Bakkt launching new Bitcoin choices in “Industry First” for futures contracts

The Bakkt platform is preparing to launch new derivatives of Bitcoin trading. By December, users of the regulated platform will be able to exchange the Bucket bitcoin option contract.

However, after a very slow start, the volume in Bakkt increased dramatically yesterday. Additional products that enter the company may indicate the continued growth of the platform.

Bakkt to add the Bitcoin option this December

According to a blog post by Bakkt CEO Kelly Loeffler, the platform will launch a new derivative product on December 9. The post says:

"We committed to providing trust and utility to digital assets and options contracts are an example of the many products we developing for the market."

Loeffler described the launch as "an industry first." It seems that CME will beat the group by offering options on futures contracts for a few weeks. The global markets firm recently announced that it would launch a similar product in early 2020.

For those who do not know, the futures contract options allow the trader to set a price at which they wish to buy or sell the futures contract when it expires. They canbe used as coverage against various trades and exposure to the underlying asset, bitcoin.

Loeffler states that the contracts wer driven by customer feedback. Describe the launch of the new derivation of the platform as follows:

"… another important step in the development of this class of assets for institutional investors, their clients and investors."

Bakkt first launched its physically arranged futures contract in September this year. For many people interested in the bitcoin and cryptocurrency space. The highly publicized phenomenon was a lethargy. Initial trading volumes have been much lower than people expected, which perhaps suggests that potential investors were not interested in bitcoin.

Large segments of the cryptocurrency community hoped that the launch of Bakkt would feed some kind of institutional shopping frenzy that would take prices to new historical highs. On the contrary, volumes are low and bitcoin prices have fallen substantially as it activates.

However, in recent times the business of the physically established futures of Bakkt has steadily increased. On October 23, the volume peaked at $ 4.81 million. This represents a substantial increase over the previous days.
With a trade of $ 4.8 million, the volume is still nothing more than what was reported in the largest cryptocurrency market. However, when volumes have generally been between $ 200,000 and $ 1.9 million. There has clearly been strong growth in the contract business offered by Bakkt . New products and investors are getting more used to the platform. Which may encourage greater interest in Bakkat in the coming weeks and months.