A week after the launch, the Bitcoin futures debut trading reports are below all expectations. But J.P. Morgan Chase & Co. believes it’s not the low trade volumes but something else that led to the market meltdown.
J.P. Morgan Chase & Co. holds a different theory based on a deeper analysis. A team of strategists led by J.P. Morgan Analyst Nikolaos Panigirtzoglou associate BTC futures with market maturity. But, they believe it did offer miners an opportunity to hedge exposures.
According to J.P. Morgan, the listing of physically settled futures contracts opened up a window for physical bitcoin holders to sell-off. And Bitmex futures happened to be the choice for long position holders.
Indeed, it was quite a disappointing start for BAKKT. After multiple regulatory setbacks and a yearlong hype, the platform was able to trade only $5.8 million in the last seven days. Both the institutional and retail investors stand underwhelmed as the trade volume fails to impress. BAKKT’s proponents believe the adoption of BTC futures is slow as institutional investors are testing the waters. And we have to wait till it attracts substantial trade volumes.
If that does not happen soon, Bitcoin prices might see new lows.
Amidst all disappointment, the excitement around BAKKT seems to be dying down.
Source: Google Trends
Some crypto-commentators stated in the past that the launch of BAKKT will have no impact on BTC prices. And a pump will be seen only on the date of delivery. Little did they envision such a massive sell-off.
We will have to wait and watch how the interest and volume alters. But right now the market performance of cryptocurrencies remains a major concern.