Record-high Bakkt Bitcoin delivery exposes institutional frenzy for BTC

Data from Arcane Research shows Bakkt Bitcoin exchange saw another record-high month from Sept. 20 to Oct. 20.

This follows a noticeable rise in institutional demand for Bitcoin from public companies in recent months.

When the volume of the Bakkt Bitcoin futures market increases, which physically settles Bitcoin contracts, it typically demonstrates growth in institutional appetite for digital assets.

CME, LMAX Digital, and Bakkt volumes show the institutional Bitcoin market is growing rapidly.

According to the analysts at Arcane Research, 400 BTC contracts are set to expire in October at Bakkt.

Bakkt's volume and open interest are important in gauging institutional activity because it is one of the three widely utilized platforms by institutions alongside LMAX Digital and CME. As such, Arcane Research said that the substantial increase in futures contract deliveries on Bakkt signifies rising institutional demand.

"Another ATH BTC delivery on Bakkt this month. Over 400 BTC futures contracts were held to expiry in October, an increase of 14% from September. With another record-breaking month on Bakkt, the demand for bitcoin is increasing among institutional investors."

Since LMAX Digital primarily facilitates trades for institutions, the exchange surpassing Coinbase depicts the current institutional landscape of Bitcoin.

Industry executives and high-net-worth investors in the cryptocurrency market expect the trend of rising institutional appetite for Bitcoin to continue.

Tyler Winklevoss, the billionaire Bitcoin investor and the co-founder of Gemini, said Bitcoin is steadily evolving into a corporate treasury asset.