Cryptocurrency Derivatives Series: What’s Buzzing in Bitcoin Derivatives Market? A Quick Check on Volumes and Open Interest

Bakkt began with tepid momentum though, their futures have gradually found the bullish momentum with the number of open interest (OI) contracts reaching an all-time high value of $1.26 million as of November 4th.

Well, it was a constructive week for both BTC price as well as for the Bakkt derivatives platform with October 25th seeing Bakkt futures trading a record 1,179 contracts in one day. 

There were sources of news to divulge it had conducted its first block trade while also seeing a 796% jump in futures trade volume in a one intra-day trading session. A little more than a week later, Bakkt contracts reached another milestone with 640 BTC swapped on October 23rd.

In addition, the institutional grade futures of CME are also gaining popularity as the number of OI contracts rose 383% since August.

Despite numerous counterparts, CME is still the front-runner among the cryptocurrency derivatives marketplace.

CME Futures volumes have shown a rise from 2,873 contracts in Q3 2018 to 5169 open contracts as on date.

BTCUSD has been oscillating in the tight range of $9k - $10k from the last couple of days. As expected, the CME BTC Futures price has filled in the gap that was established during last week’s vigorous rallies. Now, the underlying price seems to be prepared for another bull run.

Hence, the pair (BTCUSD) has retraced towards $9k level which was in the process of filling-up the gap, now shows the firmness at the strong support at $9,000 – $9,021 areas.

Most importantly, Both CME and BAKKT has also announced it would be launching an options product in Q1’2020 and in December respectively.

Overall, as we could foresee upside traction in the underlying price of BTCUSD, long hedges were advised in our recent posts. With a view of arresting upside risks we wish uphold the longs in CME BTC Futures of November’2019 month deliveries. 

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