Skip to main content

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.




Comments

Popular posts from this blog

Bitcoin Hash Rate Hits All-Time High: Here’s How It Works And How It Affects The Price

Bitcoin intelligence, data, and analytics firm Glassnode found the Bitcoin hash rate hit a new all-time high over the weekend, ten days before the Bitcoin halving event. In other words, miners are putting more computational power into maintaining the Bitcoin network. Because miners must venture electricity and capital intensive computer processors to mine Bitcoin, the increase in hash rate is a bullish sign. It means miners are after the Bitcoin rewards they get from maintaining the network. And they’re venturing the resources to go after those rewards. Is The Bitcoin Hash Rate Correlated With The Price? In general, the Bitcoin price and the hash rate are not correlated. The price is what buyers and sellers agree to pay for one Bitcoin, and there are many factors – external and internal – affecting the price. However, there is a relation between the two. While the price goes up, it’s more profitable to mine, which likely to cause more miners to turn on their mining equ...

IN THE NEW DECADE, CRYPTO WILL BECOME ESSENTIAL LIKE EMAIL: SAYS TYLER WINKLEVOSS

It’s the start of a new decade, and industry famous twin Tyler Winklevoss, the co-founder, and CEO of cryptocurrency exchange and custodian company Gemini Trust, has shared his views on what the next ten years hold for crypto. According to Winklevoss, crypto is already becoming more than a niche technology and a form of money, and it will play an essential role in our daily life in the foreseeable future. “Today, crypto is still a niche technology and a form of money. It is not crucial to your everyday life the way email and other web applications are, but our thesis is that this will change — it’s already changing if you look close enough,” Winklevoss wrote. Winklevoss added that the decentralized nature of cryptocurrencies, which empowers individuals, will be the driving force within the new decade. Crypto will not only redesign the internet but will also redesign the financial and monetary systems to protect the rights and dignity of users, he said. The Winklevos...

Qatar Blocks Cryptocurrency Services Throughout The Gulf

As the new year begins, Qatar’s Financial Center, the nation’s regulatory authority, has issued a blanket ban on cryptocurrency-related services in the Gulf nation. The prohibition covers not only cryptocurrencies but “anything of value” that could substitute fiat currencies. Qatar Bans Cryptocurrencies The Qatari Financial Center, which is also the nation’s regulatory authority, has issued a statewide ban on cryptocurrencies and other digital assets that might substitute traditional fiat. Per the report , the authority stated that: “Virtual Asset Services may not be conducted in or from the QFC at this time.” It also reads that this goes for “Anything of value that acts as a substitute for currency, that can be digitally traded or transferred and can be used for payment or investment purposes.” However, it’s also worth noting that the ban doesn’t cover digital forms of securities or other financial instruments that are thoroughly regulated by the Regulatory Authority, ...