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Bitget Protection Fund hits USD $441.5 million in August
KAREN JOY BACUDOFinance Editor
Bitget’s Protection Fund reached a high of USD $441.5 million in August and averaged USD $382 million during the month.
Backed by 5,500 bitcoin, the fund remained above Bitget’s original USD $300 million commitment throughout August, according to company figures.
Its lowest level was USD $345.3 million at the start of the month. The value then climbed as bitcoin strengthened in the second half, ending August at about USD $432 million.
Based on Bitget’s daily data, bitcoin traded between USD $62,773 and USD $80,268 during the period. It rose from USD $62,773 at the start of the month to USD $78,553 by the end, a gain of more than 25%.
That increase lifted the US dollar value of the exchange’s bitcoin-denominated reserve, which is intended to protect user assets during extreme market events.
The Protection Fund was established in 2022 as an additional buffer for customers if markets come under stress or other unexpected incidents affect the platform. Bitget publishes the fund’s valuation regularly and says users can track the reserve onchain.
The fund operates alongside Bitget’s Proof of Reserves system, which the exchange said maintains reserves above user assets across major holdings. In practice, this provides two separate safeguards: a published asset-backing measure and a dedicated reserve pool.
Protection funds and proof-of-reserve disclosures have become more prominent across the crypto sector as trading venues face continued scrutiny over asset custody, liquidity and transparency. Large swings in cryptocurrency prices can quickly change the value of reserves held in digital assets, even when the number of tokens remains unchanged.
Bitget linked the August increase to bitcoin’s rally in the latter part of the month. Because the reserve is held in bitcoin, changes in the token’s market price directly affected the fund’s dollar valuation.
The company also framed the latest figures against a broader expansion of its trading offering beyond cryptocurrencies. Bitget has been building what it calls a universal exchange model that includes tokenised stocks, commodities and other financial markets on one platform.
That broader scope increases the importance of internal risk controls and visible reserves as users trade across different asset classes on a single venue. Exchanges offering a wider range of products can face more complex operational and market risks, particularly during periods of volatility.
Gracy Chen, Chief Executive Officer at Bitget, commented on the role of the reserve during stronger market conditions.
“Strong markets don’t reduce the need for strong safeguards,” said Gracy Chen, Chief Executive Officer at Bitget. “As our ecosystem expands across asset classes, user protection and transparency have to scale with it. Maintaining substantial onchain reserves and making their value publicly visible is part of building that trust into the platform.”
Bitget says it serves more than 125 million users and offers access to crypto tokens and tokenised traditional financial products. According to the company, it operates across 150 regions.
The August figures underline how closely the reported value of such reserves can track bitcoin’s market moves. With 5,500 BTC held in the fund, the reserve’s dollar value rose sharply as the token moved above USD $80,000 before easing back toward month-end.
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Source: cfotech.asia