Valkyrie Adds BitGo as Second Custodian for Bitcoin ETF: A Risk Mitigation Strategy

Jonathan Stoker Feb 02, 2024, 17:20pm 58 views

Valkyrie Adds BitGo as Second Custodian for Bitcoin ETF: A Risk Mitigation Strategy

Valkyrie Incorporates BitGo As Second Custodian For Its Bitcoin Fund

Valkyrie, a renowned provider of spot bitcoin exchange-traded funds (ETFs) in the U.S., has onboarded BitGo as an additional custodian for its BitcoinBitcoin$42,260 -0.64% Fund (BRRR). This move makes Valkyrie the pioneer among ETF providers to diversify the custody of its coins, utilizing both BitGo's and CoinbaseCoinbase's expertise.

A Significant Partnership

BitGo's CEO, Mike Belshe, lauds the partnership as a significant win, stating that Valkyrie is paving the way with the finest approach to lower risk in ETF custody. Industry observers have resonated with his sentiment, forecasting that additional ETF providers may soon follow suit, bringing in more custodians.

Industry Predictions and Reactions

Bloomberg analyst, James Seyffart, stated he anticipates that other funds may adopt a similar approach. Nate Geraci, president of The ETF Store, mentioned in an X post that dialogue is underway for other fund issuers with entities like GeminiGemini, KrakenKraken, and BitGo to serve as secondary custodians.

Bitcoin ETFs Gaining Traction

Recent updates report that Bitcoin ETFs from BlackRock and ProShares have surpassed GBTC's daily volumes, indicating the increasing popularity and acceptance of these investment vehicles in the market.

Edited by Jonathan Stoker

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