Bakkt Options Contracts Record Lackluster Traded Volume

Bakkt Options Contracts Record Subdued Traded Volume

Bitcoin options contracts have seen slow performance on the cryptocurrency platform Bakkt of the Intercontinental Exchange (ICE) after less than one month from their launch.

Bakkt saw zero trading volumes last week – January 20-24, the data available on ICE website showed. The last trade was on January 17, when 20 lots had been traded.

However, Skew website’s data showed that no options were traded on the platform in the last 10 days. Skew took the weekends into consideration as well. However, looking at business days would be a more accurate way.

An ICE spokesperson said the exchange is really interested in Bitcoin options and futures contracts.

He added:

“We continue to see strong interest in our growing base of customers in our bitcoin futures and options complex, which offers a broad range of choices for interacting with and hedging positions in digital assets.”

On December 9, Bakkt has launched Bitcoin futures, while CME Group rolled it out on January 13. On the debut day, CME recorded a traded volume of $2.19 million, outperforming Bakkt that recorded $1.15 million.

Tim McCourt, CME managing director, said:

“Options has been a product that’s been in high demand from customers ever since we launched futures back in December 2017.”

“We’re certainly excited to see what happens. Folks are excited about it and we’re happy to bring this new risk management tool to the market,” he added.

In 2017, Chicago Board Options Exchange (Cboe) said it plans to launch BTC futures as of November 12, 2019.

Options are derivatives designed to provide traders with an additional flexibility hedge against fluctuations of an asset. Thus, an options contract allows trader to either buy a right (a call option) or sell (a put option) the asset at a specified price determined on or before the expiry date of the contract.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.