For a few years, there has been a common goal in the crypto market: to get institutional investors to enter the market and acquire Bitcoin. Bakkt and Galaxy Digital They have decided to work to achieve it.
Union of titans
Yesterday, Galaxy Digital announced the partnership with Bakkt, the crypto subsidiary of Intercontinental Exchange (ICE), with the aim of launching a “joint custody and trading service” for institutional investors who wish to trade Bitcoin.
What does each party have to offer? Galaxy Digital, for its part, will be in charge of providing all the commercial services and functionalities. This precisely in order to take advantage of their existing accessories in 30 different exchange centers.
While, Bakkt will be in charge of offering the custody service through Bakkt Warehouse, which is regulated by the New York State Department of Financial Services.
“We designed this partnership to meet the increased demand that our two companies have received from traditional asset managers seeking access to physical Bitcoin.”, said Tim Plakas by Galaxy Digital in the published press release.
Furthermore, Plakas added that Together, Galaxy Digital and Bakkt offer a safe, efficient, and well-regulated route to physical access to Bitcoin. ”
Institutional interest in Bitcoin is a reality
Evidently the association reflects that there is a notorious and growing demand by institutional investors for Bitcoin. We, from CriptoTendencia, have reported the multiple reports that reflect this interest.
In fact, Galaxy Digital traded over a billion dollars in cryptocurrencies in the first quarter of the year alone. In a similar situation, Bakkt raised $ 300 million in March.
Therefore, in relation to the above, John Conneely, Chief Custodian of Bakkt, explained to Bloomberg that the association was established in response to strong institutional demand for exposure to crypto assets.
However, it could also be a desperate attempt by both companies to recover. In particular, both companies have struggled in recent months.
Although the derivatives offered by Bakkt received a lot of attention from the market, their demand has not been significant. And, in the case of Galaxy, in the last quarter of 2019 it experienced significant net losses.