Bitcoin deposited to Bakkt Warehouse is protected by a $125 million insurance policy, according to a tweet from the futures provider.
Last week, Bakkt confirmed that the warehouse, which will be a custodian to Bitcoin assets trading on the upcoming futures platform, was officially open.
“It 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,” the company wrote on Twitter.
Bakkt futures will officially go live on September 23 on Intercontinental Exchange (ICE) futures.
The difference between Bakkt’s offering and the CME and CBOE’s platform is that all trades will be settled in 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.
Coin Rivet reported on the increased influx of institutional investment on August 20. The report reveals that Grayscale holds $2.7 billion in cryptocurrency assets under management, while Fidelity launched its own digital asset investment platform earlier this year.
Bakkt futures will allow institutional traders and investors to access Bitcoin in a regulated environment, offering storage, futures, and daily settled Bitcoin contracts.