Yesterday everyone witnessed the launch of Bakkt’s real-time bitcoin settlement platform. It is a future platform with implementations that would open the portal to institutional platforms who are keen on investing in Bitcoin. However, the trading volume was quite low as of yet. But the slow launch won’t stop it from being an imperative development.
For the aggregates crypto market, it will provide a credible amount of semblance to big investors who are looking for an easy and safe outlet for BTC investment.
Low BTC trading volume
The crypto community experienced resounding disappointment during yesterday’s Bakkt’s launch of their platform. The trading volume has increased since the launch but the numbers are still not convincing enough as opposed to the other crypto exchanges.
However, the underlying importance is what most analysts are talking about. Luke Martin, for instance, has cited that this platform provides a more robust BTC lending structure in the market with legitimized asset trading.
It also eases the manipulation risks and other disruptions. This platform would also disrupt the OTC market functions too. So, the long-term effect is what they want crypto users to focus on instead off the short-term impact it has on the market.
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Will this invigorate any institutional interest?
The platform made by Bakkt has been custom made for large institutional investors and retail entities. So, they can use this platform to trade in large volumes which was primarily aimed to gauge interest in such institutions.
With 2020 nearing the market, the institutions are foraying into the nascent markets and the availability of this platform will help big investors and brokers enter these markets.
An Analyst named Joseph Young has stressed on the importance of Bakkt. Even though he is aware of the low trading volume, he has explained that it is highly likely that the volumes will increase since the brokers are already ready to get into the crypto market.
He has also said that Bakkt entering the market before 2020 is a good precedent given that Brokers are ready to trade in large volumes in the future.
It is evident that Bakkt is not being able to garner a lot of traction during its launch. But given the anticipations made by these experts, it is expected that the platform will receive a lot of future traction from traditional hubs since the platform specifically is equipped to trade in large volumes.
This platform is creating a space for future implementation for traditional institutions who will be aiming to invest in a nascent market.
Given that this platform will provide credible and legible resources and asset trade, this platform will be able to cater to such institutions which they have been built to begin with.
With 2019 dragging on towards the end, the market is furthering its development. The trading volume will also show the possibilities Bakkt has over the market. It will also elucidate the interest traditional hubs have over Bitcoin investment.