Kraken’s Breakout Acquisition Signals Institutional Bet on Crypto Prop Trading’s Explosive Growth

Kraken's September 2025 acquisition of Breakout, a proprietary trading firm, marks the first time a major crypto exchange directly entered the prop trading space, combining Kraken's infrastructure with Breakout's skill-based funding model. This move reflects the massive growth of prop trading, which saw search volume surge over 5,000% between 2020 and 2025, with the market projected to reach $14.5 billion by 2033. Kraken's prior acquisitions of NinjaTrader and Capitalise.ai suggest a strategic push toward professional trading infrastructure, possibly in preparation for an IPO. The deal validates the funded trader model, intensifying competition with established players like FTMO, which is expanding its crypto offerings. While institutional entry brings credibility and better infrastructure, it also raises the bar for entry. The article notes that the next frontier involves integrating AI coaching for systematic trader development, as most traders fail initial evaluations due to psychological and technical gaps, a challenge platforms like Fondeo.xyz are attempting to address.

(Source：BeInCrypto)