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2 June 2023
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Large institutions to gain easy and secure access to physical Bitcoin purchases

  • The crypto service providers will launch a solution for large institutions.
  • The move is just another evidence of growing interest towards digital assets.

A prominent billionaire and the head of the cryptocurrency bank Galaxy Digital, Mike Novogratz and a regulated trading platform for cryptocurrency derivatives Bakkt unveiled the launch of a joint trading service for institutional investors.

The partnership aims to provide risk-free and cost-effective opportunities for large investors seeking exposure to the lucrative digital assets market. Galaxy Digital Trading, Galaxy Digital’s affiliate, will provide access to the cryptocurrency market, while Bakkt Warehouse will be responsible for safeguarding digital assets for clients.

Tim Plakas, Head of Sales at Galaxy Digital Trading, the agreement with Bakkt was inspired by strong demand from traditional asset managers for the access to physical bitcoin trading solutions.

These funds expect the same caliber of market knowledge and trade execution expertise in BTC as they would expect from any established traditional finance desk, and Galaxy provides that, while Bakkt delivers the high level of regulatory-compliant security required for storing digital assets. Together, Galaxy Digital and Bakkt offer a safe, efficient, and well-regulated route into physical bitcoin access, one that has been already proven successful in the macro hedge fund space, he commented.

John Conneely, Head of Custody Business Development at Bakkt, also added that Bakkt Warehouse uses its best-in-class, trusted enterprise security framework adopted to the unique requirements and infrastructure of the new asset class. 

Alongside our adoption of safekeeping requirements that are unique to the digital asset class and its infrastructure, the Bakkt Warehouse uses the same best-in-class, trusted enterprise security framework that protects ICE’s dozen exchanges around the world, including the New York Stock Exchange. As one of the largest trading operations in the digital asset space, Galaxy Digital’s execution expertise and Bakkt’s custody solution are highly complementary.

Institutional adoption has been one of the hottest topics on the cryptocurrency market. According to the recent survey performed by Fidelity, about 80% of large institutions are considering investments in cryptocurrency, while one third of them has already added Bitcoin or Ethereum to their portfolios.

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