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BITCOIN PLUNGES $600 AS BAKKT ANNOUNCES REGULATED WAREHOUSING



Bakkt Warehouse, the qualified custodian of the Bakkt trading platform, now accepts Bitcoin deposits and withdrawals.
Following plans unveiled last month, the company announced today that Bakkt Warehouse was officially launched.
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 Will 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 CME and Cboe, Bakkt’s physically-settled futures will allow customers to receive payment in Bitcoin once the contracts expire.

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

Meanwhile, Bakkt Trust Company will operate the escrow. The company reportedly received a license from the New York State Department of Financial Services to hold customers’ crypto funds last month. 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 mode. While many hope that such initiatives will stimulate trading and result 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 billion appeared on the Bitcoin blockchain. Although no one has claimed ownership of these funds, they 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 coins, Bitcoin’ price suddenly fell from $10,900 to $10,300. It is unknown whether these events are related or not, but what we do know is that this month looks quite exciting, especially for fundamental analysts, as they could have major consequences for the crypto markets.




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