Wall Street And “Block Street” Are Continuing to Merge

While Bitcoin is enjoying a recovery rally and briefly traded above $75,000 this week, financial institutions are continuing their move into digital assets, with Deutsche Börse investing $200 million in Kraken’s parent company, Payward, and Goldman Sachs filing for a Bitcoin Premium Income ETF.

TL;DR

• Deutsche Börse acquires a $200 million stake in Kraken’s parent company, Payward, to expand its institutional offering through the partnership. 

• Goldman Sachs becomes the next Wall Street giant to file for a Bitcoin ETF. 

Deutsche Börse Acquires a $200 Million Stake in Kraken 🐙

Kraken is one of the oldest and most established crypto exchanges. Just a few weeks ago, I wrote about them gaining access to a Fed Master Account and how the company is pushing forward with integrating digital assets into the existing financial system. 

This week, we have some exciting news from Germany, where Deutsche Börse has announced a $200 million stake in Kraken’s parent company, Payward. 

In the press release, translated from German, the exchange states that it invested to strengthen its institutional product offerings and that, based on the partnership announcement with Kraken from December 2025, it's eager to get started. 

This collaboration and subsequent funding encompass key areas, including custody, trading, collateral management, settlement, and tokenized asset handling. 

Deutsche Börse notes that the primary objective is to facilitate streamlined access to both financial landscapes for institutional users by providing comprehensive, integrated solutions.

And this is not the first time the German company has done this! Back in 2021, they also acquired Crypto Finance as part of their first push into digital assets. 

Since I used to work for Deutsche Börse, I know they are forward-thinking when it comes to adopting blockchain and digital assets, so I am excited to see their next moves.

Goldman Sachs Files for Bitcoin Premium Income ETF 💪

It seems like Wall Street can’t slow down with launching its own Bitcoin products. 

Just last week, I wrote about the successful launch of the Morgan Stanley spot Bitcoin ETF (MSBT) and how I wouldn’t be surprised if other Wall Street giants would do the same. 

Fast forward, and my guess is already taking shape in reality. Goldman Sachs is the latest company to announce a dedicated Bitcoin product. 

Unlike Morgan Stanley, which opted for a spot Bitcoin ETF, Goldman decided to file for a Bitcoin Premium Income ETF with the SEC.

Issuers like BlackRock and Grayscale have already introduced similar "premium income" structures. This strategy aims to convert Bitcoin's price swings into a consistent yield for investors, a path that the Goldman ETF also aims to take.

These investment vehicles generally maintain exposure to BTC by holding shares in an established spot Bitcoin ETF and subsequently sell call options against those holdings to generate income from option premiums.

Under this "covered-call" framework, funds are gathered from option purchasers and paid out as yield. In return, investors forgo a portion of Bitcoin's potential gains if the price rises beyond a predetermined strike level.

Earlier in February, we read that the bank holds a significant Bitcoin position on its balance sheet through spot Bitcoin ETFs. 

Now they go a step further and offer their own premium income ETF, and who knows, maybe they’ll offer Bitcoin spot trading soon too. I have a feeling that most banks eventually will.  

Elsewhere in Bitcoin 📖

A quick look at what else has been happening in Bitcoin: 

• Stablecoin volumes could hit $1.5 quadrillion by 2035

• HSBC and StanChart get the first Hong Kong stablecoin license

• Fed Chair nominee discloses $100 million crypto and AI holdings

• According to Michael Saylor, Strategy is gearing up to buy Bitcoin again

• SEC says software allowing crypto wallet transactions is not considered a broker

Your fellow stacker in sats, 

Patrick Lowry

PS: If you want to see how the value of goods and services changes when priced in Bitcoin, check out the Samara BTC CPI. It might give you a new perspective on holding Bitcoin on your company’s balance sheet or just as an individual.

Disclaimer: The opinions expressed in this newsletter are solely those of the author and do not necessarily represent the views of any associated company. This newsletter is for educational and informational purposes only and should not be construed as investment, financial, or any other professional advice. Nothing here is a solicitation, offer, or recommendation to buy or sell any asset or to use any service. Investing in cryptocurrencies is highly speculative and carries a significant risk of substantial financial loss, so you must conduct your own thorough research and consult with independent professional advisors before making any decisions.