Galaxy Digital and Bakkt to help asset managers buy Bitcoin

In brief:

  • Galaxy Digital has partnered with Bakkt to help institutional investors buy Bitcoin.
  • Galaxy traded over $ 1 billion in cryptocurrency in the first quarter of 2020.
  • Bakkt is about to release a new consumer app for handling digital assets.

Crypto investment company Galaxy Digital announced a partnership today with Bakkt, the crypto-derivatives platform of the Intercontinental Exchange – the same company that runs the New York Stock Exchange. The pair have launched a ‘joint trading and custody service’ for institutional investors who trade Bitcoin.

Galaxy takes care of trading and access to the market – it will obtain money from over 30 locations and providers to keep the system running smoothly at all times – while Bakkt offers its custody services through Bakkt Warehouse, which is regulated by the State of New York Ministry of Financial Services.

“We designed this partnership to meet the growing demand that our two companies have received from traditional asset managers seeking access to physical bitcoin,” said Tim Plakas, head of sales at Galaxy Digital Trading, in a pronunciation.

He added, “These funds expect the same level of market knowledge and expertise in trade execution in BTC as they would expect from an established traditional finance department, and Galaxy offers that, while Bakkt offers the high level of regulatory-compliant security that required to store digital assets. “

The partnership shows that there is a growing demand from institutional traders for Bitcoin. Galaxy traded over $ 1 billion in cryptocurrency in the first quarter of 2020. Bakkt raised $ 300 million in March; its custody services used by more than 70 customers (and comes standard with $ 125 million insurance); and its derivatives platform yesterday traded $ 10.3 million in Bitcoin futures contracts.

Bakkt is also about to release a new consumer app for dealing with digital assets. It appears to be tackling both institutions and retail.

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