Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Crypto ETF issuer 21Shares diversifies its custodian roster

Crypto ETF issuer 21Shares diversifies its custodian roster

BlockworksBlockworks2024/09/12 19:15
By:Blockworks

The investment firm onboards Anchorage Digital Bank and BitGo as partners alongside current custodian Coinbase

21Shares is adding two partners to safeguard assets for its US bitcoin and ether ETFs.

The crypto ETP issuer has tapped federally chartered Anchorage Digital Bank and digital asset security-focused BitGo to be custodians for the Ark 21Shares Bitcoin ETF (ARKB) and the 21Shares Core Ethereum ETF (CETH).

These two companies will join Coinbase, a crypto exchange that acts as a custodian for a majority of the US-listed spot BTC and ETH funds. 

“We consider our custody partners to be crucial to the risk management and operational excellence of our product lineup, and diversification adds to the safety and security of our offering,” 21Shares investment management head Andres Valencia said in a statement. 

Newsletter

Subscribe to Blockworks Daily

Subscribe

Read more: 21Shares exec talks US crypto ETF adoption, where we go from here

As the only digital asset bank with a charter from the Office of the Comptroller of the Currency, Anchorage offers “federally regulated and bankruptcy-remote custody” for crypto-native and traditional asset managers, Anchorage Digital CEO Nathan McCauley told Blockworks. 

Anchorage meets the Securities and Exchange Commission’s definition of a “qualified custodian,” McCauley has said — a term included in the regulator’s February 2023 proposal that would “entrust safekeeping of client assets” to such entities. 

“Our technical differentiators — including offline key storage, low-latency architecture and efficient share creation and redemption — are a major unlock for ETF providers,” he added. 

BitGo CEO Mike Belshe lauded 21Shares’ multi-custodial approach in a statement, adding that his company offers “100% cold storage.”

ARKB, which launched in January, has about $2.5 billion assets under management. Hitting the market more recently in July, CETH manages $9 million in assets.  

The decision to add more custodians for the funds comes after the FBI said in a statement last week that “malicious cyber actors” from North Korea conducted research on targets connected to cryptocurrency ETFs in recent months.

Such actors pose “a persistent threat to organizations with access to large quantities of cryptocurrency-related assets or products,” the agency added.

While most issuers of the spot bitcoin and ether ETFs use Coinbase as a custodian, Fidelity self-custodies and VanEck uses Gemini.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter .

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter .

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags
  • 21Shares
  • Anchorage Digital
  • Custody
  • ETFs
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!