futures that Bakkt provides, to which some logistics issues apply, the exchange traded fund allows for intraday market trading at small amounts and could really explode if someone is allowed to set one up. It’s made for trader convenience. So when will the SEC allow it?
Up to now, we have not seen significant buy-in from regulators. That leaves us with Bakkt, which is, after much fanfare, now an actual operation, albeit one that looks a lot like a big grand opening with fancy catering to which a few influencer-nerds show up, grab a snack, and leave. Just crickets.
For now, keep a close eye on Bakkt to understand whether in this platform is going to pick up.
