Bakkt and Fidelity to Provide Warehousing Facility to Galaxy Digital for Storing Bitcoins
Over the last year, ICE’s Bakkt and Fidelity Investments have been working on making the crypto space comfortable for institutional investors. Recently, both these financial giants are extending a helping to Mike Novogratz’s Galaxy Digital for storing Bitcoins for their newly launched funds.
Galaxy Digital is a financial services company founded by Wall Street veteran Mike Novogratz which focuses of offering investment solutions in the cryptocurrency and blockchain space.
Earlier this week, Galaxy Digital announced its two new Bitcoin funds for accredited institutional investors. The Galaxy Bitcoin Fund has a $25,000 minimum investment along with optional quarterly redemptions.
Last week, the ICE subsidiary Bakkt announced that it is offering institutional-grade custody solutions to its clients. In a blog post, Bakkt COO Adam White wrote: “When investors have ready access to regulated custodians whose security and processes they trust, the full potential of this emerging asset class and technology can flourish”.
He further added that while Bakkt offers “the foundation by which we securely store customer funds, the Bakkt Warehouse employs extensive physical, operational and cybersecurity safeguards too”.
Galaxy Digital’s new Bitcoin fund offering will join the suite of other products like Galaxy Crypto Index Fund. Paul Cappelli will be heading the management of these two newly launched funds. Both these funds will be passively managed meaning that the investments will be selected automatically.
Speaking on this collaboration, Mike Novogratz said: “Galaxy continues to have high conviction in bitcoin and has made significant strides in helping to bring a more institutionalized footprint to the digital asset ecosystem. We believe this effort is an important step forward in fulfilling this mission.”
In another positive development, the Fidelity Digital Assets Services (FDAS) has secured a license from the New York Department of Financial Services (NYDFS) to engage in digital currency business activity.
In its press release, Michael O’Reilly, Chief Operating Officer for Fidelity Digital Assets, said: “The custody and trade execution services that we provide are essential building blocks for institutional investors’ continued adoption of digital assets. The designation as a New York Trust Company under the supervision and examination of the DFS builds on the credibility and trust we’re establishing amongst institutions.”