Kraken Institutional launches first managed crypto yield strategy with Bitwise

Kraken Institutional has introduced its inaugural managed investment strategy, the Bitwise Custom Yield Strategy, in partnership with Bitwise Asset Management. This offering allows eligible institutional clients access to a professionally managed, yield-focused strategy where Bitwise handles portfolio management, and Kraken provides custody, execution, and risk oversight. This launch signifies Kraken Institutional's move to offer a comprehensive platform for managed crypto strategies, aiming to eliminate the need for institutions to coordinate across multiple custodians and asset managers. The initial strategy focuses on bitcoin, employing a covered call options approach to generate yield, which also offers a partial buffer against price declines while capping upside gains during sharp rallies. Kraken's framework enables external managers like Bitwise to run strategies while client assets remain securely within Kraken's custody.

(Source：The Block)