Is it over? CME Bitcoin options trading volume hits a new low, Bakkt trading volume remains at zero
In January of this year, the Chicago Mercantile Exchange (CME) launched bitcoin options contracts. According to an analysis report by JPMorgan, traditional investment institutions have high expectations for this launch, as the first day trading volume ($2.2 million) exceeded that of Bakkt's launch in December of last year ($1.15 million). However, fast forward to today, both CME options trading volume hit a new low, with Bakkt trading volume almost at zero.
Table of Contents
- Bakkt has only had 4 days of trading volume since mid-January
- Deribit still dominates the Bitcoin options contract market
Significant Decrease in Demand for Bitcoin Options Contracts
According to data from the crypto analytics platform Skew, the Chicago Mercantile Exchange (CME) traded only three Bitcoin options contracts on Tuesday, totaling only 15 bitcoins (approximately $80,000). This is a significant drop from the previous historical low of $125,000 on January 24th.
Despite the price volatility, it seems that institutional investors are not showing much interest in Bitcoin options trading. When CME options launched on January 13th, trading volume was $2.2 million on the first day, surpassing their competitor Bakkt ($1.15 million).
However, on January 17th, CME set a new high in options trading volume at $5.4 million, but has since been declining. Compared to $2.1 million on March 9th, the trading volume has dropped by 96%.
Meanwhile, Bakkt launched options trading on December 9th, reaching a new high on January 8th ($528,000). With CME's options launch, Bakkt's trading volume completely disappeared, and since February 27th, options trading has remained at zero. There were only three days with minimal trading volume between January 20th and February 26th.
In addition, Deribit, which dominates the Bitcoin options market, saw its trading volume drop to $52 million, marking its lowest level since March 1st. Currently, Okex closely follows Deribit in options trading volume.
Looking at the data from the past three months, Bakkt's open interest is far behind CME, with both levels returning to those of December last year. The performance of the two exchanges targeting institutional investors indicates that trading levels have returned to the lackluster interest of 2019.
Bakkt Completes $300 Million Financing
Despite Bakkt's poor performance in the options market competition, it announced on March 16th that it had completed a $300 million Series B financing round. According to their official blog announcement, investors include Microsoft's venture fund M12, Boston Consulting Group, and payment service provider PayU, among others.
As previously reported, their new slogan is: Bakkt will convert all your digital assets into cash. In addition to integrating digital assets into reward point programs, they also plan to launch the Bakkt APP this summer.
Related Reads
- Breaking News: Bakkt secures $300 million in funding, new slogan "Bakkt will convert all your digital assets into cash"
- Strategic layout for asset tokenization? Winklevoss brothers' exchange launches NFT dollar trading market
Join Telegram now for the most accurate financial technology information, blockchain insights, and industry examples!
Related
- FBI issues coins to catch market makers! Counterfeiting trades amount to trillions in a single day, selling services to exploit investors.
- Decrypt's parent company launches prediction market MYRIAD, allowing direct interaction with YouTube, X tweets.
- In-depth investigation of the Chinese cryptocurrency market: From trading habits and MBTI to popular trends, revealing the true Chinese-speaking crypto community.