Kraken has unveiled a new division that will help institutional clients who want to gain a foothold in the Bitcoin ETF market.
In a recent blog post, the exchange announced that Kraken Institutional ‘s existing institutional offerings include OTC and spot trading, as well as cryptocurrency staking services for clients outside the United States. The division mainly serves asset managers, hedge funds and high net worth individuals.
Tim Ogilvie, co-founder of Staked, which Kraken acquired in December 2021, will head the Kraken Institutional division . In a statement, Ogilvie highlighted the rapid growth in institutional adoption of cryptocurrencies and said that the recent approval of Bitcoin ETFs has strongly contributed to this.
Fira made the decision to launch the new division as institutional investors become more interested in Bitcoin ETFs. In fact, amid the rise of the cryptocurrency, Bitcoin ETFs, which were launched in January, have attracted billions of dollars.
The main players in the market are BlackRock and Fidelity, which are amassing around $6 billion and $4 billion respectively, followed by Ark Invest and Bitwise. At the beginning of the week, the daily trading volume of Bitcoin ETFs reached nearly $2 billion, the highest level since the first day of trading on January 11.
Last week, Bitcoin ET Fs saw a significant increase of about $2.3 billion – almost double the previous week’s $1.2 billion.
The increase in demand for U.S. stocks from investors around the world has caused a significant outflow of moneyfrom gold-based ETFs. As of February 14, the fourteen leading gold ETFs are forecasting an outflow of $2.4 billion in 2024.
