Valkyrie’s Bitcoin ETF Adds BitGo as Custodian
Valkyrie’s spot Bitcoin ETF, known as BRRR, has announced that it will now utilize the services of BitGo as a custodian alongside Coinbase Custody. This decision is outlined in a recent filing with the SEC. The filing states that Valkyrie plans to use both Coinbase and BitGo to custody the Trust’s bitcoin. This move comes as several other Bitcoin ETF issuers have also chosen Coinbase as their custodian, including BlackRock and Hashdex. However, concerns about Coinbase’s infrastructure and influence have led some issuers to explore alternative custodial options. Samson Mow, CEO of JAN3, predicts that more issuers may consider in-house custody or seek out Bitcoin-only custodians in the future.
Potential Shift Away from Coinbase Custody
Bitwise recently published the Bitcoin addresses for its BITB holdings, sparking discussions about transparency and custodial services. Samson Mow raised concerns about Coinbase’s lack of investment in its Bitcoin infrastructure and suggested that issuers may start considering in-house custody or migrating their BTC holdings to other custodians. Valkyrie’s decision to add BitGo as a custodian could be seen as a reflection of these concerns. As more spot Bitcoin ETF issuers evaluate their custodial options, it is possible that they will follow Valkyrie’s lead and diversify away from relying solely on Coinbase Custody.
Hot Take: Diversifying Custodial Services for Bitcoin ETFs
The addition of BitGo as a custodian for Valkyrie’s spot Bitcoin ETF highlights a growing trend among ETF issuers to diversify their custodial services. While Coinbase Custody has been a popular choice among issuers due to its established reputation, concerns about its infrastructure and potential influence have led some to seek alternative options. By utilizing both Coinbase and BitGo, Valkyrie is taking a proactive approach to mitigate any potential risks. This move could set a precedent for other issuers to explore multiple custodial solutions or even consider in-house custody. As the Bitcoin ETF landscape continues to evolve, custodial diversification may become a key consideration for issuers looking to enhance the security and integrity of their holdings.
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