When Bakkt launched, it introduced a new way for everyone to try a hand in the crypto business without having to deal with the legal hurdles associated with the crypto industry. With Bakkt, everyone, including institutions with big money, can trade Bitcoin futures and contribute to the increasing money in-flow in the Bitcoin industry.
For the last few days, the trading volume on Bakkt has spiked. On one day, the volume went up by about 42%, with about $10 million worth of trades completed. The high volume set a new ATH record for the young futures market.
China Is Into Blockchain
The persistently high BTC futures trading volume on Bakkt can be partly attributed to what’s happening in China. A few days ago, the Chinese government, led by President Xi Jinping, announced its interest in the blockchain technology and hinted at a possible creation of national digital currency.
Seeing as the Chinese have been somewhat reluctant to accept cryptos, the new development was great news for the industry. Bitcoin, being the top coin and with Bakkt facilitating its futures trading, was obviously bound to benefit. The renewed confidence in the industry played a role in the increasing trading volume.
Besides China’s softening stance on cryptos, the launch of Bakkt presented big money investors with a safe channel to step into the crypto space without having to worry about the legality of Bitcoin or the risks associated with crypto trading – Bakkt has put in place sufficient contingencies to cater for that.
As is always the case, growing interest from institutional investors in any industry signifies a huge capital in-flow. The more money gets in, the more the trading volume. That’s what happening. From an optimistic point of view, it’s fair to expect Bitcoin to gain both in value and popularity as a result of the growing interest from institutional investors.