According to data provided by Arcane Research, the demand for physical delivery of Bakkt's BTC futures contracts has climbed by 44% in March.
In spite of the turbulent situation of both the crypto and traditional markets in general, traders are showing an increasing interest in having their BTC futures contracts physically delivered.
Bakkt's BTC futures contracts, which the ICE-owned platform launched back in September 2019, allow users to receive Bitcoins at the expiration of the contracts, offering this way direct exposure to the asset.
However, it must be noted that despite this increase in the demand for physical delivery for Bitcoin contracts, the volume of traded contracts on the platform as well as open interest has actually declined.
According to Investopedia, a futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange. The buyer of a futures contract is taking on the obligation to buy and receive the underlying asset, in this case Bitcoin, when the futures contract expires. The seller of the futures contract is taking on the obligation to provide and deliver the underlying asset at the expiration date.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.