Editor's Note: This article comes fromCointelegraph Chinese (ID: CointelegraphChina), Author: JOSEPH YOUNG, reprinted with authorization by Odaily.
Cointelegraph Chinese (ID: CointelegraphChina)
Cointelegraph Chinese (ID: CointelegraphChina)
, Author: JOSEPH YOUNG, reprinted with authorization by Odaily.
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Bakkt, a digital asset payment platform and derivatives exchange, is tailored for institutional investors in the United States and is operated by Intercontinental Exchange, the parent company of the New York Stock Exchange.
When volume in the Bakkt bitcoin futures market increases, it usually indicates increasing institutional demand for the digital asset.
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Volumes from CME, LMAX Digital, and Bakkt Show Institutional Bitcoin Market Is Growing Rapidly
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BTC futures trading volume Source: Digital AssetsData
As seen above, Cointelegraph and Digital Assets Data reflected a surge in futures volume across multiple exchanges in October.
According to analysts at Arcane Research, Bakkt’s 400 BTC contracts will expire in October. Compared with September last year, the figure was up 14%, the data showed.
Therefore, Arcane Research said that the large increase in the delivery volume of Bakkt's futures contracts indicates that institutional demand is increasing. The researchers noted:
Another record BTC delivery volume on Bakkt this month. There are more than 400 BTC futures contracts expiring in October, a 14% increase from September. With Bakkt hitting new highs this month, demand for Bitcoin from institutional investors is increasing.
In addition to the high trading activity on Bakkt, LMAX Digital and CME are also continuously showing great demand.
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Since LMAX Digital primarily facilitates institutional trading, the exchange outpacing Coinbase describes the current institutional landscape for Bitcoin. Institutional demand is very strong, especially after recent high investments from Square and MicroStrategy.
Similar to Bakkt, open interest in the CME Bitcoin futures market has also increased. Since Oct. 2, following the September expiry, CME’s Bitcoin open interest has increased from $345 million to $561 million.
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CME Bitcoin Futures Open Interest Source: Skew
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Industry executives see institutional growth as a positive
