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Institutional Frenzy For BTC Exposed By Record-High Bakkt BTC Delivery

Bakkt Galaxy Digital
Bakkt Galaxy Digital

Arcane Research has published data showing that the Bakkt Bitcoin exchange has witnessed yet another record-high month, this one spanning from the 20th of September to the 20th of October. This massive rise runs in tandem with a noticeable rise, these past few months, in institutional demand for Bitcoin (BTC) from various public companies.

Institutional Players Showing More Interest

Bakkt, one of the most prominent derivatives exchanges and digital asset payment platforms out there, stands as a perfectly-tailored service offering for US institutional investors. Bakkt itself is operated by way of the parent company of the New York Stock Exchange (NYSE), the Intercontinental Exchange (ICE).

When the volumes increase in the Bakkt BTC Futures markets, it typically signals that the institutional market has gained a greater appetite for digital assets. It should be noted that Bakkt’s futures are physically settled, meaning that Bitcoin is delivered by the end of the contract.

14% More Contracts Expiring October Compared To September

Arcane Research, a crypto analyst firm, took note that 400 individual BTC contracts on Bakkt are scheduled to expire in October. This shows a month-over-month rise of 14% as opposed to September of 2020, the data shows.

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The open interest and volumes for Bakkt stand as a very crucial way to gauge the levels of institutional activity. This is due to the fact that it’s one of the three platforms most widely used by institutional players, standing alongside names like CME and LMAX Digital.

Due to its prominent role, Arcane Research stated that this substantial increase in deliveries of futures contracts within Bakkt, stands as a clear signal that institutional demand is rising.

Overarching Institutional Interest Growing

Running in tandem with the trends seen on Bakkt, both CME and LMAX Digital have recorded large amounts of demand, as well.

Skew, a data analytics platform, makes it clear that LMAX Digital stands as the top player when it comes to volumes within the spot exchange market. LMAX Digital has managed to process $135.6 million in BTC, doing so within just 24 hours. This exceeds the daily volumes of the major retail-focused exchanges, such as Kraken and Coinbase.

With LMAX Digital being primarily a trade facilitator for institutional players, the exchange itself managing to overtake Coinbase stands as a clear indicator of Bitcoin’s institutional landscape. Institutions are showing a very large amount of demand for crypto, especially after several high-profile investments were made by MicroStrategy and Square.

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