The investment company Galaxy Digital and Bakkt, provider of Bitcoin futures, Bitcoin options and safe storage for Bitcoins, presented their collaboration today. Together, institutional investors should be able to purchase and securely store digital assets. With the offer, however, the two companies are no longer without competition.
Investors expect security and competence
Institutional investors' interest in alternative investments like Bitcoin appears to be growing steadily. Just yesterday we reported that according to the Fidelity survey, in which 800 institutional investors were interviewed between November 2019 and March 2020, already have 25% Bitcoins (BTC) and 11% Ethereum (ETH).
Galaxy Digital and Bakkt don't want to miss out on this business either. Together today became a so-called White glove service (aka Premium Service), which is intended to make it easier for institutional investors and asset managers to access digital assets such as bitcoins. The offer includes the purchase, the creation of positions and the safe storage of the digital systems.
The new offering is a result of increasing demand from investors for this service, as Tim Plakas, Head of Sales at Galaxy Digital Trading, said in the press release:
We created this partnership to meet the increased demand that our two companies have received from traditional wealth managers looking for access to physical bitcoins.
For investors and asset managers, it is important that investments in Bitcoin and digital assets can be carried out as professionally and securely as they are used to with conventional investments by traditional financial service providers:
Investors expect from BTC the same level of market knowledge and expertise in trading execution that they would expect from any established traditional financial services provider, and Galaxy provides this, while Bakkt offers the high level of regulatory compliance that is required for digital storage Assets is required
Bakkt Warehouse for the safe storage of bitcoins (BTC)
Bakkt, responsible for storing the digital assets, guarantees a maximum of security with a combination of cold and hot wallets. The facilities are insured up to $ 125,000,000. After the offer for the secure storage of Bitcoin started in 2019, Bakkt today stores digital assets for more than 70 companies in the so-called "Bakkt Warehouse".
And Bakkt continues to develop: in March this year the company received one Investment of $ 300,000,000 USD from several well-known investors, including Microsoft's M12, Boston Consulting Group and Pantera Capital. A few weeks ago, Bakkt also announced that it had significantly increased the sum insured:
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