Valkyrie Becomes First Spot Bitcoin ETF to Diversify Coin Custody with BitGo and Coinbase

Digital asset investment firm, Valkyrie, has made history by becoming the first spot Bitcoin Exchange-Traded Fund (ETF) to diversify the custody of its coins. This groundbreaking move was revealed in a recent Securities and Exchange Commission (SEC) filing, where Valkyrie announced its partnership with leading custodian provider BitGo, in addition to its existing collaboration with Coinbase.

The decision to diversify custody providers is a strategic move by Valkyrie to enhance the security and reliability of its spot Bitcoin ETF. By engaging multiple custodians, the firm aims to optimize the safety of its bitcoin holdings and protect the assets of its investors.

According to the filing dated February 1, 2024, Valkyrie Bitcoin Fund and BitGo Trust Company, Inc. have entered into a Custodial Services Agreement. This agreement outlines BitGo’s role in providing services related to the custody and safekeeping of the Trust’s bitcoin holdings, alongside the existing arrangement with Coinbase Trust Company, LLC.

By diversifying custody providers, Valkyrie not only strengthens the security infrastructure of its ETF assets but also sets a precedent for other Bitcoin ETF issuers looking to safeguard their customers’ funds. The decision to work with reputable entities like Coinbase and BitGo, known for their expertise in bitcoin custody, reflects Valkyrie’s commitment to protecting its investors’ assets in an increasingly complex digital asset landscape.

Valkyrie’s move to diversify its custody providers comes at a time when security measures in the Bitcoin industry are under heightened scrutiny. By collaborating with Coinbase and BitGo, Valkyrie aims to fortify the protection of its investors’ assets and demonstrate its dedication to maintaining the highest standards of security and reliability.

In confirming the partnership with BitGo, the filing stated that the Trust expects to utilize BitGo’s services to custody a portion of its bitcoin holdings, beginning on or around the date of the report. This strategic decision underscores Valkyrie’s proactive approach to enhancing the security of its ETF assets and ensuring the safety of its investors’ funds.

Overall, Valkyrie’s pioneering move to diversify the custody of its coins marks a significant milestone in the evolution of the Bitcoin ETF landscape. By prioritizing security and reliability through partnerships with leading custodians like BitGo and Coinbase, Valkyrie is setting a new standard for the industry and reinforcing its commitment to protecting the assets of its investors.