Editor's Note: This article comes fromNakamoto Shallot (ID: xcongapp), Author: Sister Xiaocong, published by Odaily with authorization.
Editor's Note: This article comes from
Nakamoto Shallot (ID: xcongapp)
Nakamoto Shallot (ID: xcongapp)
, Author: Sister Xiaocong, published by Odaily with authorization.
Skew data research shows that the trading volume of CME Bitcoin futures has shrunk to the lowest level in four months this week, and the trading volume is only 50% of the peak in July. The market performance of the futures market is also seen as an indicator of Bitcoin’s weakness.
From the data in the figure, it can be seen that in the first half of this year, the trading volume of CME Bitcoin futures continued to rise and hit new highs repeatedly. However, after entering August, its trading volume began to show a weak state, and September was even more sluggish.
In August and September, the bitcoin market fluctuated sideways for most of the time, stuck around $10,000 for a long time, and the overall market conditions also appeared relatively flat, which may be one of the reasons for the decline in CME trading volume.
However, there are also market views that the sluggish trading volume of CME may be related to Bakkt. Bakkt has opened bitcoin storage services and will officially open its bitcoin futures transactions in physical settlement in three days. time coincides.
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CME "throne" unstable?
Since the beginning of this year, the trading volume of CME has actually been growing rapidly, especially after the Chicago Board Options Exchange (CBOE) cryptocurrency futures trading will be officially closed, the development of CME is like a spring breeze.
In December 2017, CBOE, the world's largest options market, was the first to bring Bitcoin futures into history, followed by CME, which also launched Bitcoin futures contracts (BTC). CBOE and CME provide a regulatory-compliant trading environment for the digital currency market, which is considered a watershed in the legality of cryptocurrency.
However, on June 19 this year, CBOE ushered in the delivery of the last bitcoin futures contract, and CBOE cryptocurrency futures trading was officially closed.
Compared with the desolation of CBOE, CME sits firmly on the "throne" of the bitcoin derivatives market.
The trading volume of related derivatives companies in the current market is also inferior to that of CME. According to the report, the trading volume of Grayscale’s Bitcoin trust product GBTC has declined, and only recorded 1.14 billion US dollars in August; the number of GBTC is higher than that in July A reduction of 42.4%. BitMEX’s BTC futures perpetual contract product volume totaled $51.8 billion, down 23.8% since July. And bitFlyer's Lightning Japan sales were $27.8 billion, down just 3.9% since July.
But Bakkt is about to "explode the field". Although Bakkt is a bitcoin futures with physical delivery, as the trump card of this year's cryptocurrency market, Bakkt may take away a large number of cryptocurrency derivatives traffic, or even take away CME funds and flows.
Crypto analyst Plan B sees Bakkt’s Bitcoin futures as more favorable than CME’s. He compared Bakkt to CME, a cash-settled futures exchange. CME can be disadvantageous because it relies on fiat currencies. However, the addition of Bakkt is important as it allows the future to use bitcoins to trade bitcoins instead of fiat currencies.
Digital currency analyst Joseph Young also tweeted that when excluding the unverifiable bitcoin trading volume (95% according to Bitwise data), CME accounts for a large part of the global bitcoin trading volume. However, Bakkt is expected to be a game-changer in the Bitcoin market through compliant custody and insurance.
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These benefits of Bakkt should be highlighted! However, its impact on the price of Bitcoin after its launch is still unknown
Bakkt is considered to bring many benefits to the market. Combined with previous market views, the benefits of the Shallot APP will be organized as follows:
1. Bakkt provides physical delivery, which is different from US dollar settlement. This will increase market demand for bitcoin spot and reduce bitcoin's exposure to price manipulation. Bakkt becomes the first platform in the history of cryptocurrencies to offer futures contracts where buyers can expect physical delivery of Bitcoin.
2. Bakkt will bring capital and flow to the cryptocurrency market and provide more liquidity for Bitcoin transactions.
3. Bakkt provides a federally regulated and compliant system for institutions to purchase bitcoin, providing institutional investors with a stable and safe access to the cryptocurrency market.
