Bakkt

[gentlemand]

It's going to be interesting to see how places like this and CME are going to react as the actual Bitcoin market starts to take control again. They're going to rue the fact that they're not 24/7 and traders of the real deal are going to exploit this to the hilt.

'Taming Bitcoin' may likely turn out to be the exact opposite as it wreaks havoc.

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[1713557462]

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[exstasie]

It's going to be interesting to see how places like this and CME are going to react as the actual Bitcoin market starts to take control again. They're going to rue the fact that they're not 24/7 and traders of the real deal are going to exploit this to the hilt.

'Taming Bitcoin' may likely turn out to be the exact opposite as it wreaks havoc.

With any luck, Bitcoin will force the traditional markets to become 24/7.

I've always thought markets closing at all was kind of a scam. Institutional traders are hedging in pre-market and post-market sessions while the rest of us plebs always have to wait until Monday morning, only to get screwed over by massive gaps. Now they know the feeling!

[Febo]

Last week was new record as it was expected. But It is funny to see how 8 weeks ago volume just made a leg up and now is way higher same as it happened after first 4 weeks in last November. Wonder when we wil see another leg up. To over billion or several billion weakly volume.

[fillippone]

Last week was new record as it was expected. But It is funny to see how 8 weeks ago volume just made a leg up and now is way higher same as it happened after first 4 weeks in last November. Wonder when we wil see another leg up. To over billion or several billion weakly volume.

Bakkt really need to scale up. If you look at overall futures volume they are well behind all other exchanges. They are tiny even compared to their main competitor CME. I might be wrong here, but I think they needed to be more relevant in terms of market share at this point (not to mention their options market, or rather lack of)

[Karartma1]

Last week was new record as it was expected. But It is funny to see how 8 weeks ago volume just made a leg up and now is way higher same as it happened after first 4 weeks in last November. Wonder when we wil see another leg up. To over billion or several billion weakly volume.


[img widht=200]https://pbs.twimg.com/media/EiYIBtcX0AARJP8?format=jpg&name=900x900[/img]

Bakkt really need to scale up. If you look at overall futures volume they are well behind all other exchanges. They are tiny even compared to their main competitor CME. I might be wrong here, but I think they needed to be more relevant in terms of market share at this point (not to mention their options market, or rather lack of)

Yes, they are losing ground. Bakkt started like the non plus ultra of the Bitcoin futures world and look at it now. We can agree that the market is still in its early stages but, as you pointed out, I expected more from them. When the next bull run will start, I'll be curious to watch their market share. Don't get me wrong, for what it's worth, to me they can collapse. We don't need no Bakkt (or CME).

[fillippone]

<...>
 Don't get me wrong, for what it's worth, to me they can collapse. We don't need no Bakkt (or CME).

I disagree here. Every instrument useful for Bitcoin price discovery is more than welcome in the market arena. Even if it is used to induce volatility or price manipulation. Market has to be proven resilient to such (weak) attacks to demonstrate Bitcoin as a reliable Store of Value. Stress test is important, and we cannot rely on regulations to protect investors as in traditional markets.

[Karartma1]

<...>
 Don't get me wrong, for what it's worth, to me they can collapse. We don't need no Bakkt (or CME).

I disagree here. Every instrument useful for Bitcoin price discovery is more than welcome in the market arena. Even if it is used to induce volatility or price manipulation. Market has to be proven resilient to such (weak) attacks to demonstrate Bitcoin as a reliable Store of Value. Stress test is important, and we cannot rely on regulations to protect investors as in traditional markets.

That's good not to be on the same page. I keep my position: I don't think these instruments are necessary. As the future markets worked like a handbrake for gold, they sure can do the same to bitcoin. I guess the following article summarizes what I would like to express. Have a read 
https://medium.com/swlh/will-the-futures-market-do-to-bitcoin-what-it-did-to-gold-b7d35704641

[fillippone]

Bakkt hit the news again today:

Crypto Exchange Bakkt Nears Merger With Victory Park SPAC

Bakkt, the cryptocurrency platform majority owned by Intercontinental Exchange Inc., is in advanced talks to go public through a merger with blank-check firm VPC Impact Acquisition Holdings, according to people with knowledge of the matter.

The transaction is set to value the combined entity at more than $2 billion, and an announcement may come as soon as next week, said the people.

Looks like ICE is dumping the investment, in my opinion.

Bakkt had the purpose of servicing physical bitcoins to institutional investors, but ultimately lost the battle with CME:



Trading volumes are tiny, compared to CME.

Volumes on less-regulated exchanges are multiple but probably inflated by training bot activities.

Looking at the more relevant Open Interest positions (Institutional money usually leaves the position open over long periods of time, while day trader usually close their position overnight, leaving no traces on Open Interest the CME gains relevance, but Bakkt still is a tiny fraction:

[fillippone]

Bakkt is trying to find new directions for their business:

Bitcoin Company Bakkt Awarded BitLicense in New York

The bitcoin-focused subsidiary of Intercontinental Exchange was awarded both virtual currency and money transmitter licenses.

• According to an announcement from DFS Superintendent Linda Lacewell on Thursday, the virtual currency license will allow Bakkt Marketplace, a wholly owned subsidiary of Bakkt Holdings, to offer its New York customers the ability to buy and sell digital currencies.
• The firm was also granted a money transmitter license. The licenses bring Bakkt under DFS supervision for its licensed activities.
• "This approval provides additional virtual currency options to New Yorkers as the state continues to rebuild and recover," said Lacewell.
• "This represents a major milestone to achieving our vision of making digital assets accessible to all, and we’re thrilled to continue driving innovation in this rapidly evolving industry, highlighted by the upcoming launch of the Bakkt App," said Bakkt CEO Gavin Michael.

A complete regulatory offering for sure will help Bakkt gaining market shares providing services to US firms, who are in dire need of a vehicle to get exposure to Bitcoin. Or someone who is able to provide custodian services for those.