Valkyrie Adds BitGo as Custodian for Spot Bitcoin ETF
Valkyrie has chosen BitGo as a custodian for its spot bitcoin exchange-traded fund, according to a regulatory filing. The company also plans to retain Coinbase Trust Company as a custodian. Valkyrie stated that it will utilize the custodial services of both Coinbase and BitGo to custody the Trust’s bitcoin.
Competition Heats Up Among Spot Bitcoin ETF Issuers
Spot bitcoin ETF issuers are exploring ways to increase profitability as competition intensifies, according to Bloomberg News. Firms have been reducing fees over the past month, with Invesco and Galaxy’s spot bitcoin ETF lowering its fee from 0.39% to 0.25%. Fidelity also decreased its fee to 0.25% before its spot bitcoin ETF was approved, down from 0.39%.
Hot Take: Custodian Selection Crucial for Success in the Spot Bitcoin ETF Space
The selection of a custodian plays a crucial role in the success of spot bitcoin ETFs. With multiple ETFs vying for market share, issuers are turning to well-established custodians like Coinbase and BitGo. The competition among firms is not only focused on fees but also on the reliability and security of custodial services. As the industry evolves, it will be interesting to see how custodians differentiate themselves and what impact it has on the overall success of spot bitcoin ETFs.
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