Trading volume on Bakkt has been rocketing higher in recent times, seen a 17% rise in its total futures volume
It seems that at this moment, institutional activities are increasing very fast. In particular, led by Bakkt with a 17% increase in total futures trading volume, 18% in its total open interest. Apart from Bakkt, CME is also a notable figure of the week.
Bakkt generated an increased trading volume
Since Bakkt ran out in late 2019, the platform has not been used as much by institutional investors as we had anticipated. However, this trend may be starting to change, as the platform has seen a noticeable increase in both open interest and the trading volume for its monthly Bitcoin futures products.
According to the Bakkt Volume Bot, the total volume on Bakkt last week was $ 80 million, marking a 17% increase from the previous week. Open interest for the crypto’s monthly futures also rose, climbing by 18 percent as another $ 9.3 million was added.
ICYMI: this week’s summary of Bakkt Bitcoin Monthly Futures:
? Total volume: $80 million (+17%)
? Max open interest: $9.3 million (+18%)
— Bakkt Volume Bot (@BakktBot) July 5, 2020
Even so, the volume on the platform is still significantly reduced compared to a few months ago. But anyway, it has been on an upward trend in the past few weeks. This uptrend has taken place despite Bitcoin and the general cryptocurrency market falling into a consolidation period.
It seems that growing institutional investors are increasingly interested in hodl before Bitcoin sees a spike.
The increased volume of Bakkt is not the only sign of institutional participation in the cryptocurrency markets. The premium on CME is also rising, continuing to support the view that significant investors are adopting a strategy to buy and hold Bitcoin.
According to a report from Bloomberg, the Bitcoin futures average averaged more than 1% during the past month.
The report stated:
“A stabilizing premium in the Bitcoin futures price is supporting the market and indicates more institutional buy-and-hold interest … Our graphic depicts futures averaging just over 1% above the Bloomberg price (XBTUSD).”
The potential cumulative trend seen over the past few months may have laid the foundations for cryptocurrencies to witness a strong move in the coming weeks and months.
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