The Futures Are Here! Bakkt Warehouse Cleared for Operations

Author: Dylan B
Date: 
September 03, 2019
Read time: 
2 minutes

An ambitious project, the physical futures Bitcoin contract offerings that the crypto trading platform Bakkt announced a year ago has officially been cleared and the qualified custodian of these financial vehicles, Bakkt Warehouse, will be open on September 6th to offer Bitcoin storage for customers. 

An ambitious project, the physical futures Bitcoin contract offerings that the crypto trading platform Bakkt announced a year ago has officially been cleared and the qualified custodian of these financial vehicles, Bakkt Warehouse, will be open on September 6th to offer Bitcoin storage for customers. 

These developments are big news for the crypto community as investors will finally be able to put their money into a product that is fully-regulated and compliant and one that also delivers Bitcoin instead of cash when contracts close.

This is according to a recent announcement released on their Twitter account, which read: 

On Sept 6, our Warehouse will begin offering secure storage of customer bitcoin to prepare for the launch of Bakkt Bitcoin Daily & Monthly Futures when they launch on Sept 23

These contracts will enable physical delivery of bitcoin with end-to-end regulated markets and custody…” 

The post continued by further explaining the purpose of Bakkt Warehouse: 

“The Bakkt Warehouse, which is part of the Bakkt Trust Company, is built using the cyber and physical security protections that support the world’s most actively traded markets, including the NYSE. In addition, the independent governance and compliance requirements of a qualified custodian mean that the Bakkt Warehouse is designed to meet the highest standards of oversight.

Are you New to Cryptocurrency? Get Started Investing Today.

These developments are big news for the crypto community as investors will finally be able to put their money into a product that is fully-regulated and compliant and one that also delivers Bitcoin instead of cash when contracts close, which is the state of other futures contracts such as those at the Chicago Mercantile Exchange. 

This is also major news as the platform had been announced a year earlier but was heavily delayed due to regulatory issues with their product. Now that they have the green light, we will see another major step forward in adoption and implementation in the traditional finance industry. 

For those who are new to the industry, the physically-delivered Bitcoin futures are contracts that are designed to help maximize profitability, prevent losses, and act as a risk management tool. They are contracts upon which you agree to buy or sell Bitcoin at a specific date in the future. If you agree to purchase a certain amount and the price drops by the future date, you earn more Bitcoin that could grow in value in the future. If you purchase a contract to sell in the future and the price rises by the contract’s closing date, you earn on your investment. 

With these new products on the market offering traditional investors a regulated way to engage in the growing digital finance industry, we are excited to see what Bakkt and other ambitious crypto companies have planned in the future.

Posted by Dylan B

Dylan Buckley is a writer based in California. He became interested in cryptocurrency upon discovering it in 2014 and soon started investing as well as writing for a wide variety of clients and crypto-startups in the space. When he is not producing content for individuals and businesses, he is typically working on his own self-development content or making music.

Comments

Add new comment

CLAP

Share

text
Find Great Tools