Bitcoin Plunges $600 As Bakkt Announces Regulated Warehousing

Bakkt Warehouse, the qualified custodian of the Bakkt trading platform, now accepts Bitcoin deposits and withdrawals.

As the company announced on Twitter on September 6, Bakkt Warehouse was officially launched according to plans unveiled last month.

The launch of Bakkt Warehouse comes as the company prepares to launch its platform for daily and monthly Bitcoin futures in the United States on September 23. The platform will enable two types of Bitcoin futures physically delivered with regulated end-to-end and custodial markets.

How Would Bakkt’s Proposal Work?

According to a Bloomberg report, Bakkt will be the first platform to offer physically delivered Bitcoin futures. Unlike the cash-settled Bitcoin futures provided by the CME and the CBOE, Bakkt’s physically-settled futures will allow customers to receive payment in Bitcoin once the contracts expire.

Once started, transactions will be conducted on the Intercontinental Exchange (ICE) —a futures platform managed by Bakkt’s parent company. Then, clearing will be settled through ICE Clear.

Meanwhile, Bakkt Trust Company will operate the escrow. The company reportedly received a letter from the New York State Department of Financial Services to hold customers’ crypto funds in August 2019. In turn, Bakkt Warehouse will move Bitcoin from short positions to long positions.

BTC Dumps as the market prepares for Bakkt Warehouse to Launch

The move, of course, has put the market in expectation. While many hope that such initiatives will stimulate trading resulting in higher prices, others fear that the entry of capital-intensive players will result in more significant manipulation of market prices.

Bakkt’s announcement came a few hours before a mysterious transaction of more than $1 trillion appeared on the Bitcoin Blockchain. Although no one has claimed ownership of this portfolio, it may belong to Bakkt or perhaps VanEck, which will begin trading with a limited institutional ETF, fully backed by bitcoin under the SEC’s Rule 144A,

After this massive movement of tokens, Bitcoin suddenly fell from 10900 to a minimum of 10300. 

It is unknown whether both events are related or not, but what we can take for granted is that this month looks quite exciting, especially for fundamental analysts as both decisions could have major consequences for the crypto markets.



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Source: Crypto Potato