Valkyrie Partners with BitGo to Secure Bitcoin ETF Custody

Introduction

Asset management firm Valkyrie has recently announced that it has added digital asset trust company BitGo as a custodian for its spot Bitcoin exchange-traded fund (ETF). This move comes as Valkyrie aims to diversify its digital asset custodians, while still planning to utilize Coinbase as a custodian.

Partnership with BitGo

In an 8-K filing to the United States Securities and Exchange Commission (SEC) on February 1st, Valkyrie revealed that it has entered into a custodial services agreement with BitGo. This agreement, which was established on January 17th, allows BitGo to provide services related to the custody and safekeeping of the Valkyrie ETF's Bitcoin holdings.

Diversifying Custodians

Despite the partnership with BitGo, Valkyrie has stated that it still plans to use Coinbase as a custodian for its Bitcoin ETF. By diversifying its digital asset custodians, Valkyrie aims to ensure the security and safekeeping of its Bitcoin holdings. This approach reduces the risk associated with relying on a single custodian.

Conclusion

Valkyrie's decision to partner with BitGo as a custodian for its spot Bitcoin ETF demonstrates the firm's commitment to ensuring the security and safekeeping of its digital assets. By diversifying its custodians, Valkyrie aims to mitigate risk and provide investors with a greater level of confidence in its Bitcoin ETF. This move also highlights the growing importance of custodial services in the cryptocurrency industry, as institutional investors seek reliable and secure solutions for managing their digital assets. As Valkyrie continues to navigate the evolving landscape of digital asset management, its partnerships with BitGo and Coinbase position the firm as a trusted player in the market.