Bakkt futures Warehouse with $125 million insurance policy goes live after years of anticipation
Bakkt had kept the crypto community’s curiosity high as it prepared to introduce its Bitcoin futures contracts. To the community’s delight, the company tweeted from its official Twitter account,
“The Bakkt Warehouse is active for futures. Bitcoin deposited at our Warehouse is protected by a $125 million insurance policy.”
As per Bakkt’s previous announcement, the entire crypto-centered business is “regulated by the New York State Department of Financial Services (NYDFS) as a Limited Purpose Trust Company, providing customers with a Qualified Custodian of bitcoin.”
One of the main features of this offering is that unlike other futures exchanges, Bakkt will be settling all balances in Bitcoin, and not just the fiat equivalent to the price of Bitcoin. As a result, this will enable investors to experience better price discovery and liquidity for Bitcoin.
Moreover, Bakkt also allows users to make Bitcoin deposits and withdrawals and will launch the Bakkt Daily and Monthly Futures contracts launch on 23rd September. Soon after its launch, Bakkt will create the first fully regulated marketplace specifically designed to meet the needs of institutional firms and their clients. The announcement was summed up by the company’s COO, who said,
“It represents a milestone as we prepare for the launch of the Bakkt Bitcoin Daily and Monthly Futures contracts on ICE Futures U.S. Trusted infrastructure, particularly the regulated and secure custody of digital assets, is at the core of everything we do at Bakkt.”