Kraken Institutional’s new model attempts to consolidate that sprawl. The crypto exchange’s institutional arm has launched its first professionally managed yield strategy, marking a strategic shift toward curated investment solutions delivered inside a regulated, institutional‑grade framework. The inaugural offering—the Bitwise Custom Yield Strategy—is managed by Bitwise Asset Management as an external strategy manager and executed entirely within Kraken’s qualified custody, execution and risk framework. The Bitwise team, led by Bitwise’s Head of Derivatives, Gordon Grant, is responsible for day‑to‑day portfolio management, while Kraken provides the underlying infrastructure, governance and ongoing oversight.

This initial availability represents an important first step in Kraken Institutional’s longer‑term vision to provide clients with access to a broad and evolving range of professionally‑managed strategies through a single, institutional‑grade operational framework. Over time, strategies from specialist external managers, alongside select Kraken‑managed offerings, will be made available to institutional clients.

“Kraken is expanding beyond custody and execution to provide clients with access to professionally managed opportunities through a single, trusted venue,” said Gurpreet Oberoi, Head of Kraken Institutional. “This offering represents the first of multiple strategies as we build the infrastructure institutions need to access diverse crypto opportunities with confidence.”

Today, many institutional crypto holders earn little to no yield on assets such as Bitcoin. While strategies do exist, access remains fragmented. Kraken Institutional is uniquely positioned to curate and deliver these offerings through its combination of qualified custody, deep and reliable liquidity, superior execution, round‑the‑clock client support and secure, regulated infrastructure.

All strategies made available through Kraken Institutional undergo a structured internal review and approval process and remain subject to ongoing oversight in line with Kraken’s operating standards.

The Bitwise Custom Yield Strategy is the first offering launched under this framework, with additional strategies and fund managers expected to follow. This initial strategy comes with minimal lock‑up periods to support flexible liquidity management.

From Infrastructure Provider to Strategy Gateway

For years, institutional crypto participation has centered on three pillars: custody, liquidity, and execution. Yield generation, by contrast, has remained fragmented across funds, OTC desks, DeFi protocols, and structured products—often requiring separate onboarding, counterparty exposure, and operational complexity.

Kraken Institutional’s new model attempts to consolidate that sprawl.

Under the framework:

• Bitwise Asset Management serves as external strategy manager
• Gordon Grant, Bitwise’s Head of Derivatives, leads day‑to‑day portfolio management
• Kraken provides custody, trade execution, risk oversight, and governance

Importantly, assets remain within Kraken’s qualified custody environment, meaning institutions don’t need to transfer capital to an external venue to participate.

That architecture reflects a broader institutional preference: yield without infrastructure fragmentation.

Why Yield, and Why Now?

Institutional crypto adoption has matured. Large holders increasingly view Bitcoin and other digital assets as strategic allocations. Yet many of those positions generate little to no yield when held passively.

Yield opportunities exist—derivatives overlays, basis trades, structured strategies—but access has often been:

• Operationally complex
• Counterparty‑dependent
• Lacking unified risk oversight

Kraken is positioning itself as a gatekeeper and curator, offering access to external managers while maintaining governance and execution control within its regulated framework. It’s a model closer to traditional prime brokerage or platform‑based asset management than a typical exchange product listing.

The Bitwise Custom Yield Strategy: What We Know

The Bitwise Custom Yield Strategy becomes the first strategy available under Kraken Institutional’s new umbrella.

Key elements include:

• Delivered by Bitwise Asset Management as an external manager
• Subject to Kraken’s internal review and approval process
• Ongoing oversight aligned with Kraken’s operating standards
• Minimal lock‑up periods to support flexible liquidity

While specific strategy mechanics weren’t detailed publicly, the involvement of Bitwise’s derivatives leadership suggests structured or market‑neutral yield approaches rather than directional speculation.

For institutions, the combination of professional management and flexible liquidity may prove more compelling than self‑directed yield hunting.

A Broader Institutional Vision

Kraken describes this launch as only the first step. The longer‑term roadmap includes:

• Additional external specialist managers
• Select Kraken‑managed strategies
• A broader portfolio of professionally managed crypto offerings

The goal is to create a centralized operational framework where institutions can access diverse strategies without juggling multiple service providers.

That approach mirrors developments in traditional finance, where asset managers increasingly distribute through platforms rather than standalone funds.

In crypto, however, few exchanges have successfully bridged infrastructure and curated asset management at scale.

Competitive Context

The institutional crypto landscape is tightening.

Major exchanges and custodians are expanding into:

• Staking‑as‑a‑service
• Structured yield products
• Tokenized funds
• Prime brokerage offerings

At the same time, regulatory scrutiny has pushed institutions to favor counterparties with qualified custody, transparent governance, and structured oversight.

Kraken’s move positions it closer to a hybrid between exchange, custodian, and managed strategy platform—potentially competing not just with other crypto exchanges but also with digital asset managers and crypto‑native prime brokers.

If executed well, it could reduce friction for institutions that prefer a “single trusted venue” model.

Governance and Risk Emphasis

A key differentiator highlighted by Kraken is internal review and ongoing oversight. All strategies made available through Kraken Institutional must pass a structured approval process and remain subject to monitoring aligned with Kraken’s operating standards.

For institutions wary of opaque yield promises in crypto markets, that governance layer may be as important as headline returns.

The message is clear: yield should be professionalized, not improvised.

The Bottom Line

Kraken Institutional’s launch of the Bitwise Custom Yield Strategy marks a strategic pivot from infrastructure provider to curated strategy platform.

As institutional crypto allocations mature, passive holding is giving way to capital efficiency demands. The real opportunity lies in delivering yield within secure, regulated frameworks—without forcing clients to scatter assets across multiple venues.

If Kraken succeeds in scaling this model with additional managers and offerings, it could redefine how institutional investors access crypto yield: consolidated, overseen, and professionally managed.

And for an industry long defined by fragmentation, that consolidation could be the bigger story.

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