Bitcoin on the rise; Gemini obtains insurance for its digital assets

Story by: Aaron Hankin

Cryptocurrency prices drifted higher Thursday, attempting to regain Wednesday’s losses that took bitcoin, the world’s largest digital currency, to a 10-day low toward $6,400.

A single bitcoin BTCUSD, +1.77%  was changing hands at $6,541.79, up 1.5% since Wednesday at 5 p.m. Eastern Time on the Kraken exchange.

Late Wednesday, Gemini Trust Company, the digital asset exchange co-founded by Cameron and Tyler Winklevoss, said it had obtained insurance for its digital assets. “Gemini was approved for coverage after successfully demonstrating to underwriters that the company is a leading, best-in-class exchange and custodian,” a news release said.

Anthony Pompliano, the founder and partner at Morgan Creek Digital, said that while it may not be the most rousing news, it’s a big step forward for the maturation of digital currencies. “While insurance is unsexy, it is a critical element to convincing more traditional investors to participate in the crypto markets,” he wrote.

“The experience, products, and protections need to look as similar to the legacy financial system as possible. This familiarity creates trust in the short term for an asset class that is regularly subjected to negative headlines and general uncertainty.”

Bitcoin has dragged altcoins, the group of coins alternative to bitcoin, higher Thursday. Ether, ETHUSD, +2.62% the second-largest cryptocurrency, was up 2.3% at $221.68, Bitcoin Cash BCHUSD, +0.68%  has climbed 0.6% to $515.40, Litecoin LTCUSD, +2.46%  was up 2.4% at $58.25 and a single XRP coinXRPUSD, +2.84% the currency of the Ripple protocol, was trading at 53 cents, up 2.3%.

In futures trading, the Cboe Global Markets October contract XBTV8, +1.91%was trading at $6,535, up 1.7% and the comparable CME Group October contractBTCV8, +1.95%  was trading 1.6% higher at $6,530.

Original story by: https://tinyurl.com/ycnfqrqq

by