Bakkt which is owned by Intercontinental Exchange (ICE) has experienced a very low-spirited performance of the Bitcoin’s options. Bakkt Bitcoin options have not seen a single trade opened over the last 10 days. Moreover, Skew blockchain data provider indicates that Bakkt has seen a significant drop in open contracts since mid-January. The last options trade to be opened was January 18, 10 days ago. The biggest trade to be opened over the month of January was for just over $500,000 during the second week of the year.
On the other hand, rival exchange Chicago Mercantile Exchange (CME) Group continues to experience strong interest in bitcoin options trading. The CME Group saw 59 lots traded over the last week, as per the group’s website. All the trades opened on CME’s Bitcoin options were called that the bitcoin price would go up.
However, an ICE spokesperson asserted that Bakkt continues to experience “strong” interest in both its bitcoin options and futures products. The spokesperson says:
“We continue to see strong interest in our growing base of customers in our bitcoin futures and options complex, which offers a broad range of choices for interacting with and hedging positions in digital assets.”
Moving forward, its looks set to be very disheartening inception for Bakkt which had earlier experienced new highs back in November last year. However, the firm recently hired a new president, Adam White. He announced earlier this week that the exchange is considering other products for its customer base.
Market Demand for Bitcoin Options
It is unfair to judge the options market based on Bakkt’s recent failure to generate demand for its futures. The CME Group, on the other hand, has experienced a sufficiently high interest in options since they were launched at the beginning of the year.
In conclusion, according to the CME Group, 54 contracts were opened within its 24 hours launch. The trades were worth $2.3 million in bitcoins. This number surpassed Bakkt’s entire volume since their launch in September last year.