Gaining the Attention of Institutional Investors

Kraken, one of the world’s biggest crypto exchanges, has attracted the attention of $5.3 billion London-based investment trust RIT (Rothschild Investment Trust) Capital Partners, which acquired a stake in the exchange.

According to a note published to investors by James Glass, the possibility of a direct listing in 2022 and the role the exchange plays in the growing crypto ecosystem had sparked the interest of RIT Capital in Kraken.

The note does not specify the value of RIT capital’s investment in the crypto exchange but seems to be positive when it comes to the future of the exchange, comparing it with another titan of the industry which recently went public in NASDAQ.

Kraken’s talks with investors were also mentioned by Glass, who referred to the potential of new fundraising to give the exchange a valuation of up to $20 billion. Some of the investors taking part in the discussions seem to include Fidelity, Tribe Capital, and General Atlantic.

With the continued growth of the cryptocurrency market over the past decade, which has accelerated over the last 2 years in an unprecedented way, Cryptocurrency Exchanges have grown in popularity as they become some of the most profitable business in the industry, attracting investors in a way never seen before in the industry.

Coinbase Performance Is Being Observed by Kraken

While there is still more than 8 months before the possible listing of Kraken, the interest in going public has already been discussed in an interview with CNBC by the company’s Chief Executive Officer (CEO), Jesse Powell.

He stated that the company is considering going public at some point during 2020, with the chosen method being most probably a direct listing. This was the same method chosen by Coinbase to go public, which Coinbase’s CEO referred to as “more true to the ethos of crypto”.

Powell also said the company was in no hurry to raise capital at this time but was focusing on bringing “more strategic investors” that boosted the…

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