Cryptocurrency
Literally No One Is Trading Bakkt’s Bitcoin Options
As reported by Coindesk, “Trading volumes in bitcoin options listed on the Intercontinental Exchange’s Bakkt platform have completely dried up, even while CME’s options product is seeing strong interest. “As per Bakkt’s data, not a single bitcoin options contract was traded last week on Bakkt, with activity last registered on Jan. 17, when 20 lots […]
As reported by Coindesk, “Trading volumes in bitcoin options listed on the Intercontinental Exchange’s Bakkt platform have completely dried up, even while CME’s options product is seeing strong interest.
“As per Bakkt’s data, not a single bitcoin options contract was traded last week on Bakkt, with activity last registered on Jan. 17, when 20 lots had changed hands…
“…New York-based Bakkt launched the first regulated bitcoin options contract on Dec. 9, having rolled out a cash-settled futures and physically settled futures November and September, respectively.
“The physically delivered product, which went live on Sept. 24, was well received by the markets. Trading volumes quadrupled to $4.8 million in one month after launch, as noted by Bakkt Volume Bot, a Twitter account that tracks the exchange’s trades. The solid growth likely motivated Bakkt to offer option contracts on bitcoin.
“So far, however, the uptake for its options product has been weak. Bakkt traded a little over $1 million worth of options in the first four weeks since the launch on Dec. 9. The highest contract, worth $500,000, was initiated during the second week.
“These numbers appear weak when compared to the Chicago Mercantile Exchange’s (CME) first-day options trading volume of $2.3 million. Trading activity on Bakkt has dwindled particularly since the launch of options on the CME. The CME listed options on Jan. 13, a month after Bakkt’s launch. Even so, the Chicago-based exchange is witnessing higher trading volumes; while Bakkt saw no activity last week, the CME traded 59 lots of options.
“For now, institutional investors seem to be preferring CME over Bakkt, which isn’t surprising as the CME’s two-year-old bitcoin futures are among the most liquid derivative products in the cryptocurrency space…”