Digital asset exchange-traded funds (ETFs) have played a pivotal role in providing a diverse range of investors with exposure to cryptocurrencies this year. This, according to an updated shared by BitGo.
BitGo noted that since inception these ETFs have seen “approximately $16 billion in inflows, underscoring the importance of robust and diverse custody infrastructure.”
BitGo will serve as a custodian “for 21Shares’ US Spot ETFs — the ARK 21Shares Bitcoin ETF (ARKB) and the 21Shares Core Ethereum ETF (CETH).”
BitGo currently serves as a custodian “for two other ETF issuers, Hashdex and Valkyrie (now Coinshares), demonstrating its commitment to providing secure solutions for digital asset ETFs issuers and protecting investors’ assets.”
Mike Belshe, CEO of BitGo said:
“We’re excited that 21Shares is adopting a multi-custodial approach, prioritizing security for ETF holders. BitGo is proud to offer 100% cold storage as the leading independent custodian, serving the industry for over a decade as a trusted partner, and now for ETF issuers too.”
As a qualified custodian BitGo is responsible for “safeguarding assets with an enhanced level of diligence. Assets are secured with institutional-grade cold storage and robust security measures, mitigating the risk of theft or mismanagement.”
BitGo’s $250MM insurance policy and bankruptcy-remote structure also “provide peace of mind for both issuers and investors.”
Adam Sporn, BitGo’s Head of Prime Brokerage and U.S. Institutional Sales said:
“We look forward to growing our partnership with the great team at 21Shares as they have achieved an impressive growth in ETF assets over the last 8 months.”
BitGo, founded in 2013, is a “provider of secure digital asset wallet solutions, offering institutional-grade custody, staking, trading, and core wallet infrastructure.”
Notably, it supported the multi-signature wallet and “launched BitGo Trust Company in 2018, the first qualified custodian for digital assets.”
With a $250 million insurance policy, SOC 1 Type 2 and SOC 2 Type 2 certifications, and rigorous regulatory compliance, BitGo ensures “high standards of security and confidentiality.”
Expanding its services, BitGo introduced “institutional-grade DeFi, NFT, web3 offerings, and the Go Network.”
In 2023, it secured $100M Series C financing, “valuing the company at $1.75B. BitGo supports 800+ digital assets, processes 20% of on-chain Bitcoin transactions, and serves over 1,500 institutional clients across 50 countries.”
