Bitcoin trading on Bakkt breaks a quarter of a million dollars

Bakkt launched its physically-settled Bitcoin futures today, providing institutional investors with a new way to bet on the expected price of Bitcoin in the near term. And already, the amount of Bitcoin being traded on the exchange has reached a quarter of a million dollars.

Bakkt was launched by The Intercontinental Exchange (ICE), the United States’ exchange group that owns the New York Stock Exchange. By offering physically-settled futures, this means traders make their bets and receive their winnings in Bitcoin—rather than the US dollar equivalent. This is important for Bitcoin traders because it helps to suck up Bitcoin in the market, reducing the available supply and helping to put upwards pressure on the price.

So far, 28 bitcoins have been traded on the exchange, worth $280,000. The first trade was made when Bitcoin was at $10,115. It has since dropped to $9,990.

Shortly after the launch, only 18 bitcoins had been traded. But within a few hours, it had jumped up to 26 bitcoins, and continues to rise.

Meet the people who make a living from airdrops

In blockchain, instead of paying workers with real money, it’s common practice for startups to offer ‘airdrops’, or ‘bounties’ in the project's native token to people looking to make a few dollars for being fans of the project.

Those who can navigate this highly unregulated economy can get rich quick: If a native token soars in value, a few retweets and comments a week could lead to a cashout in the thousands of dollars; a considerable sum for bounty hunters, many of whom live in developing countries, where a day’s wage can be less than $5. Abu Bakkar Siddik, a bounty hunter from Bangladesh, told Decrypt he made enough from the Kick ICO airdrop to buy a house. Decrypt spoke to those who had dedicated themselves to making money out of thin air.

Here are the biggest stories in the cryptoverse:

• 50% of bitcoin subject to wash trading, says study.
• UK police to auction $600k of bitcoin. 
• Bitcoin miner maker expects booming Q3. 
• Major South Korean banks join JP Morgan blockchain.

Congress and the SEC to discuss cryptocurrencies and ICOs on Tuesday

What you need to know

Congress and the Securities and Exchange Commission (SEC) will meet on Tuesday to discuss the current state of regulation surrounding cryptocurrencies, and the status of ICOs.

The SEC’s job is to protect investors and maintain fair markets, overseeing $97 trillion in securities each year. 

Why it's important

In a one-panel hearing, called “Oversight of the Securities and Exchange Commission: Wall Street’s Cop on the Beat,” the Chairman of the SEC, Jay Clayton, will call upon four other commissioners to explain how it’s protecting markets from a host of financial mishaps, among them cryptocurrencies. Specifically, Congress will seek answers concerning the issue over whether cryptocurrencies should be treated as securities or not.

Five bitcoin investing strategies you can use now

Michiel Lescrauwaet, co-founder of bitcoin investment fund Adamant Capital, recently laid out the firm’s investment strategy, and five approaches that can outperform bitcoin, at the Baltic Honeybadger Bitcoin conference.

Adamant calls itself a "bitcoin alpha fund,” meaning that it tries to beat bitcoin’s performance. It also argues that bitcoin should be used as a benchmark for the whole crypto industry, as opposed to frameworks borrowed from traditional finance that are currently used by most crypto asset fund managers.  

Read more here.