Bitcoin Deposited in Bakkt Warehouse Protected by $125M Insurance
|All Bitcoin deposited at the Bakkt Warehouse is protected by a $125 million insurance policy, the company announced Sept. 9. Bakkt started accepting deposits and withdrawals Sept. 6, ahead of the proposed launch of its futures products on Sept. 23.
Everything running smoothly, and now with added protection
It took Bakkt a lot of time and effort to gain regulatory certification for its upcoming daily and monthly physically-delivered bitcoin futures products. However, since approval was given things has been full-speed ahead.
Bakkt revealed a product launch date of Sept. 23, and announced that deposits in its freshly-certified custodial warehousing solution would begin on Sept. 6. Sure enough, this happened as planned.
News of the insurance policy covering client deposits, removes yet another concern for the institutional investors that Bakkt hopes to attract.
All systems prepared for launch
If the launch is successful on Sept. 23, it will be the first bitcoin futures platform offering a physically-delivered product, which means institutional investors will be trading with actual Bitcoin.
Existing futures products from the Chicago Mercantile Exchange are cash-settled, whereas Bakkt clients will receive payment in Bitcoin once the futures contract expires.
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