VALKYRIE's Bitcoin ETF pioneers custody diversity with COINBASE and BITGO.

Ritu77

According to a recent filing with the U.S. Securities and Exchange Commission (SEC), digital asset investment firm Valkyrie has become the first Bitcoin exchange-traded fund (ETF) to implement coin custody diversification. In order to enhance security and reliability, Valkyrie now collaborates with leading custody provider BitGo, in addition to Coinbase, to safeguard their funds.

Dated February 1, 2024, the filing reveals Valkyrie's effort to strengthen the security infrastructure of its spot Bitcoin ETF by hiring multiple custody providers. The collaboration with BitGo aims to optimize the security of their Bitcoin by diversifying funds previously held by Coinbase.

The document states: "On January 17, 2024, Valkyrie Bitcoin Trust ("Trust") and BitGo Trust Company, LLC ("BitGo"), a South Dakota trust company formed and chartered under the South Dakota banking laws, executed a custody services agreement." "Under the agreement, BitGo will provide services related to custody and safekeeping of Bitcoin held by the Trust."

By diversifying custody providers, the company not only enhances the security of its ETF assets but also sets a precedent for other Bitcoin ETF issuers seeking to protect client funds.

The filing further notes: "The Trust’s existing custody arrangement with Coinbase Trust Company, LLC (“Coinbase”) remains unaffected by the agreement." "The Sponsor anticipates utilizing custody services from both Coinbase and BitGo to custody the Trust's Bitcoin."

At a time when the Bitcoin industry is highly focused on security measures, Valkyrie aims to strengthen investor asset protection through its collaboration with Coinbase and BitGo, as it embarks on asset diversification.

Samiksha

Being the first one is quite impressive.

Kabir903

Is the term "coin" here referring to virtual currency?

Yamini003

Being able to achieve it is indeed the best.