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Post: Valkyrie Adds BitGo as Custodian for Spot Bitcoin ETF: Enhancing Security and Diversifying Holdings

Valkyrie Adds BitGo as Custodian for Spot Bitcoin ETF: Enhancing Security and Diversifying Holdings

Key Points:

  • Asset management firm Valkyrie has added BitGo as the custodian for its spot Bitcoin ETF.
  • The custodial services agreement between Valkyrie and BitGo was entered into on January 17.
  • BitGo will provide services related to the custody and safekeeping of Valkyrie ETF’s Bitcoin holdings.
  • Valkyrie still plans to use Coinbase as a custodian, making it the first spot Bitcoin ETF issuer to diversify its custodians.

BitGo Chosen as Custodian for Valkyrie’s Spot Bitcoin ETF:

Asset management firm Valkyrie has chosen BitGo as the custodian for its recently launched spot Bitcoin ETF. The custodial services agreement between Valkyrie and BitGo was signed on January 17, with BitGo being responsible for the custody and safekeeping of Valkyrie ETF’s Bitcoin holdings. This move shows Valkyrie’s commitment to ensuring the security and protection of its assets.

Continued Use of Coinbase as Custodian:

Despite adding BitGo as a custodian, Valkyrie still plans to use Coinbase as a custodian as well. This makes them the first spot Bitcoin ETF issuer to diversify their digital asset custodians. By using multiple custodians, Valkyrie aims to further enhance the safety and security of its Bitcoin holdings.

Hot Take:

This move by Valkyrie to diversify its custodians is a smart one. By utilizing the services of both BitGo and Coinbase, they are reducing their reliance on a single custodian and spreading the risk across multiple reputable companies. This can help protect against potential risks such as cybersecurity breaches or operational failures. It also demonstrates the growing importance of custodial services in the cryptocurrency industry, as more institutional investors enter the market and require robust security measures for their digital assets.

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