Bitcoin ETF Provider Valkyrie Adds BitGo as Second Custodian in Risk Mitigation Move
The digital asset investment firm has become the first of the ETF providers to diversify custody of its coins by tapping BitGo's expertise in addition to Coinbase
Feb 2, 2024 at 3:40 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/LIW4PTJ3RRHKJDN3SZ3JHBZLSQ.jpg)
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Valkyrie, one of the providers of the spot bitcoin exchange-traded funds (ETFs) now trading in the U.S., has added BitGo as a second custodian for its Bitcoin Fund (BRRR).
The digital asset investment firm has become the first of the ETF providers to diversify custody of its coins by tapping BitGo's expertise in addition to Coinbase.
Mike Belshe, CEO of BitGo, described the partnership as a "huge win," in a post on X, adding that Valkyrie is "leading the industry with the best approach to mitigate risk in ETF custody."
Commentators have echoed the sentiment, predicting that other ETF providers will also look to add supplementary custodians in the near future. Bloomberg analyst James Seyffart wrote that he "wouldn't be surprised to see some other funds to something similar."
Nate Geraci, president of The ETF Store, said in an X post that other fund issuers are talking to Gemini, Kraken, BitGo and others to serve as secondary custodians.
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Jamie Crawley is a CoinDesk news reporter based in London.