Institutional Digest: MicroStrategy Invests in Bitcoin, Kraken Gains Bank Status

The first month of autumn traditionally marks the start of a new season of business activity, and the cryptocurrency industry is not left out. ForkLog has gathered in its traditional digest the most significant events of recent weeks related to investments and other institutional activity.

Kraken Gains Bank Status

The Bitcoin exchange Kraken became the first in the United States to receive the status of a special-purpose depository institution (SPDI), endowing it with the functions of a traditional financial institution. The Wyoming Banking Board approved the corresponding application by the California company.

This framework was designed specifically for crypto firms and will allow Kraken to dispense with third-party providers, performing certain banking functions in-house. These include taking deposits, custodial services, and fiduciary management of digital assets.

With greater regulatory clarity, Kraken gains direct access to the federal payments infrastructure and plans to build a full bridge between the traditional financial system and cryptocurrencies. It will include its own debit cards supporting digital assets, as well as interest-bearing and retirement accounts.

To realize these capabilities, Kraken is opening a new division headquartered in Cheyenne, Wyoming, provisionally named Kraken Financial. The company plans for Kraken Financial to go global.

MicroStrategy Becomes the First Public Company to Invest in Bitcoin

Nasdaq-listed software analytics company MicroStrategy has adopted a new reserve-management policy that includes Bitcoin investments.

MicroStrategy’s reserves will consist of fiat currency, its equivalents, and short-term investments, as well as Bitcoin. The board decided to use cryptocurrency as a primary reserve asset on a permanent basis.

“This reflects our belief that Bitcoin, as the world’s most popular cryptocurrency, is a reliable store of value and an attractive investment asset. Its long-term potential is higher than fiat money,” said the company’s CEO, Michael Saylor

In August, MicroStrategy acquired 21,454 BTC (about $250 million at the rate at the time of the deal). On September 14, the company additionally bought 16,796 BTC for $175 million. Total investments by MicroStrategy in the first cryptocurrency, including fees and costs, Michael Saylor valued at $425 million.

Later, the head of the company said that the process of purchasing the second tranche of cryptocurrency consisted of 74 hours of uninterrupted trading, 88,617 orders for 0.19 BTC every three seconds or $39,414 in Bitcoin per minute.

Dan Tapiero: Bitcoin Will Attract Institutions Because of Dollar Debasement

The interest of American institutional investors in gold in the medium term will positively affect the mass adoption of Bitcoin, believes Dan Tapiero, co-founder of Gold Bullion International and 10T Holdings.

According to him, a major step in this direction was taken by the Ohio Police and Fire Pension Fund, which invested $168 billion – 5% of total investments – in gold, hedging itself against inflation amid the global dollar recession.

“Fiat devaluation stimulates investments in gold now and in Bitcoin in the future,” said Tapiero.

Singapore Exchange Adds Cryptocurrency Indices

The Singapore Exchange (SGX) announced the listing of the first cryptocurrency indices in its history: iEdge Bitcoin Index and iEdge Ethereum Index.

Support for the indices has been added as part of SGX’s partnership with CryptoCompare, a data provider for the crypto market, whose data are validated by regulators. Now any Singaporean company that wants to create a product or investment instrument based on Bitcoin or Ethereum can verify the exact value of assets.

Despite the growing popularity of cryptocurrencies in Singapore, the Monetary Authority of Singapore continues to work on regulating the industry. The new SGX indices will help financial institutions create crypto products once authorities settle on the main regulatory rules.

Vienna Stock Exchange Adds Bitcoin and Ethereum-Based Products

Bitcoin and Ethereum-based ETPs from the crypto exchange-traded product provider 21Shares have been added to the listing on the Wiener Börse. On September 1, the exchange listed ETFs under tickers ABTC and AETH, linked to BTC and ETH.

Wiener Börse has become the third regulated market in the world to list Bitcoin, 21Shares said.

“The largest exchange in the DACH countries (Germany, Austria and Switzerland) has accepted the Bitcoin ETP. This achievement again demonstrates institutional interest and, more importantly, regulatory recognition of this new class of digital assets,” said the Swiss company.

In July, 21Shares’ crypto ETPs began trading on the XETRA Deutsche Börse, which hosts more than 90% of German stock trading and around 30% of European ETF trading.

In less than two years of operation, 21Shares has attracted assets under management of more than $100 million.

Liquidity Provider Wootrade Secures Backing from New Investors

Taiwan-based Wootrade announced that it has secured new financing from institutional investors including Three Arrows Capital, IOSG Ventures, QSN and Defi Capital.

Investors backing the company have previously funded projects such as 1inch, Synthetix and Aave. The amount raised has not been disclosed.

Wootrade aims to solve liquidity fragmentation across both centralized and decentralized exchanges. The proposed technology for accessing deep liquidity pools is viewed as one of the key aspects addressing the needs of professional traders and large institutions.

The new capital will enable the expansion of the development team and will also bolster Wootrade’s marketing program.

Pantera Capital Leads Investment Round for Bitcoin Options Trading Platform Developer

Singapore-based PowerTrade, developing a mobile platform for trading Bitcoin options and other crypto derivatives, raised $4.7 million in a private token sale. The round was led by venture capital firm Pantera Capital.

Participants in the token sale included CMS Holdings, Boxone, QCP Capital, LedgerPrime, Taureon Capital, Signum Capital, Astronaut Capital, Acheron Trading, AGE Crypto and 3Commas, as well as private investors including CoinGecko co-founder Bobby Ong.

The funds raised will be directed toward expanding the development team. The app launch is planned in the coming months.

On Tuesday, September 22, starts a public token sale for retail investors.

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