Kraken, one of the world's largest cryptocurrency exchanges, announced its acquisition of retail futures trading platform NinjaTrader for $1.5 billion, enabling an expansion into multiple asset classes and an increase in its user base.
This acquisition aligns with a more relaxed regulatory environment in the crypto industry under U.S. leadership, which has offered support for the sector during the election.
Industry leaders are optimistic about potential policy shifts that could reduce enforcement actions, promote institutional adoption, and establish clearer regulations for digital asset trading.
Earlier this month, the U.S. Securities and Exchange Commission filed a civil lawsuit against Kraken, alleging it operated illegally as an unregistered securities exchange.
Ranked as the world's tenth-largest cryptocurrency spot exchange by various metrics including traffic and trading volumes, Kraken is positioned for growth as digital assets achieve greater acceptance.
The deal underscores the growing partnership between crypto firms and traditional financial institutions driven by increasing demand from retail traders for access to diverse asset classes, including stocks, bonds, crypto, and derivatives.
Oppenheimer analyst Owen Lau noted, "It is an important deal for the industry because it represents a crypto-native company acquiring a traditional finance entity, and it's a significant billion-dollar-plus deal." Lau anticipates more transactions as pro-crypto sentiments grow among policymakers and regulators.
Backed by Long Ridge Equity Partners, NinjaTrader will continue to function as an independent platform under Kraken.
Founded in 2003, NinjaTrader serves nearly 2 million traders by offering a cost-effective retail futures trading platform.
The acquisition is expected to finalize in the first half of 2025.