BitGo has agreed to acquire NYDIG’s institutional trading business and related assets, expanding its reach into derivatives and capital markets as bitcoin trading activity picks back up.
Deal details
The acquisition will bring derivatives, structured products, financing, and other capital markets services under BitGo’s umbrella, complementing its existing custody, settlement, and wallet infrastructure.
Around 30 NYDIG employees and 250 institutional client relationships are expected to transfer to BitGo.
Terms of the deal were not disclosed.
BitGo’s institutional roots
Founded in 2013, BitGo is one of the earliest players in institutional bitcoin custody and infrastructure.
The company went public earlier this year and is headquartered in Sioux Falls, South Dakota, with a current market capitalization under $1 billion.
NYDIG’s trading arm serves asset managers, hedge funds, corporations, and family offices, with a focus on derivatives, financing, and customized trading strategies.
Market timing
The deal arrives as bitcoin has climbed more than 20% over the past week, briefly topping $80,000 on Tuesday after months of weak volume and lackluster investor participation.
Bitcoin’s latest price drawdown from its all-time high has been one of the steepest of the current cycle, and the acquisition is one of the first signs of a broader rebound in institutional trading activity.
