Arcane Research data shows that Baked Bitcoin had a new record from September 20 to October 20. This comes after a significant increase in institutional demand for bitcoin (BTC) from public companies in recent months.
Delivery of bitcoins to Bakkt. Source: ICE, Arcane Research.
Bakkt, a digital real estate payment and derivatives exchange platform, is aimed at US institutional investors and is operated by the Intercontinental Exchange, the parent company of the New York Stock Exchange.
When the volume of the Baked Bitcoin futures market, which is actually settled against bitcoin contracts, increases, it usually indicates an increase in the institutions’ desire for digital assets.
The volumes of CME, LMAX Digital and Bakkt show that the institutional Bitcoin market is growing rapidly.
The volume of BTC futures contracts on the stock exchange. Source: data on digital assets.
As explained above, data from Cointelegraph and Digital Assets reflects a significant increase in futures volume across several exchanges in October.
There are 400 BTC contracts expiring at Bakkt, according to analysts from Arcane Research. Monthly data show an increase of 14% compared to September.
Bakk’s size and open interest are important for measuring the company’s activity, as it is one of three platforms that are widely used by organizations alongside LMAX Digital and CME.
Thus, Arcane Research reported that the significant increase in Baked futures supply indicates an increase in institutional demand. Researchers note:
Another transfer of ATH BTC to Bakkt this month. More than 400 bitcoin futures were suspended before the end of October, up 14% during September. With another record high at Bakkt, demand for bitcoin is growing among institutional investors. ”
In addition to high trading activity in Bakkt, LMAX Digital and CME, they are still in high demand.
Skewed data shows that LMAX Digital is still the world’s largest spot exchange by volume. LMAX Digital has processed $ 135.6 million in BTC over the past 24 hours, Skew said. This exceeded the daily volume of Coinbase, Kraken and other major retailers.
Bitcoin spot size is over 24 hours. Source: Skew
Since LMAX Digital primarily promotes institutional trading, the exchange that bypasses Coinbase reflects the current institutional landscape of Bitcoin. There is a lot of demand from companies, especially after the recent major investments from Square and MicroStrategy.
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Like Bakkt, the CME Bitcoin futures market has also seen an increase in open interest. Since October 2, after a one-month deadline in September, open interest in CME has increased from $ 345 million to $ 561 million.
Open interest rate on CME Bitcoin Futures. Source: Skew
Industry leaders view the company’s growth as positive
Industry leaders and high-value investors in the cryptocurrency market expect that the upward trend in institutional appetite for bitcoin will continue.
Tyler Winklevoss, a billionaire bitcoin investor and co-founder of Gemini, said that bitcoin is becoming the company’s state assets.
When MicroStrategy announced its $ 425 million acquisition of BTC, the company confirmed that it considers BTC to be the company’s most important equity. Winklevoss wrote:
“Bitcoin is on its way to becoming the company’s equity. Michael Sailor and Jack lead. Many other companies will soon follow, and eventually central banks. This is just the beginning. “