Key Takeaways
Kraken, a cryptocurrency exchange based in San Francisco, has announced the launch of Kraken Institutional.
This new digital currency suite is tailored to meet the needs of high-net worth firms and institutional investors, offering a range of specialized services and features.
Kraken Institutional is led by Tim Ogilvie, the global head of Kraken’s business division. The new platform aims to offer robust liquidity, yield opportunities, and high-speed trading for digital assets.
Targeted at a broad spectrum of institutional clients including investment funds, asset managers, and financial advisors, Kraken Institutional became operational on February 27.
Kraken’s pivot towards institutional clients takes place during a surge in interest in cryptocurrency.
The successful introduction and widespread acceptance of several spot Bitcoin ETFs within the United States underscores this interest.
As Kraken Institutional gears up to enter this competitive arena, it sets its sights on becoming a contender to well-established services such as Anchorage Digital, Coinbase Custody , and Fidelity Digital Assets.
Since their market introduction on January 11, 2024, spot Bitcoin ETFs have collectively amassed more than 300,000 BTC, secured by a range of custodial services. Coinbase’s institutional sector stands as the custodian for the majority, overseeing seven out of the ten spot Bitcoin ETFs, including Grayscale’s GBTC.
Fidelity independently manages its ETF funds, while Vaneck partners with Gemini for its custody needs. Valkyrie, on the other hand, has recently chosen Bitgo as the custodian for its Bitcoin assets. This move demonstrates the diverse trust and security preferences within the burgeoning ETF market.