Nine new spot bitcoin exchange-traded funds have amassed more than 300,000 bitcoin in assets under management in less than two months. And so far, U.S.-based Coinbase has been the principal cryptocurrency exchange entrusted to serve as custodian for the issuers offering these new investment products.

But now Kraken, Coinbase's California-based rival, appears keen to challenge the status quo.

While announcing a new institutional brand on Tuesday, Kraken said it wants to alleviate the risk of relying on one company to provide the vast majority of custodial services to spot bitcoin ETF issuers.

"The approval and subsequent launch of the bitcoin ETFs have only underscored the need for a broader range of custody solutions," Kraken's Head of Institutional, Tim Ogilvie, told The Block. "The …