On Sept 30th, Binance research published a market overview that the launch of the institutional trading platform, Bakkt occurred just before Bitcoin’s price slip last week.
On Sept 23rd, Bakkt debuted its Bitcoin futures, three days later BTC/USD plummeted from near $10,000 to under $8,000.
‘Commentators were underwhelmed by the offering that saw negligible trading activity despite executives promising to open up Bitcoin markets.’
“Bakkt was touted by many ‘crypto-observers’ as an additional primary channel to bring large institutional flows into cryptocurrency and digital asset markets. It may certainly still do so in the future, as illustrated by the CME futures sluggish start and subsequent pick-up in volumes. Short-term wise though, Bakkt’s disappointing start seems to have been a contributing factor to the recent price decline.” Binance Research
JPMorgan Risk highlight
Sources from outside the crypto industry built a verdict on similar findings. ‘Last week, it was JPMorgan that was unimpressed, but volumes may not be to blame.’
“It may be that the listing of physically settled futures contracts (that enables some holders of physical Bitcoin e.g. miners to hedge exposures) has contributed to recent price declines, rather than the low initial volumes.” Bloomberg report from Sept 27th
Ironically, Bakkt agreed in some ways agreed with appraisals of its market impact while posting on social media:-
Price discovery unfolding before our eyes On our second day of operations, totally transparent trading in monthly Bakkt Futures Contracts shows Bitcoin ending the day at $8,560 on 166 lots changing handshttps://t.co/QRpGj5wV4M — Bakkt (@Bakkt) September 24, 2019
Prior to that, COO Adam White told mainstream media that Bakkt hoped its futures would aid price discovery long-term.