Cryptocurrency exchange BitMEX announced plans to reallocate a significant portion of its insurance fund by converting up to $20.6 million of Ethereum (ETH) and $80 million of USDT into US dollars (USD) over the next few weeks.
According to the exchange's statement, onchain fund movements that will include these moves can start today and fund transfers that attract the attention of users can be seen.
BitMEX assured its users that the reallocation will not affect their trading activities, positions, deposit or withdrawal frequencies.
The reallocation involves exchanging Tether (USDT) and ETH balances for dollars and then holding them in custodial accounts with BitMEX's banking partners.
The process is expected to take several weeks. The company had not touched the ETHs in the insurance fund for months, but sales were taking place regularly from the USDT fund.
In addition, the company has approximately 36,700 Bitcoins in its insurance fund, which is a very large amount, and these funds are expected to be unaffected by this latest change. 36,700 BTC corresponds to approximately 900 million dollars at the time of writing this article.
*This is not investment advice.