Bakkt is done?

[2double0]

We were all waiting eagerly for its release and since it launched its Bitcoin options on December 9, a wave of happiness was spread among everyone that now BTC will be moon, now we will lambo and what not. But, what happened defines a very different story and we can't deny how badly the last 10 days went for Bakkt when zero trading volume knocked their doors.

https://www.theblockcrypto.com/post/54294/bakkts-bitcoin-options-saw-zero-volume-last-week

Go there and read, how calmly the ICE's spokesperson said during a recent interview that Bakkt continues to see “strong” interest in both its bitcoin options and futures products.

If that is the case, why their working product is yet not being used since 10 days and why the volume of institutional investors is so low at Bakkt compared to CME futures?

[The Sceptical Chymist]

Go there and read, how calmly the ICE's spokesperson said during a recent interview that Bakkt continues to see “strong” interest in both its bitcoin options and futures products.

Yeah, that sounded like a typical public relations statement putting a spin on a bad situation and I wouldn't put much faith in it.

Very interesting.  I was among those who thought Bakkt would boom once launched, because I'd figured that hedge funds and other big-money investors would want in on the crypto game, and the only good way to do that would be through futures and options.  Apparently the reception is tepid at best, and I'm kind of surprised to see that.

Even the volume on the CME seems pretty low.  I've no idea what's going on behind the scenes, but my guess is that if business doesn't pick up on Bakkt, they'll shut their doors.

[CryptoBry]

Go there and read, how calmly the ICE's spokesperson said during a recent interview that Bakkt continues to see “strong” interest in both its bitcoin options and futures products.

Yeah, that sounded like a typical public relations statement putting a spin on a bad situation and I wouldn't put much faith in it. Very interesting.  I was among those who thought Bakkt would boom once launched, because I'd figured that hedge funds and other big-money investors would want in on the crypto game, and the only good way to do that would be through futures and options.  Apparently the reception is tepid at best, and I'm kind of surprised to see that.Even the volume on the CME seems pretty low.  I've no idea what's going on behind the scenes, but my guess is that if business doesn't pick up on Bakkt, they'll shut their doors.

We are made to believe that once there can be a Bakkt platform then institutional investors will be coming in like an avalanche, and we can witness Bitcoin to boom and bloom like a lively garden of roses. Eventually, we realized that we were just hyped. The market of Bakkt is not responding well and there are more chances that this can go under the ground if this platform is not saved from its eventual extinction. Now, I am wondering if Bakkt is going to fail what will it mean to Bitcoin? Does it mean that actually institutional investors are not really into Bitcoin or are they looking for another form of an infrastructure like an ETF maybe?

[Saint-loup]

My theory is institutional investors prefer other futures and options exchanges because they use the price of BTC on few unregulated and unmonitored exchanges to make the settlements. While Bakkt is making the settlements with its own price. Bakkt is regulated and monitored with circuit breakers, etc, and is only used by professional traders, so manipulating the price there is much harder.

[davis196]

The claim that a large number of institutional investors are interested into buying Bitcoin futures was just hype and propaganda.The Bakkt hype is over and I couldn't care less about this project.
Bitcoin core is strong, with or without Bakkt.We should never rely on the mercy of a bunch of institutional investors to pump/dump the price.We already have crypto whales,which is the sad truth.
Only mass adoption will liberate the bitcoin price from manipulations.
 

[Wexnident]

I mean, who would admit that their services offered are receiving zero returns and notice right? It's all public relation matters to entice the masses but should be more specifically catered to those investors and higher-ups of theirs, while those at the center of the project themselves bust their asses to try and fix the problem at hand.

Even the volume on the CME seems pretty low.  I've no idea what's going on behind the scenes, but my guess is that if business doesn't pick up on Bakkt, they'll shut their doors.

Considering that they both entered the options scene, CME is way too ahead of Bakkt. And even if what we are seeing right now seems pretty low, you could still say that CME Options just launched 2 weeks ago. Still, this stops those big investors and makes them rethink their decisions as of the moment on whether they should enter the crypto scene. A reception such as what Bakkt showed should have scared them quite a tad bit imo.

[gentlemand]

Hopefully the professionals in this space have an attention span above that of a gnat, unlike the non pros.

This type of thing may take years to gain traction. If they haven't planned for that then they're morons. Like Circle are.

When it does they will have money pouring out of their botty.

[el kaka22]

I guess being both on the side of government and offering something so risky didn't really appeal to rich people. They were really aiming at the wrong crowd for something like this, bitcoin is the currency of anarcho-revolutionists and when you give that coin to old white rich dudes they wouldn't really know what to do with it, plus they are not looking eagerly for something that will make them a ton of money by risking almost all of their money, hence why they didn't showed interest.

Why did other cme futures and all that made some news on crypto world? Because, you could be either anonymous or almost anon when you used it, as long as nobody asked for it you could stay hidden and still risk it plus you could get in with very small amount and make it higher, that is what crypto people want.

[CarnagexD]

We were all waiting eagerly for its release and since it launched its Bitcoin options on December 9, a wave of happiness was spread among everyone that now BTC will be moon, now we will lambo and what not. But, what happened defines a very different story and we can't deny how badly the last 10 days went for Bakkt when zero trading volume knocked their doors.

https://www.theblockcrypto.com/post/54294/bakkts-bitcoin-options-saw-zero-volume-last-week

Go there and read, how calmly the ICE's spokesperson said during a recent interview that Bakkt continues to see “strong” interest in both its bitcoin options and futures products.

If that is the case, why their working product is yet not being used since 10 days and why the volume of institutional investors is so low at Bakkt compared to CME futures?

It's kind of sad to see this since I myself have been a bakkt supporters when it was released and is receiving hype from everyone. However, they might have plans in the future under their sleeves. Let's wait for things to pan out for the meantime. With a CEO as calm as they have right now, it's pretty much obvious that they have been cooking something under our noses.

[fillippone]

I think there is a huge misunderstanding here.

Bakkt is a platform launched by ICE (InterContinental Exchange) to counter the monopoly of CME in the listed bitcoin futures.
CME is a global future trading powerhouse, and already crushed a competitor (the CBoE) on the field.
Bakkt has a slow start, yes, but I think it was related to a couple of very specific reason, they were well aware of:

• Firstly, there are (mainly) dealing with physically settled futures. This imply a very peculiar workflow. This is the same problem with all other physically settled futures: while trading a future on coffe is a thing, taking delivery of a future of coffe is a totally different work. A lot of institution were simply forbidden to trade anything that could one day, be it for error, for some system failure or any other reason, transform in something they couldn’t handle.
• secondly, but partially related to the first one, is the fact that there were a very strong regulatory obstacle for many users of Bakkt to get in touch with physical bitcoin. Be it from Central Banks, targeting banks and other regulated subjects, or even internally created. I don’t thin, for example many asset managers had an investment mandate allowing PM to buy bitcoin on behalf of their clients. Bear in mind that “fast money” didn’t had to wait for Bakkt, and already moved to physical bitcoin years before.

Having said so, I guess the market had too much expectation on Bakkt, dreaming of a Big Bang of volume who never materialised. Those who built positions according to this view were heavily punished in the days following the Bakkt launch debacle.

Now things have changed.

Today Bakkt and CME are at their maximum open interest ever.
I am reluctant to call those future instruments failures.
I discussed this concept  here , where there is a graph showing Bakkt record open interest registered today.

Options are still lagging behind. I am fairly disappointed and surprised by the low volumes, but also CME just launched and those are very technical markets. I think the liquidity is not there yet to be useful markets for institutional players.

So, negative OP: Bakkt is not done.

[Yaunfitda]

I think its early to conclude that Bakkt is done. If you looked at the trading volumes here:

https://twitter.com/BakktBot/

You can see that there are continues flows of volumes, it might be low because of the so much hype around it, but I guess it doesn't gain the needed traction as of this time. Remember that around Oct-Nov, it was reported that their volumes suddenly exploded, but it might be too soon.

Maybe investors are not really into this so called "options" or as I have said, it needed more time to slowly sink in.

[mu_enrico]

I'm afraid this is actually the real trading situation on the whole BTC market since most of the BTC volume is fake or bots. But, perhaps traders just didn't want to trade futures, options, etc. Come on man, margin trading on a highly volatile asset is "crazy." You need steel balls to do that. lol

[fillippone]

I'm afraid this is actually the real trading situation on the whole BTC market since most of the BTC volume is fake or bots. But, perhaps traders just didn't want to trade futures, options, etc. Come on man, margin trading on a highly volatile asset is "crazy." You need steel balls to do that. lol

Being CME and BAKKT institutional investors oriented markets, I think it is highly improbable they are pumping their volumes. Such practices would be illegal in many traditional financial markets, so I think it’s not worth risking their billions a day trading reputation for something (bitcoin related products) that is now totally marginal in their balance sheets.
But I get what you mean: probably times aren’t mature enough yet for these products.

[1Referee]

Come on man, margin trading on a highly volatile asset is "crazy." You need steel balls to do that. lol

People in crypto are retarded.

Institutions are perfectly happy trading Bitcoin during a boring day because that is still good for 1-2% movements, while tranditional markets generally move about a tenth of that during a boring trading day. In these traditional markets it's normal to use leverage to boost your upside, while in crypto it's somewhat unnecessary, but people are accustomed to this risk now.

I still trade spot from time to time without leverage and I'm super happy when I make a gain. I don't have to worry about getting liquidated due to killer wicks we see a lot on platforms such as Bitmex. Whenever I am trading on Bitmex the highest leverage I go with is either 2 or 3x (mostly 2x). Why add more unnecessary risk? Profit is profit.

[gentlemand]

Come on man, margin trading on a highly volatile asset is "crazy." You need steel balls to do that. lol

But that's what many newcomers who've never traded in their entire lives do the moment they arrive on the scene. It's bizarre but they seem to think it's the fashionable thing to do. I hope they enjoy their utter ruin.

[monineklutak]

sad reality, in 2019 Bakkt was used as material for FOMO Bitcoin and after Baakt was launched it looked disappointing, this made me think about Eth 2.0 information, and Halving Bitcoin this year, would it be like Baakt's fate?

[gentlemand]

sad reality, in 2019 Bakkt was used as material for FOMO Bitcoin and after Baakt was launched it looked disappointing, this made me think about Eth 2.0 information, and Halving Bitcoin this year, would it be like Baakt's fate?

We can talk about Bakkt's fate after it's been established for 5-10 years. Until then it's still finding its feet. There'll be dead phases. There'll be explosive phases.

Anyone who expected Bakkt to singlehandedly ignite a dead market is a twat. It's one solitary service for a small number of people. It might facilitate further bullishness when the time comes, it certainly doesn't magic it up out of thin air.

[BitHodler]

sad reality, in 2019 Bakkt was used as material for FOMO Bitcoin and after Baakt was launched it looked disappointing, this made me think about Eth 2.0 information, and Halving Bitcoin this year, would it be like Baakt's fate?

Bakkt has done much better than I expected it would do, but it seems that in the last couple of days the volumes are on the way down again, possibly because of their market makers taking a step back.

Bitcoin's halving is such a non happening as far as speculation goes. Do people seriously believe that the large funds are going to buy in right now because of the halving? They have done that early 2019 and currently sit on a sweet pile of coins.

Markets price important happenings in before the mainstream media starts reporting about it, and I do believe that Ethereum 2.0 isn't any different because it has been on the roadmap for such a long time.

[Juggy777]

sad reality, in 2019 Bakkt was used as material for FOMO Bitcoin and after Baakt was launched it looked disappointing, this made me think about Eth 2.0 information, and Halving Bitcoin this year, would it be like Baakt's fate?

We can talk about Bakkt's fate after it's been established for 5-10 years. Until then it's still finding its feet. There'll be dead phases. There'll be explosive phases.

Anyone who expected Bakkt to singlehandedly ignite a dead market is a twat. It's one solitary service for a small number of people. It might facilitate further bullishness when the time comes, it certainly doesn't magic it up out of thin air.

@gentlemand I don’t blame these people because Bakkt was hyped up to be the saviour of the crypto market, and their PR team should have marketed it less then maybe people would have been able to tone down their expectations from Bakkt. However you have raised a valid point too, and we all need to give Bakkt at least few more years before we can say it done for good.

[Febo]

Bakkt is done?

BAKKT is exactly this much done.  19 weeks of existence and volumes of all weeks are on the chart. You can see the trend how done is BAKKT compared to the first weeks.