2024

United

Bitcoin

when

Crypto exchange Kraken has launched a new division to offer dedicated services to institutions as it angles for a piece of the spot Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) exchange-traded fund (ETF) pie.&nbsp;
Kraken <a href="https://www.businesswire.com/news/home/20240227115839/en/Kraken-Launches-New-Brand-to-Offer-Dedicated-Crypto-Solutions-for-Institutions#:~:text=Kraken%20Institutional%20will%20be%20the,trading%2C%20OTC%20trading%20and%20staking" target="_blank" rel="noopener nofollow">announced</a> its new institutional brand on Feb. 27 that folds in its existing institutional offerings of spot and over-the-counter trading along with <a href="https://cointelegraph.com/news/kraken-reaches-30m-settlement-with-sec-over-staking">crypto staking</a>&nbsp;— for those outside the United States — and is aiming it toward asset managers, hedge funds and high-net-worth individuals.
Staked co-founder Tim Ogilvie, who joined Kraken <a href="https://cointelegraph.com/news/crypto-exchange-kraken-acquires-non-custodial-staking-platform-staked">when it acquired</a> his firm in December 2021, will head Kraken Institutional and said in a statement that “institutional adoption of crypto is growing rapidly.”
“The recent ETF approval has spurred broader institutional demand,” Ogilvie added.
The new nine <a href="https://cointelegraph.com/learn/bitcoin-etfs-a-beginners-guide-to-exchange-traded-funds">Bitcoin ETFs</a> have seen an aggregate inflow of $6 billion since their launch in January — an average daily inflow of $196 million; they also <a href="https://cointelegraph.com/news/new-nine-spot-bitcoin-etf-volumes-reach-new-high">recently hit a new daily volume record</a> of $2.4 billion.
Grayscale’s ETF has seen billions in outflows, but other funds have offset the selling with their inflows, with BlackRock’s and Fidelity’s ETFs leading the pack.
<a href="https://cointelegraph.com/news/spot-bitcoin-etf-storage-btc-vs-exchange">Coinbase is the custodian</a> for eight of the 10 newly launched Bitcoin ETFs, leading some analysts to predict <a href="https://cointelegraph.com/news/coinbase-earnings-indicate-strong-year-ahead-though-challenges-abound">strong earnings for the firm</a> in the year ahead. Kraken could now also be angling for a slice of that action. 
In a <a href="https://blog.kraken.com/news/introducing-kraken-institutional" target="_blank" rel="noopener nofollow">blog post</a> on Feb. 27, Ogilvie wrote that Kraken Institutional will launch a “qualified custody” service backed by Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution.
<blockquote class="twitter-tweet">
 Kraken Institutional is open for business! Excited to help our partners grow their crypto businesses! <a href="https://t.co/eV5zU3nR5v">https://t.co/eV5zU3nR5v</a>— Tim Ogilvie (@Tim_Ogilvie) <a href="https://twitter.com/Tim_Ogilvie/status/1762490752578297957?ref_src=twsrc%5Etfw">February 27, 2024</a>
</blockquote> 
Related: <a href="https://cointelegraph.com/news/bitcoin-etf-massive-demand-institutions">Bitcoin ETF to trigger massive demand from institutions, EY says</a>
Kraken Institutional competes directly with Coinbase Institutional and <a href="https://cointelegraph.com/news/coinbase-launches-crypto-loans-for-institutional-investors">Coinbase Prime</a>, which launched in 2021 to cater for institutional investors.
It also goes up against Binance Institutional, which launched in mid-2022 and offers&nbsp;<a href="https://cointelegraph.com/news/binance-to-let-institutions-store-crypto-with-cold-custody">customized solutions</a> for institutional users such as asset managers, brokers, hedge funds, family offices, liquidity providers and proprietary trading firms.
Magazine: <a href="https://cointelegraph.com/magazine/crypto-inevitable-all-in-meet-vance-spencer/">‘Crypto is inevitable’ so we went ‘all in’ — Meet Vance Spencer, permabull</a>

Kraken launches institutional arm aiming to cash in on Bitcoin ETFs

Cointelegraph

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