Bitcoin futures trading on Bakkt passed another milestone this week. After last week's record trading volume in terms of trading volume - over the past two weeks, interest in open trading rose yesterday from less than $1 million to a record $6,5 million.
Compared to the daily trading volume, which indicates the volume of transactions completed on the platform on any day, open interest is the total amount of all traders with active “long” or “short” trading positions opened on the regulated CFTC exchange. ,
It is interesting to note that the recent rise in trading interest may indicate a longer-term optimistic outlook for the future platform. Unlike the daily exchange volume, which often can see big surges due to sharp changes in the price of bitcoins, open interest is a more stable measure to understand how interested the basic Bakkt trader, mainly from the United States, is in the bitcoin-based futures product.
Since launching at the end of September, Bakkt has stepped up its platform significantly. After registering $4,3 million US and $0,8 million US respectively in terms of volume and open interest in the first full week of trading – last week the platform hit a record high of $124 million. US in terms of volume and $4,3 million. US open rate. The recent daily spike (+42%) in open interest is also surprising given that volume growth seems to have cooled off of late.
Myth: Bakkt futures fully backed by bitcoin.
Reality: Bakkt futures 37% backed by dollars or treasuries. pic.twitter.com/m9Gww7SP8v
- Alex Kruger (@krugermacro) December 2, 2019
According to trader Alex Krueger, Bakkt Bitcoin futures are actually only 63% secured by bitcoins according to market documentation. The remaining 37% is supported by decree in the form of US dollars or government bonds.