Kraken Institutional launches first managed crypto yield strategy with Bitwise

Kraken Institutional, the dedicated division serving institutional clients of the global cryptocurrency exchange Kraken, has announced a landmark partnership with Bitwise Asset Management to launch its first managed crypto yield strategy. This strategic collaboration aims to bridge the gap between traditional institutional finance and the growing opportunities for passive income generation within the digital asset space.

The new product, tailored specifically for institutional investors, is designed to simplify and secure access to crypto-native yields, which typically involve complex operational hurdles such as staking, decentralized finance (DeFi) interactions, and structured product management. By combining Kraken’s robust infrastructure, deep liquidity, and secure custody solutions with Bitwise’s expertise in regulated asset management, the firms are offering a comprehensive solution that addresses institutional concerns regarding compliance, security, and operational complexity.

The managed strategy will allow institutions to deploy their digital assets into yield-generating activities under the oversight of professional managers, removing the necessity for clients to navigate the technical intricacies of underlying protocols. This initiative caters to a growing demand from endowments, family offices, and wealth managers who are seeking sophisticated, yet simple, ways to generate returns on their crypto holdings beyond simple spot appreciation.

Industry analysts view this partnership as a significant step in the maturation of the institutional crypto market. It signifies a move beyond basic custodial services toward advanced, actively managed investment products that utilize the native income-generating capabilities of digital assets while adhering to high standards of operational excellence and regulatory rigor.

Source: Kraken Institutional launches first managed crypto yield strategy with Bitwise