Kraken and Bitwise Introduce Custom Yield Strategy for Institutional Crypto Investors

Kraken Institutional and Bitwise launched a Bitcoin covered call strategy for qualified institutions, combining Kraken’s custody services with Bitwise’s yield generation expertise.

BTC

Summary

Kraken Institutional, in partnership with Bitwise, announced its first custodied investment strategy for qualified institutions. The offering focuses on Bitcoin, using covered call options to generate yield while keeping assets under Kraken custody. Bitwise provides professional management, while Kraken handles custody, trade execution, and risk oversight. This officially launched collaboration aims to help institutions earn returns from idle Bitcoin holdings through a structured, yield-focused approach.

Terms & Concepts
  • Custody: Secure holding and management of assets, including cryptocurrencies, on behalf of clients.
  • Covered Call: An options strategy where the seller holds the underlying asset and sells call options to generate additional income.
  • Yield Strategy: An investment approach focused on generating regular income from assets, such as interest, dividends, or options premiums.