Bakkt and CME launch new products to help Bitcoin price rebound

Two key entities that influence crypto market dynamics announced new Bitcoin products on the same day. The Chicago Mercantile Exchange (CME) and Bakkt appear to be pursuing a common goal of growing their cryptocurrency-based services to attract new investors.

CME Group, a financial derivatives platform, announced that it will offer micro bitcoin futures contracts. The new product, which will be launched on May 5 and is subject to regulatory review, will be worth one-tenth of a bitcoin.

According to an official announcement, the micro futures contracts, backed by fiat currencies, are intended to provide a new tool to “hedge against Bitcoin prices and their volatility in the spot market.”

The statement said that this new type of futures contract was requested by a large part of CME's customers. Morgan Stanley also revealed a similar situation when announcing the launch of three Bitcoin funds: this was due to huge demand from customers.

Its derivatives platform said liquidity levels for its products have been growing steadily since its launch in 2017. Tim McCourt, global head of equity index and alternative investment products at CME Group, said it is institutional investors that have shown the most interest in the asset class.

Meanwhile, Bakkt Holdings, a subsidiary of the Intercontinental Exchange (ICE), has launched a new Bitcoin wallet in a “game-changing” move that will allow users to hold their funds in multiple cryptocurrencies under one platform.

The product will allow users to convert funds into fiat currencies, and it will reward users in the form of gift cards, loyalty points, etc. Users can download the app from the Google Play Store and the App Store.

“From gift cards to loyalty points to Bitcoin, the average consumer owns a vast array of digital assets, but they lack the tools to fully track and leverage their value,” said Gavin Michael, CEO of Bakkt. “We’re excited to bring Bakkt’s application to the public as part of our plan to make digital assets accessible to everyone.”

PayPal has made a similar announcement. The payment processor will allow its U.S. users to use cryptocurrency funds in a new payment service. The company is expected to make the service accessible to all its users worldwide in the coming months.

Bitcoin’s performance following recent announcements

According to Bitpush data, the price of Bitcoin reacted positively, showing a 1.5% increase in the last day's chart. After two consecutive weeks of sideways adjustment, the cryptocurrency is trading at $58,880, with an increase of 8.3% on the 7-day chart.

Glassnode data shows that over 9.51% of the Bitcoin supply has not been moved in the past six months. Once a Bitcoin has been HODLed for more than 5-6 months, it becomes increasingly likely to be dormant, and once it exceeds 155 days, it is reclassified as a long-term holding (LTH) Bitcoin. Glassnode noted that these Bitcoins were acquired during last year's bull run.

Santiment recorded a rise in funding rates on the BitMex platform, which the company said indicated an increase in investor “greed.”