How will it all work?
- Futures are set to begin trading 23rd September and actual Bitcoin can be acquired by going long in the one-day or 30-day contract and holding to delivery.
- Custody of the coins will be handled by Bakkt Trust Co., which received approval from the New York State Department of Financial Services last month to hold customer tokens.
- The warehouse will then move Bitcoins from short positions to long positions at expiration, resulting in actual delivery of Bitcoin.
- The warehouse has opened early to allow customers to move Bitcoin in and out of their accounts to become comfortable with the process prior to Sept. 23.
- According to a Bloomberg report It’s rare in the futures world for a company to act as exchange, clearinghouse and settlement authority; this last part delayed ICE’s plans for months as it sought the NYDFS approval to become a trust.
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