Catenaa, Thursday, February 12, 2026- Kraken Institutional on Thursday unveiled its first managed investment strategy, partnering with Bitwise Asset Management to offer yield-focused crypto exposure for institutional clients.
The Bitwise Custom Yield Strategy allows eligible clients to access a professionally managed portfolio while keeping assets in Kraken’s custody. Bitwise handles portfolio management, including covered call option positions on bitcoin, while Kraken provides execution, risk oversight, and custody services.
The approach generates yield and offers partial downside protection by offsetting losses if bitcoin declines, though gains are capped during sharp rallies.
Kraken Institutional said the launch marks the start of a broader effort to provide multiple managed strategies on a single platform, reducing the need for institutions to coordinate across multiple exchanges, custodians, and asset managers.
Additional strategies and third-party managers are expected to be added over time.
Many institutional investors currently hold crypto assets that produce little or no yield, and accessing structured yield products often requires complex arrangements across service providers.
Kraken said its framework enables external managers like Bitwise to operate strategies while assets remain securely within Kraken custody.
