Record Bitcoin Delivery on Bakkt Exposes Institutional Frenzy for BTC

Bakkt posted a record Bitcoin delivery in October, demonstrating a clear increase in institutional demand for BTC. Data from Arcane Research shows that the Bakkt Bitcoin exchange experienced another record month from September 20 to October 20. This coincides with a notable increase in institutional demand for Bitcoin (BTC) by public companies in recent months.

Bakkt, the digital asset payment platform and derivatives exchange, is designed for institutional investors in the United States. It is operated by the Intercontinental Exchange, the parent company of the New York Stock Exchange.

When the volume of Bakkt’s Bitcoin futures market increases, physically liquidating Bitcoin contracts, it generally demonstrates the growth of institutional appetite for digital assets.

The volumes of CME, LMAX Digital and Bakkt show that the institutional market for Bitcoin is growing rapidly.

As shown in the graph above, Cointelegraph and Digital Assets Data reflect a significant increase in futures volumes across multiple exchanges during the month of October.

According to analysts at Arcane Research, 400 BTC contracts will expire in October on Bakkt. Month-over-month, the data shows a 14% jump from September.

Bakkt’s volume and open interest are important for measuring institutional activity because it is one of three platforms widely used by institutions alongside LMAX Digital and CME.

As such, Arcane Research said that the substantial increase in futures contract deliveries at Bakkt means increased institutional demand. The researchers noted:

“Another all-time high in BTC delivery on Bakkt this month. More than 400 BTC futures contracts will expire in October, an increase of 14% from September. With another record month on Bakkt, bitcoin demand is increasing among investors. institutional “.

In addition to the high commercial activity at Bakkt, LMAX Digital and CME are also continuously in high demand.

$ 22 million in Bitcoin moves from Huobi to OKEx despite withdrawals freeze

Skew data shows that LMAX Digital remains the world’s largest spot exchange by volume. According to Skew, LMAX Digital processed $ 135.6 million worth of BTC in the last 24 hours. This outpaced the daily volume of Coinbase, Kraken, and other popular exchanges focused on retail investors.

Since LMAX Digital primarily facilitates operations for institutions, the exchange’s outperforming Coinbase reflects the current Bitcoin institutional landscape. There is strong demand from institutions, especially after the recent high-profile investments from Square and MicroStrategy.

Like Bakkt, CME’s Bitcoin futures market has also seen a surge in open interest. Since October 2, following the monthly expiration of September, the open interest of CME’s Bitcoin futures went from $ 345 million to $ 561 million.

Crypto Industry Executives See Institutional Growth Positive

Industry executives and high-net-worth investors in the cryptocurrency market expect the trend of increasing institutional appetite for Bitcoin to continue.

Tyler Winklevoss, the billionaire Bitcoin investor and co-founder of Gemini, said that Bitcoin is constantly evolving into a corporate treasury asset.

When MicroStrategy announced that it had purchased $ 425 million worth of BTC and emphasized that it regards BTC as the company’s main treasury asset. Winklevoss wrote:

“Bitcoin is on its way to becoming a corporate treasury asset. Michael Saylor and Jack lead the attack. Many other companies will soon follow, and eventually central banks. This is just the beginning”.


Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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