What is Bakkt warehouse Bitcoin deposit insurance? This company will launch its Bitcoin futures platform on September 23.
September 10, 2019, | AtoZ Markets - Crypto platform Bakkt on September 9 announced in a tweet that the Bitcoin deposits on its Warehouse platform are protected by a $125 million insurance cover.
The company, however, did not give further details like the name of the insurance company.
Bakkt Bitcoin custody service is different
Bakkt’s offering is quite different from that of the CME and CBOE’s platform in that all trades it will become the first Bitcoin futures trading services with physical delivery. This means that once the futures contract expires, customers will receive actual Bitcoin rather than cash. As a result, Bakkt needs to hold the underlying asset, which is a huge step for the asset class that has seen a spike in institutional investment throughout 2019.
Furthermore, Bakkt futures will allow institutional traders and investors to access Bitcoin in a regulated environment, offering storage, futures, and daily settled Bitcoin contracts.
All systems prepared for launch
Bakkt started accepting Bitcoin deposits on its Warehouse platform on September 6, prior to the launch of its futures platform on September 23 on Intercontinental Exchange (ICE) futures.
The ICE-owned company is going to be the first physically delivered Bitcoin futures in the United States. Though the Commodity Futures Trading Commission (CFTC) has given the company the green light, its launch was delayed several times due to regulatory holdups.
The company had already launched a test version of its upcoming platform in June to perform “user acceptance testing.”
Will Bitcoin price rally?
The Bakkt warehouse Bitcoin deposit insurance news hasn’t boosted Bitcoin’s price as of late Monday. In fact, the market cap has declined by 1.12% in the last 24 hours. At the time of writing, the flagship cryptocurrency is trading at around $10,234.
That said, with the introduction of deposits on Bakkt Warehouse, $1 billion worth Bitcoins were transferred to one single Bitcoin wallet address last Friday. Without any known ties with any exchange, many are speculating it to be Bakkt’s deposits. In the meantime, nothing about the transactions is yet to be confirmed.
Do you think the Bakkt launch will move Bitcoin’s price by the end of September? Let us know in the comments section below.