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Kraken Launches Institutional Arm for High-Net Worth Clients

Last Updated February 29, 2024 9:09 AM
Teuta Franjkovic
Last Updated February 29, 2024 9:09 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • Kraken expands its offerings with “Kraken Institutional,” targeting high-net-worth investors and institutions.
  • This launch coincides with a surge in institutional interest in crypto assets.
  • Kraken Institutional aims to compete with established services like Anchorage Digital and Coinbase Custody.

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.

Institutional Service to Meet Demand Among High-Net-Worth Investors

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.

Entering Crypto Custody Market Amidst Soaring Institutional Interest

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.

Newly Launched ETFs Amass Over 300,000 BTC 

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.

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