Just over a month since the launch of bitcoin options contracts on the international platform Bakkt, the exchange seems to have experienced a less than favourable uptake.
According to the latest reports for the contract released earlier this week, it shows that 11 days have gone by since the last trade was executed on the platform.
For those that don’t know, the Bakkt platform kicked off its bitcoin options contracts early last month. This came after they launched the cash-settled bitcoin futures offering the month prior to this. The bitcoin options are derivatives that have been designed to help provide traders with more leeway in hedging against the volatility of an asset - whether that is negative or positive. Due to this, an options contract gives them the opportunity to buy either a call option or a put option. This means either a right to buy or sell respectively. This applies to the asset in question that is a specific, so-called strike price, which was to be determined on or before the expiration date of the contract in question.
These future contracts were seen and met by the crypto community in an unexpected and very disappointing manner. In the first week of its launch, things didn’t pick up as was expected, especially given the hype that the platform had been building a year prior. This was a fact that was very clearly seen straight after the fiat settled bitcoin futures on the CME platform which was launched in December 2017 during the markets infamous ICO bubble.
Eventually though, people started getting more involved with the platform and movement was being made on the futures options futures contracts. This came in correlation with a time of extreme volatility on the leading cryptocurrency from October to November 2019. Looking elsewhere, market commentators and prominent platforms such as OKEx launched or at least planned to release their own bitcoin options later in 2020.
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!
