Bakkt Predicts a Surge in Institutional Investor Participation in the Crypto Trading Market
Crypto custody firm Bakkt expects a significant increase in the involvement of institutional investors in the cryptocurrency trading market.
The driving force behind this mainstream adoption, according to Bakkt, is the recent approval of Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC).
The firm made the prediction on Wednesday when announcing its latest quarterly results, according to a report from PYMNTS.
In the first quarter ending on March 31, Bakkt witnessed a remarkable 324% surge in crypto trading volume compared to the previous quarter, primarily fueled by robust client trading activity.
The positive trend indicates a growing demand environment, with increased industry activity, higher coin prices, and overall elevated retail trading volume, as stated by Andy Main, President and CEO of Bakkt, during the company’s quarterly earnings call.
The existing crypto trading market was primarily tailored for retail investors, utilizing a central limit order book trading structure.
$BKKT Boom‼️
Bakkt Reports First Quarter 2024 Results
$854.6 million total revenues including gross crypto revenues and net loyalty revenues
Strong client crypto trading activity with notional traded volume up 324% quarter-over-quarter
https://t.co/qZYisqKNC4
— SHIB Bezos (@BezosCrypto) May 15, 2024
However, institutional investors seeking to offer Bitcoin ETFs have found that this structure fails to meet their large-scale requirements.
Recognizing this need, Bakkt plans to seize the opportunity by developing BakktX, an electronic communication network (ECN) designed as a purpose-built crypto trading venue for institutions.
BakktX aims to provide high performance, low latency, and cost-effective solutions.
The proposed
