Kraken Acquires Breakout, Launches $200K Prop Trading
Kraken acquires Breakout, a crypto-native prop trading firm, and integrates its evaluation-based model into Kraken Pro. Traders who pass a structured risk assessment can access up to $200,000 in funded accounts with up to 5x leverage on BTC and ETH contracts. They keep up to 90% of profits. The platform enforces strict drawdown limits, requalification rules and allocates capital on merit. The move adds institutional-grade tools and liquidity within a regulated exchange environment. It follows Kraken’s purchase of Capitalise.ai and its MiCA licence in the EEA, as the exchange prepares for a possible IPO in early 2026.
Bullish
This news is bullish for BTC and ETH. By introducing Breakout’s evaluation-based funding, Kraken Pro will attract more skilled traders and capital. The up-to-$200k funded accounts and up to 5x leverage can drive higher trading volumes, greater liquidity and potentially price support. In the short term, we may see increased volatility as new traders deploy capital. Over the long term, stronger infrastructure and institutional-grade tools can bolster market depth and confidence, underpinning sustained demand for BTC and ETH.