Valkyrie Innovates ETF Custody with BitGo Partnership
Valkyrie becomes the first to diversify its ETF custody by partnering with BitGo, setting a new standard in the industry.
February 2, 2024
The Move Towards Diversified Custody
As the provider of spot bitcoin exchange-traded funds (ETFs) in the U.S., Valkyrie has included BitGo as an additional custodian for its Bitcoin Fund (BRRR), marking a milestone in ETF security by employing BitGo's proficiency alongside Coinbase. This strategic move paves the way for heightened safety in digital asset management.
Industry Acknowledgment
BitGo's CEO, Mike Belshe, hails the collaboration as a pivotal victory, establishing Valkyrie as a frontrunner in reducing ETF custody risks. Similarly, industry analysts anticipate a trend where ETF providers will increasingly adopt multiple custodians to enhance security measures.
Wider Industry Impact
Other ETF providers are predicted to follow Valkyrie's lead, seeking additional custodial partnerships. Nate Geraci, President of The ETF Store, highlighted ongoing discussions between fund issuers and potential secondary custodians like Gemini, Kraken, and BitGo.
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