As Bakkt Prepares Bitcoin Futures To Go Live, All BTC Deposits To Be Backed By $125M In Insurance
The company also announced that all the Bitcoin that will be deposited in Bakkt Warehouse will be covered by a $125 million insurance cover. On September 6, Bakkt announced that its clients were free to deposit and withdraw Bitcoin even as the company gears to roll on its futures platform on Sept. 23.
After several months of trying to secure an operating license for the much anticipated daily as well as monthly physical Bitcoin futures platform, the company was finally granted one by New York State Department of Financial Services (NYDFS). Since the certification, the company has been in full swing in preparation for the futures product.
The company had earlier announced that the futures product will be launched on Sept. 23 and also revealed that its custodial warehousing platform will kickstart on Sept. 6. Credit to the company as this took place as planned.
The insurance policy protecting the customers’ deposits will help in eliminating any concerns and fears for institutional clients which are the main targets for the company.
If Bakkt is able to launch its futures product as per the plans, the company will be making history as the first one to provide physically-delivered product. This will allow institutions in the platform to be trading using actual Bitcoin. In other words, compared to other futures platforms, the Bakkt one is poised to be clearing all balances in Bitcoin, and not just the cash that is equal to the prevailing price of Bitcoin. In this regard, this will allow investors to enjoy better price discovery and liquidity for Bitcoin.
The current futures exchanges such as the Chicago Mercantile Exchange (CME) settle the balances using cash.
Cointelegraph reports that the new Bakkt futures product will be backed by the parent company ICE as well as ICE Clear U.S.