Since a few years ago there are in the crypto market a common objective: to ensure that the institutional investors enter the market and acquire Bitcoin. Bakkt and Galaxy Digital have decided to work to achieve it.
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Union of the titans
Yesterday, Galaxy Digital announced the partnership with Bakkt, the crypto-owned subsidiary of Intercontinental Exchange (ICE), with the aim of launching a “joint service trading and custody” for institutional investors who wish to trade with Bitcoin.
Our partnership with Galaxy Digital makes it easier for asset managers to invest in bitcoin, following a spike in demand seen over the last quarter https://t.co/19FF2d1LhE
— Bakkt (@Bakkt) June 10, 2020
“Our partnership with Galaxy Digital makes it easier for institutional investors to invest in Bitcoin, from an increase in demand during the last quarter,” wrote Bakkt on Twitter.
What you have to offer each one of the parties? Galaxy Digital, for its part, will be in charge of providing all the services and functionalities trade. This is precisely with the aim of taking advantage of their add-ons existing in 30 centers exchange different.
While, Bakkt will be in charge of providing the service of custody through Bakkt Warehouse, which is regulated by the State of New York Department of Financial Services.
“We designed this partnership to meet the increase in demand, our two companies have received from the managers of traditional assets seeking access to Bitcoin physical,” said Tim Plakas Galaxy Digital in the press release published.
In addition, Plakas added that “together, Galaxy Digital and Bakkt offer a path to safe, efficient and well-regulated to the physical access to Bitcoin”.
The institutional interest in Bitcoin is a reality
Evidently the association reflects that there is a noticeable and growing demand on the part of institutional investors about Bitcoin. Us, from CriptoTendencia, we have reported the multiple reports that reflect this interest.
In fact, Galaxy Digital was negotiated more than a billion dollars in cryptocurrencies only during the first quarter of the year. In a similar situation, Bakkt raised $ 300 million in march.
Therefore, with regard to the former, John Conneely, Head of custody of Bakkt, explained to Bloomberg which the association was established in response to strong institutional demand for exposure to the crypto-assets.
However, it could also be a desperate attempt by both companies to recover. In particular, both companies have struggled over the last few months.
Although the derivatives offered by Bakkt gained a lot of attention on the part of the market, its demand has not been important. And, in the case of Galaxy, in the last quarter of 2019 experienced significant net losses.