Bakkt’s Bitcoin Options Volume Plunged to Zero Last Week

Bitcoin options listed on the Intercontinental Exchange’s (ICE) Bakkt plummeted to zero, as trading volume on the platform completely withers. 

Over the period between January 20 and 24, trading volume on the exchange was 0, according to the data published by the ICE. The last trading activity was recorded on January 17, when 20 lots got traded.

However, Bitcoin data analytics provider Skew has recently tweeted that Bakkt has seen no trading for its options over the past 10 days, including weekends. 

While Bitcoin options’ performance on the platform remains subdued, the price of the cryptocurrency has recorded a three-month high, increasing its volatility. 

Bakkt issued its first bitcoin options contract on Dec. 9, following the rollout of cash-settled futures, and physically settled futures in November and September.

The physically settled future launched on Sept. 24, and saw a positive response from the market. One month after the rollout, its trading volumes saw a fourfold increase to $4.8 million, as reported by Bakkt Volume Bot, a Twitter account that monitors Bakkt’s trades. 

It’s likely that such a response from the market encouraged the exchange to offer option contracts on Bitcoin. On the other hand, the response to its options product has been poor. During one month after its launch, Bakkt traded $1 million-worth of options.

The ICE representative said in an interview that Bakkt sees “strong” interest in both its bitcoin options and futures products.

“We continue to see strong interest in our growing base of customers in our bitcoin futures and options complex, which offers a broad range of choices for interacting with and hedging positions in digital assets,” it is said in the statement.

However, Bakkt’s competitor, the CME Group, continues to see great feedback from the market for its bitcoin options. As shown on CME’s website, the group traded 59 lots of the options last week, compared to Bakkt’s zero.

While the New York-based platform issued bitcoin options on December 9, the CME Group launched it on January 13. CME Group’s reported volume on day one was $2.19 million, as opposed to Bakkt’s $1.15 million, according to reports released earlier this month.