Bakkt Is Losing Against CEM Group In Bitcoin Options Trading

  • Bakkt, no Bitcoin options contracts traded within the last week. The previous transaction that took place on the platform done on January 17, 2020.
  • Bakkt released its first regulated Bitcoin options contract on December 9, 2019. They have already provided the cash-settlements in November.
  • Chicago Merchantile Exchange Bitcoin options contract traded for more than $2.3 million on the first day and completely shadowed Bakkt.

The market has shown great interest in Bitcoin products, including the CME group, Bakkt, which is a cryptocurrency trading platform under the ownership of International Exchange, an NYSE trading company. However, Bitcoin transactions are going down.

As per the reports from Bakkt, no Bitcoin options contracts traded within the last week. The previous transaction that took place on the platform done on January 17, 2020.

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What makes these twenty transactions interesting is that they took place when the price of Bitcoins was highest in three months, further increasing the market volatility.

Planet King and CoinMarketCap, have reported that Bitcoin prices have reached over $9439 a 1.86 percent increase in 24-hours. The total market value has recorded more than $170 billion.

In the case of Bitcoins, the demand for Bitcoins rises as price volatility increases. Volatility is the standard rate of deviation that used for the return on assets.

Bakkt released its first regulated Bitcoin options contract on December 9, 2019. They have already provided the cash-settlements in November. Bitcoin futures contract products and futures contract products settled in physical bitcoin.

Chicago Merchantile Exchange Bitcoin options contract traded for more than $2.3 million on the first day and completely shadowed Bakkt. It has been clear that since the arrival of the Chicago Merchantile Exchange, Bakkt’s trading activities have diminished.

Even though the Chicago Merchantile Exchange was launched almost a month after later, it is clear that the investors prefer CME over Bakkt.

Bakkt’s Bitcoin contract products managed to hit a high on December 18 last year at 6600 contracts. This number looked great, but CME records were a lot better, with an average of 6400 contracts daily.

As the Bitcoin reward is going to halve in May 2020. It could help Bakkts’s Bitcoin contract option to get more substantial due to price fluctuations, but one cannot be sure that the same wouldn’t hold for CME.

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Steve Anderrsonhttp://www.thecoinrepublic.com
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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