Valkyrie to Diversify Custody of Bitcoin ETF Assets Across BitGo and Coinbase
Key Points:
- Valkyrie has become the first spot Bitcoin Exchange-Traded Fund (ETF) to diversify the custody of its coins.
- The investment firm will work with custodian providers BitGo and Coinbase to safeguard their funds.
- The move aims to enhance security and reliability for the Valkyrie Bitcoin ETF.
- The collaboration with BitGo allows for the diversification of the fund’s bitcoin holdings.
- The decision sets a precedent for other Bitcoin ETF issuers to protect their customers’ assets.
- Valkyrie’s choice to diversify assets aligns with the industry’s focus on security measures in the Bitcoin space.
Article:
Valkyrie Bitcoin ETF Embraces Multiple Custodians for Enhanced Security
Digital asset investment firm Valkyrie has taken a groundbreaking step in securing its spot Bitcoin Exchange-Traded Fund (ETF) by diversifying the custody of its coins. In a recent filing with the Securities and Exchange Commission (SEC), Valkyrie announced its collaboration with leading custodian provider BitGo and current custodian Coinbase.
The move comes as part of an effort to fortify the security and reliability of Valkyrie’s Bitcoin ETF. By engaging the services of multiple custodians, the investment firm aims to optimize the protection of its bitcoin holdings. The decision to work with BitGo is in addition to the existing partnership with Coinbase, further diversifying the custody providers for the fund’s assets.
According to the filing, the Custodial Services Agreement between Valkyrie Bitcoin Fund and BitGo Trust Company, Inc. was established on January 17, 2024. BitGo, a South Dakota trust company, will provide services related to the custody and safekeeping of the trust’s bitcoin holdings. The agreement confirms that Valkyrie will continue utilizing the custodial services of both Coinbase and BitGo to safeguard the bitcoin assets of the Trust.
Valkyrie’s move to diversify custody providers not only strengthens the security of its own ETF, but it also sets a precedent for other Bitcoin ETF issuers. By demonstrating the importance of protecting customers’ funds through multiple trusted custodians, Valkyrie encourages a higher standard of security within the industry.
This decision comes at a time when the Bitcoin industry is placing a heightened focus on security measures. By partnering with Coinbase and BitGo, both reputable entities known for their expertise in bitcoin custody, Valkyrie aims to provide robust protection for its investors’ assets. The investment firm expects to immediately utilize BitGo’s services to safeguard a portion of the Trust’s bitcoin, further enhancing security starting from the date of the filing.
