Each fourth dimension Bitcoin (BTC) rallies past the all-important $x,000 mark, analysts seek to attribute the rise to major events occurring beyond the industry. The crypto sector is young, volatile and 1 major proclamation can ship ripples across the market place.

In recent weeks, the market was on a downward tendency, just a number of major occurrences accept lifted the spirits of the industry participants. Bakkt, a company that focuses on driving institutional investment in crypto, has long been hyped as playing an of import role in impacting market valuations.

But Bakkt's product launches have not ever matched up with its reputation. Dorsum in September, the company launched a much-vaunted futures platform. Regardless of hype from the community and analysts alike, the projection saw just 71 BTC (about $700,000 at the time), paltry figures for a project that was touted equally a favorite to draw in serious institutional investment. Since the muted launch of the futures platform, volumes have grown, with ii notable spikes during the final week.

Bull in the China shop

Chinese President Xi Jinping's call for blockchain innovation to exist accelerated in the country has seemingly zapped a languishing market dorsum into action. Bitcoin immediately shot upward to over $x,500 and many altcoins rode the wave firmly back into the green.

Many crypto platforms experienced a boost in volume, and Bakkt was no different. According to data from the Twitter-based monitoring resources Bakkt Volume Bot, Bakkt traded 1,183 Bitcoin ($xi million) futures on Friday.

Since the launch of the futures platform, volumes have mostly been well below $1 million a day. The massive spike in trading was a 257% increase on the previous jump, a record that had only recently been set at 441 BTC futures contracts ($4.8 meg) on Oct. 23. At press time, the total volume is over 616 traded contracts, downwardly 48% on the previous day of trading:

Options

As the volumes on Bakkt'south futures platform abound, the house announced on Oct. 24 that it would launch the get-go regulated options contracts for Bitcoin on Dec. 9. In a press release, Bakkt announced the options contracts would comprise of capital efficiency, cash or physical settlement, depression fees and European-style options.

The business firm also said an in-built messaging service would allow traders to communicate while carrying out block trades, options and analytics. Although the options service will launch fee-free, Bakkt will brainstorm charging $1.25 per contract from Jan 2022. Omar Bham, a content creator and frequent commentator on developments across the industry, explained to Cointelegraph why options are considered a fairly prophylactic bet for investors in comparing to futures:

"They allow speculators to have the 'choice,' but not obligation to finalize an expected curt or long position (call/put). Futures payout gains/losses daily, and can hurt of certain positions are held. Options really only hurt traders via whatsoever they paid for the contract premium (price of opening the contract). Options will attract a whole other mature class of speculators to BAKKT, which could bulldoze much more volume to the platform."

Bham told Cointelegraph that Bakkt'due south options service could farther increase institutional investment in cryptocurrency, "Every bit BAKKT caters to institutional players with big uppercase, increased book from options should beget even more book, as the platforms credibility grows." He went on to add that considering Bakkt requires BTC for settlements, it could drive the demand for crypto.

While many analysts were initially disappointed by Bakkt's early BTC futures volumes, Bham outlined his view to Cointelegraph that both platforms volition grow organically over fourth dimension:

"BAKKT will continue to become an institutional household proper name, due to their association with ICE. As volumes abound, this will expedite even faster future growth."

Prominent crypto analyst on Twitter "Dave the Moving ridge" also told Cointelegraph that Bakkt's options launch would funnel more than institutional money into crypto markets. The analyst explained that the boost in liquidity could reduce volatility, leading to an eventual rise in prices.

Joseph Edwards, head of research for Enigma Securities, an institutional and corporate-facing over-the-counter crypto firm, told Cointelegraph that regulated Bitcoin options will benefit the industry long term:

"In the short term, while we're optimistic and we see greater and quicker utility than was the example for the monthly futures release, we doubtable that the markets nevertheless have September'due south lesson in memory and that it will exist unlikely to move the needle either way."

While Edwards takes a dim view of the service that Bakkt is currently offering, he admitted that the discrepancy in volumes since the platform's launch could come down to low usage from day traders, adding that, "What Bakkt currently offers in terms of its futures production does not provide game-changing utility."

For Edwards, although the ripples from the Chinese government's shift on blockchain might have had an firsthand event, it could exist unwise to assume that institutional investment will be similarly impacted:

"We are taking a wait-and-see arroyo hither, and would circumspection confronting assuming too much too quickly. The real implications for development are more likely going to exist felt in the 1–3 year timespan than right away; nosotros see it as adequately neutral for institutional interest in the curt term."

Bakkt pairs up with Starbucks

Although most of Bakkt'south commercial services take targeted institutional investment, the firm announced its archway into the mobile payments sector with a new app-based project. Building on the momentum of the record volumes witnessed in its Bitcoin futures platform, the company appear in an Oct. 28 blog mail that information technology would launch an app to assist customers "unlock the value of digital assets."

Sparse on substance just big on ambition, the announcement revealed that the coffee behemoth Starbucks would accept digital payments in its stores. Starbucks' vice president of partnerships and payments, Maria Smith, said:

"Starbucks will play a pivotal part in developing applied, trusted and regulated applications for consumers to convert their digital assets into US dollars for use at Starbucks."

It remains unclear exactly how Bakkt will substitution digital avails into USD at points-of-auction. Smith indicated that the system for Starbucks Rewards, which has around 15 million members, could serve as a template for the payments scheme. Mike Novogratz, head of cryptocurrency merchant banking company Digital Milky way, tweeted his view that the venture from Bakkt and Starbucks is a sign that crypto acceptance is just around the corner:

"Follow this infinite. I.e., this is a large deal. Crypto acceptance is coming. Bakkt to launch consumer app in the showtime half of 2022; will test product with Starbucks."

Joe Weisenthal, editor of Bloomberg Business organisation and prominent finance commentator, criticized Novogratz's tweet, commenting that java tin can already be bought with a wide range of payment systems and that the introduction of a crypto option was unlikely to change anything, proverb: "I disagree. Information technology is incredibly like shooting fish in a barrel to purchase coffee these days with a range of payment systems, and I can't fathom how or why a crypto-based arrangement will ameliorate anything."