Kraken Institutional Launches Managed Crypto Yield Strategy

Kraken Institutional has launched its first managed investment strategy, partnering with Bitwise to offer yield-focused crypto products to institutional clients. The new offering is called the Bitwise Custom Yield Strategy.

Under the arrangement, Bitwise manages the portfolio while Kraken provides custody, trade execution, and risk oversight. The strategy initially focuses on Bitcoin and uses a covered-call options approach to generate yield by selling call options against holdings.

This structure allows investors to earn income while gaining some downside protection if Bitcoin prices fall, though gains are capped during sharp rallies. Kraken said the move addresses a common issue for institutions that hold crypto but earn little or no yield.

The launch marks Kraken Institutional’s first step toward offering multiple professionally managed strategies through a single platform. The exchange said more strategies and external managers will be added over time.

Kraken believes simplifying access to yield products will help institutions participate in crypto markets with greater confidence and operational ease.

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