Two key entities that affect the crypto market dynamics have announced the launch of new Bitcoin products on the same day. The Chicago Mercantile Exchange (CME) and Bakkt appear to be pursuing a common goal, the evolution of their crypto-based services to attract new investors.
The CME financial derivatives platform announced that it will offer micro-Bitcoin futures contracts. This new product will be rolled out on May 5, pending regulatory review, and will be worth one-tenth of a Bitcoin.
Backed with fiat money, the micro futures contracts are intended to give a new “tool to hedge against the price of Bitcoin” and its fluctuations in the spot market, according to an official statement.
The statement claims that this new type of futures contract was demanded by a large portion of the CME’s clients. Something similar was revealed by Morgan Stanley when it announced the launch of 3 funds to give access to Bitcoin: a massive demand from its customers.
The derivatives platform stated that its products have seen steady growth in the level of liquidity since its launch in 2017. Institutions represent the sector that has shown the most interest in this asset class, according to Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products.
In parallel, Intercontinental Exchange (ICE) subsidiary Bakkt Holdings has launched a new Bitcoin wallet to “change the game.” Called Bakkt App it will allow its users to hold their funds in multiple cryptocurrencies under one platform.
The product will allow funds to be converted into fiat and will give users rewards in gift cards, loyalty points, and others. Users can download the app from the Google Play Store and the App Store. Bakkt CEO Gavin Michael said:
The average consumer holds a wealth of digital assets – from gift cards to loyalty points to bitcoin – but lacks the tools to adequately track and utilize their value. We’re thrilled to bring the Bakkt App to the public as a step along our journey to expand digital asset access to all.
PayPal made a similar announcement. The payment processor will allow its U.S. customers to use their cryptocurrency funds in a new checkout service. It is expected that in the coming months, the company will allow all its users globally to have access to this service.
Today, we are announcing the launch of Checkout with Crypto, a new way for PayPal customers to check out with #Cryptocurrency to pay for select online purchases. https://t.co/RbOe8aLtlz pic.twitter.com/zGWHgbwVlU
— PayPal (@PayPal) March 30, 2021
Bitcoin’s performance after recent announcements
Bitcoin price has reacted positively and shows gains of 1.5% on the last day’s chart. Trading at $58, 880, the cryptocurrency records gains of 8.3% on the 7-day chart, after two weeks moving sideways.
Data from the firm Glassnode indicates that over the past 6 months, more than 9.51% of the Bitcoin supply has “matured” to the 6 million age range. In other words, these coins have gone that period without being spent. Glassnode indicates that these coins were acquired during last year’s bull market.
Firm Santiment records an increase in the funding rate for BitMex. According to the firm, this indicates an increase in investors’ “greed”.
🤑 When #Bitmex funding rates get high, it’s one of the best public examples of crowd greed. Vice versa when funding rates go negative, indicating fear. Read about our new model that shows when local tops & bottoms are close with this very accurate metric! https://t.co/6fvirfq4ZJ pic.twitter.com/JDWmI9EmZF
— Santiment (@santimentfeed) March 29, 2021
This post was originally published on www.newsbtc.com