Seen as a product that will bring a flood of investor money, the Bakkt launch only brought a trading volume of 66 Bitcoins for the first day. While a part of the crypto community is severely disappointed in the product’s long-awaited launch, some analysts believe that the Bakkt exchange will establish long-term adoption and that it needs more time to affect the market.
The crypto community had great expectations for the Bakkt launch
The long-anticipated Bitcoin futures trading platform, created by the Intercontinental Exchange (ICE), finally went online at on Monday 8 PM EST. Seen as a beacon of hope by the Crypto community, the Bakkt exchange is believed to be the gateway to institutional money, which would significantly affect the market. However, at the time of writing, the trading volume at the Bakkt exchange is only worth 66 Bitcoins.
Although most of the crypto community had great expectations of the Bakkt launch which many see as a significant event in the cryptocurrency history, Bakkt has not reached the hopes of many traders. And as if that was not enough, on the day of the Bakkt launch, the Bitcoin price dropped as well. At the time of writing, BTC is trading at $9,800. The new platform thus did not have a positive impact on the crypto prices either.
Nevertheless, market analysts compare the platform’s launch to similar products who have not met their ambitions. For example, CME’s bitcoin futures only had $460 million in trading volume in the first week, reaching only $700 million at the time of writing.
There is still hope for the Bakkt exchange
Ari Paul, the CIO and co-founder of BlockTower Capital, argued that the adoption of Bakkt will be gradual, as the platform’s contracts are physically settled in Bitcoin. Comparing it to CME futures, he added that traders could immediately trade given the right Futures Commission Merchant (FCM).
Although the impact of the Bakkt exchange is not apparent yet, many believe that the platform will have a positive influence on the crypto adoption in the long-term. Famous Bitcoin supporter and Fundstrat analyst Tom Lee recently stated in a tweet that he is optimistic that the Bakkt exchange will improve trust between crypto and institutions.
Bakkt exchange CEO Kelly Loeffler stated that the arrival of regulated markets will increase the adoption of digital assets. As for why the Bakkt launch truly matters, Loeffler added that their product brings a reliable and regulated infrastructure, further adoption of digital currencies and financial instruments, and rapid expansion of innovative methods for managing and transferring digital value.