The ICE, or Intercontinental Exchange’s much hyped Bitcoin and Digital Asset Derivatives trading platform Bakkt may have had a yawn of a launch, registering under a hundred futures contracts when it first launched on September 23rd,2019. Now over a month since, the platform appears to be picking up momentum, having reached a record number of contracts traded on it – on the back of a Bitcoin price rally sparked by China announcing that the Asian nation had reversed its previous stance on digital currencies.
Bakkt has seen a steady uptick in trading volume since the paltry numbers it experienced at launch. The Bitcoin futures exchange platform, saw a record number of contracts traded on the 26th of October. Bakkt announced in a tweet, that the exchange had experienced a record daily contract trading volume of 1,179 Bakkt Bitcoin Futures.
About 12 hours later, a bot account on Twitter known as @BakktBot, which monitors and periodically gives reports on the trading volume on the Bakkt Platform gave a higher an even higher reading. According to the BakktBot account, 1183 contracts had changed hands on the exchange. The 1183 contracts, settled in actual Bitcoin, were collectively valued at $10.3 million.
“Watch Bakkt volumes,” declared Fundstrat Head of Research Tom Lee in a tweet earlier that month, before suggesting that activity on the platform gave a clear indication of institutional demand for Bitcoin. Bakkt, which boasts the backing of tech giant Microsoft as well as global coffee peddler Starbucks was touted as a game changer for crypto markets, but has, thus far, made no measurable difference in the price of Bitcoin.
Bakkt may still be the vehicle through which digital assets achieve mass adoption as they have recently announced a consumer focused app. Bakkt’s Chief Product Officer, Mike Blandina, announced in a Mike Blandina, announced in a blog post that the firm was in the process of developing a payment app, which will enable consumers to spend digital currencies when buying goods or services from merchants.
Back in 2018, when the Bakkt initiative was first publicized, the firm said it would leverage a partnership with Starbucks and various other firms to offer a retail experience – though details on this aspect were scant. Bladina’s post offers more clarity, as well as suggests that said app may offer consumers options, in terms of which digital asset they would like to spend, though Bakkts Futures platform only supports Bitcoin trading.
“A key feature of the model we’ve designed is to support a superset of digital assets, including cryptocurrencies as seamlessly as investors transact in stocks in a retail brokerage account,” – reads the blog post “Our vision is to provide a consumer platform for managing a digital asset portfolio, whether they wish to store, transact, trade or transfer their assets.”
The app, due sometime during the first half of 2020, will be geared at driving integration and effeciency between digital asset wallets, as well as the transaction processing and acceptance side of commerce. This is intended to drive digital asset adoption, by enabling consumers to interact with digital currencies in a hassle-free fashion.
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