Bakkt, a platform of the Intercontinental Exchange (ICE), traded 71 Bitcoin futures contracts in the first 24 hours of business, Cointelegraph reports.
The Bakkt platform launched on 22nd September and according to ICE’s historical data on Bakkt’s Bitcoin/USD futures contract trading, the platform has traded 71 BTC at press time, with the last recorded trading price settling at $9,875 per Bitcoin.
Rakesh Upadhyay, who has analysed Bakkt trading for Cointelegraph, wrote that “the lukewarm reception to the Bakkt launch is likely due to the fact that the currency’s price has been range-bound recently, so institutional traders are in no hurry to initiate positions.”
Just before the launch ICE placed “tentative” margin requirements for the contracts, setting the initial hedge requirement for daily and monthly futures contracts at $3,900, while the speculative initial requirement for both contracts is $4,290. In addition, the inter-month add-ons for the monthly and daily futures contracts are between $400 and $1,000 for the hedge rate, and between $440 and $1,100 for the speculative rate.
Bakkt is the first platform of its kind to be approved by US regulators. ICE’s intention in setting up Bakkt, was to create an integrated platform that enables consumers, merchants and institutional clients to buy, sell, store and spend digital assets on a “seamless global network.”
Bakkt CEO Kelly Loeffler said after the launch, that the platform provides “reliable and regulated infrastructure” while pushing for the “adoption of new digital currency-powered technology and financial instruments.”
Fundstrat Global Advisor, Thomas Lee, argued in advance of the Bakkt launch that it would enhance Bitcoin’s reputation, as well as that of other cryptocurrencies. Lee wrote, “I am very positive on Bakkt and its ability to improve trust with institutions to crypto.”
American investor and Morgan Creek Digital Assets co-founder Anthony Pompliano, also said that institutional investors would end up with BTC in their portfolios: “The more infrastructure that’s built around this, the more likely it is to never go away […] we’re at a tipping point now where Bitcoin is here to stay. It’s going to end up being in every institutional investor’s portfolio.”