Valkyrie adds BitGo as custodian of its Bitcoin spot ETF

Valkyrie has added BitGo as a custodian for its Bitcoin spot exchange-traded fund, according to a regulator. deposit posted Thursday.

Valkyrie said it still plans for Coinbase Trust Company to remain a custodian as well.

“The sponsor plans to use the custody services of Coinbase and BitGo to hold the Trust’s bitcoin,” Valkyrie said.

Many spot Bitcoin ETFs that have gained approval from the Securities and Exchange Commission have Coinbase as their custodian, including BlackRock, Bitwise, and Ark21. The Hashdex spot bitcoin ETF, which was also approved last month, lists BitGo as its guardian.

Mike Belshe, CEO of BitGo, called Valkyrie’s decision to add his company as a custodian a victory for the industry, in an article on X, formerly known as Twitter.

“Valkyrie added @BitGo as guardian of their #Bitcoin ETFs. This is a huge win for the industry as we work together to secure their assets,” Belshe said Thursday. Congratulations to @valkyriefunds, @LeahWald And @stevenmcclurg for leading the industry with the best approach to mitigating ETF custody risks.

Competition is intensifying

Issuers of spot Bitcoin ETFs are looking for ways to increase profitability as competition heats up among companies, according to Bloomberg News.

Companies have also continued to cut fees over the past month. The bitcoin spot ETF from Invesco and Galaxy, which is more in the middle of the pack, abandoned its fees from 0.39% to 0.25% at the start of the week.

loyalty lowered its fees to 0.25% just before the approval of its spot bitcoin ETF, up from 0.39%.

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© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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