Nobody wants to miss out on the opportunity that cryptocurrencies represent. And, thanks to the surprising advance in the price of the main crypto assets in recent months, dozens of large institutional investors have begun to evaluate the possibility of investing in the crypto market. Which is why the Rothschild mutual fund now backs Kraken. Acquiring a stake in the cryptocurrency exchange prior to its potential IPO.
Coinbase points the way for Kraken
For several days, commentators and analysts from the crypto world have mentioned the opportunities that have been opened up for cryptocurrency companies thanks to Coinbase. This is so, now that the largest exchange in the United States is publicly traded, a precedent has been set that is likely to be followed by other exchanges and companies that work with Blockchain technology.
This could very well be the case of Kraken, another of the large cryptocurrency exchanges worldwide, being the fourth cryptocurrency exchange platform by volume of operations. Which has seen record profits and constant growth in its number of users in recent months. Thanks to the big bull rally fueled by Bitcoin and the start of the altcoin season. Which has opened the possibility for his board of directors to carry out an IPO in 2022. Something reaffirmed by James Glass:
«According to media reports, Kraken is considering going public via direct listing in 2022, after hitting record trading volumes and numerous new clients amid a surge in Bitcoin’s price.».
The Rothschilds also play
For that reason it should come as no surprise that RIT Capital Partners, formerly Rothschild Investment Trust, decided to invest in Kraken in anticipation of its future IPO. RIT Capital would have a capital of 5.3 billion dollars, and would be closely related to the Rothschild family of bankers, with the patriarch of the family, Jacob Rothschild, the president of the organization.
Thus, RIT Capital Partners would trust Kraken’s future performance in the cryptocurrency market. Which makes sense considering that the exchange processed 4.8 billion dollars in transactions through its platform in the last 24 hours. And that it plans a new round of fundraising that could further increase its market value, as reported by the investment firm itself.
«Talks have reportedly been held with firms such as Fidelity, Tribe Capital and General Atlantic. Kraken CEO Jesse Powell said this is being delayed to assess how the Coinbase IPO is performing».
Although at the moment the magnitude of the investment of RIT Capital Partners is not known. The fact that a Rothschild mutual fund backs a cryptocurrency exchange is a good sign for the future of crypto assets in the traditional financial market.