Bakkt trading volume hits a record high, CME bullish momentum strengthens, is the wave of institutional investment in Bitcoin on the horizon?

With publicly traded companies like MicroStrategy and Square announcing their purchases of Bitcoin as a hedge against risk, along with the increasing amount of Bitcoin being held in Grayscale's Bitcoin Trust, and the record-high trading volume and open interest contracts on Bakkt's physically-settled Bitcoin futures platform, institutional interest in the cryptocurrency market seems to be growing.

Bakkt Trading Volume Hits All-Time High

According to data from digital asset data analysis firm Arcane Research, the trading volume of the Bitcoin physically delivered futures platform Bakkt reached a new all-time high between September 20 and October 20 (data not yet finalized).

Bakkt Exchange is a Bitcoin derivatives trading platform tailored for U.S. institutional investors and operated by Intercontinental Exchange, the parent company of the New York Stock Exchange. Initially, the platform's performance was below market expectations.However, with more institutions participating and the increasing demand for Bitcoin from publicly traded companies, Bakkt Exchange's trading volume has seen a significant increase.

Analysts from Arcane Research stated that about 400 Bitcoin physical delivery contracts on Bakkt are set to expire in October, a 14% increase compared to the previous month. The volume and open interest contracts on Bakkt are crucial parameters for measuring institutional activity. In the U.S., the platform is one of the three major digital asset trading platforms widely used by institutional investors alongside LMAX Digital and the Chicago Mercantile Exchange (CME).

CME Bullish Momentum Strengthens

In addition to Bakkt, the trading volume performance of the CME platform has also been outstanding. From early October to October 13, institutional investors' long positions increased by over 9%, pushing the total open interest contracts for long positions to a new historical high of 3,500 contracts set in mid-September.

Institutional Participation Expected to Continue Rising

Since MicroStrategy announced the acquisition of $425 million worth of Bitcoin, it seems to have significantly boosted institutional confidence in entering the cryptocurrency market. Many industry executives and high-net-worth individuals in the cryptocurrency market believe that the trend of increasing institutional demand for Bitcoin will continue to rise. Tyler Winklevoss, early Bitcoin investor and co-founder of Gemini, previously stated that Bitcoin is steadily evolving into a corporate treasury asset. Tyler Winklevoss said:

"Under the leadership of Michael Saylor (CEO of MicroStrategy) and Jack (founder of Square and Twitter), Bitcoin is becoming a corporate asset, and more and more companies will follow suit soon, followed by central banks. This is just the beginning."