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Kraken Eyes Crypto ETF Custody Market amid Rising Ether ETF Expectations

Eyeing Growth Potential in Evolving Crypto ETF Space

Major crypto exchange Kraken is reportedly assessing entering the cryptocurrency exchange-traded funds (ETFs) custody market, looking to compete with industry leader Coinbase. According to Fox Journalist Eleanor Terrett, Kraken aims to challenge Coinbase’s dominance in crypto ETF custodian services.

Coinbase currently acts as custodian for nine of the twelve proposed $BTC ETFs in the U.S. Custodians like Coinbase are responsible for securely storing and managing the crypto assets owned by ETFs. While Bloomberg television interview notes Coinbase’s prominence, other custodians also operate in the space.

Focus on Ethereum ETFs

Kraken CEO David Ripley mentioned in a #cryptoETF that the exchange is set to launch a new custody product this quarter. Ripley sees synergy in offering both custody and liquidity services. Custody rates vary from 10 to 50 basis points depending on additional services utilized.

Kraken is specifically interested in becoming the custodian for upcoming spot #crypto Ether ETFs. Bakkt Holdings CEO Gavin Michael highlights that ETFs will compete on price, affected by custody and trading costs. Bakkt is also in discussions for potential custody roles, similar to BitGo.

Plans for Crypto Bank in the U.S.

Last year, @krakenfx announced plans to launch a new crypto bank in the U.S., offering various services, including deposit accounts and institutional custody products. Entering the crypto ETF custody market would complement those ambitions.


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