Bitcoin futures trading at Bakkt has broken another milestone this week. Following last week’s record-breaking haul for trading volume—over the last two weeks, open trading interest has rocketed from under $1 million to a record $6.5 million yesterday.
In comparison to daily trading volume—that indicates the volume of trades that were executed on the platform on any given day—open interest is the total sum of all traders with active “Long” or “Short” trading positions open at the CFTC regulated exchange.
Interestingly, the recent surge in trading interest could indicate a longer-term bullish outlook for the future’s platform.
In contrast to daily exchange volume—that can often see large spikes due to sharp movements in Bitcoins price—open interest is more of a stable measure to understand how interested Bakkt’s predominantly US institutional trader base is to the Bitcoin-settled futures product. Read More...