More Bakkt futures contracts are settled in Bitcoin than in cash

Published on by Cryptoslate | Published on

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With an average daily volume of $14 million in the past month, more traders seem to be attracted to futures contracts that are settled in Bitcoin.

Physically-settled futures present a bullish case for Bitcoin.

Bitcoin closed out its best January in the past seven years in 2020, pushing its institutional volumes up with it.

According to BakktBot, the total open interest on Bakkt's Bitcoin futures now stands at around $17.8 million.

Data shows more traders looking to settle their futures in Bitcoin than in cash.

The growing open interest on Bakkt's Bitcoin futures is mirrored in the growth in its volumes.

Data from Skew has shown that more Bakkt contracts are being settled with physical Bitcoin than in cash.

According to Skew, Bakkt's cash-settled Bitcoin futures saw an average volume of around $11 million last month, while the physically-settled contract recorded an average volume of $14 million at the same time.

The growing number of institutional traders choosing to settle their contracts in Bitcoin presents a bullish case for the cryptocurrency.

Arcane Research reported that the 230 Bakkt Bitcoin futures contracts that went into delivery on Jan. 17 represented over $2 million in notional value.