Bakkt protects Bitcoin deposits by 125 million USD insurance

Bitcoin, stored by customers in the Bakkt Warehouse, according to a Tweet by the company from the 09. September 2019 protected by insurance in the amount of $ 125 million. The Community responded mixed to the announcement.

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Bakkt Warehouse since 06. September

The company Bakkt is on 23. September Bitcoin Futures contracts with physical delivery on the market. This Bakkt also assumes the custody of the traded Bitcoin. In the course of the introduction, customers can already since 06. September Bitcoin in the Bakkt Warehouse Deposit and profit at the same time of a Deposit guarantee in the amount of $ 125 million, as the company announced a few hours ago.

Community mixed on the announcement

Bakkt will offer as the first company in the trading of physically delivered Bitcoin-Futures contracts (Bakkt Daily and Monthly Futures contracts) in the United States. Actually good news for Bitcoin, you might think, as many experts assume, this step could promote the Bitcoin price to new heights. However, critical voices are heard. So @ArminVanBitcoin writes under the notice of Bakkt:

“Bitcoin is not designed for storage in a warehouse. So the whole point of decentralisation is frustrated. Your insurance policy means as little as the insurance of “our” money in a Bank account.”

Others believe the offer of Bakkt will contribute to better price discovery and liquidity, since contracts, unlike other futures exchanges, to be settled in Bitcoin instead of cash settlement:

“As a reminder, the Hype is full of substance.
Unlike other futures exchanges, this is handled in Bitcoin. Actual Bitcoin will be paid out, not only is the Fiat Equivalent to the price of Bitcoin.
The result is a better price discovery and liquidity for Bitcoin is.“ believes @rhythm traders.

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