On Feb. 1, 2024, Valkyrie Digital Assets, a cryptocurrency asset manager, revealed in a Form 8-K submission to the U.S. Securities and Exchange Commission (SEC) that it has selected Bitgo to provide custodial services for its spot bitcoin exchange-traded fund (ETF).
Bitgo to Safekeep the Bitcoin Assets Associated With Valkyrie’s BRRR
Recently acquired by Coinshares, Valkyrie, the fund management company, declared that Bitgo will engage in “custody and safekeeping of the Trust’s bitcoin holdings,” indicating that the custodian will oversee the funds of Valkyrie’s spot bitcoin ETF. Based in Nashville, Valkyrie was among the nine newly introduced spot bitcoin ETFs that became operational concurrently with the freshly revamped bitcoin trust managed by Grayscale.
The contract stipulates that Bitgo must uphold an insurance policy, which at the very least, provides coverage against duplication and theft of private keys, internal theft or fraudulent acts by Bitgo’s staff or executives, along with the loss of keys and asset theft closely associated with Bitgo’s key custody responsibilities. Coinbase Trust Company, presently serving as the custodian, will continue to be utilized by the firm, the Form 8-K filing signed by Valkyrie’s CEO Leah Wald details.
On Jan. 11, 2024, the day Valkyrie launched its spot bitcoin ETF named BRRR, Wald stated this marked “just the beginning of a new wave,” noting that the “launch of BRRR has been in the making for nearly three years.” Currently, Valkyrie’s website shows the BRRR fund possesses 2,649.46 BTC, valued at approximately $114 million at the time of reporting. Valkyrie’s decision to partner with Bitgo leads to a broader distribution of BTC across the ten ETFs, including GBTC.
At present, Coinbase Trust Company serves as the custodian for seven of the ten spot bitcoin ETFs. Coinbase oversees the assets for Grayscale, Blackrock, Ark Invest, Bitwise, Invesco, Franklin Templeton, and Wisdomtree. Fidelity independently manages its BTC, while Vaneck’s HODL funds are secured with Gemini. Valkyrie’s recent shift introduces Bitgo into this competitive landscape.
What do you think about Valkyrie choosing Bitgo for custody services? Share your thoughts and opinions about this subject in the comments section below.
from Bitcoin News https://ift.tt/KDNBbjI
