Anchorage Digital and BitGo to Provide Custody Services for ARK 21Shares Bitcoin ETF
Anchorage Digital and BitGo are making waves in the cryptocurrency custody space by stepping in to handle custody services for the ARK 21Shares Bitcoin ETF. This move marks a significant shift in the industry, as they are joining the current provider, Coinbase Inc.
Anchorage Digital, the only federally chartered crypto bank in the U.S., is now servicing one of the leading ETFs in the custody space, which has traditionally been dominated by Coinbase. This partnership highlights the growing importance of secure custody services for digital assets, especially as the demand for cryptocurrency investment products continues to rise.
The ARK 21Shares Bitcoin ETF (ARKB) is one of the top ETFs in terms of inflows, ranking behind only BlackRock and Fidelity’s ETFs. With the backing of companies like Anchorage Digital and BitGo, the ETF is poised to attract even more investors looking to gain exposure to the cryptocurrency market.
21Shares, the issuer behind the ARK 21Shares Bitcoin ETF, expressed excitement about working with Anchorage Digital Bank and BitGo to enhance the security and diversification of their custody services. Andres Valencia, head of investment management at 21Shares, emphasized the importance of having reliable custody partners to ensure the safety and security of their product lineup.
In addition to the ARK 21Shares Bitcoin ETF, Anchorage Digital and BitGo will also provide custody services for the 21Shares Core Ethereum ETF (CETH). This expansion of custody services reflects the growing demand for secure storage solutions for a wide range of digital assets.
Anchorage Digital’s status as a federally chartered crypto bank sets it apart from other custody providers in the industry. This regulatory oversight ensures that the bank adheres to strict standards for asset segregation and security measures, offering investors peace of mind when it comes to the protection of their digital assets.
Nathan McCauley, co-founder and CEO of Anchorage Digital Bank, highlighted the bank’s commitment to broadening access to crypto assets through its custody services. With a federal charter that supersedes state-by-state regulations, Anchorage Digital is well-positioned to serve as a qualified custodian for ETFs like the ARK 21Shares Bitcoin ETF.
The establishment of crypto ETFs has been a game-changer for investors seeking regulated products tied to cryptocurrencies. These products offer a more accessible way to invest in digital assets, with custody services playing a critical role in safeguarding the assets that back these products.
Coinbase has long been a leader in custody services for exchange-traded products in the U.S. However, the entry of Anchorage Digital and BitGo into the custody space signals a new era of competition and innovation in the industry. With a focus on security, diversification, and regulatory compliance, these custodians are poised to set new standards for asset protection in the cryptocurrency market.
As the demand for cryptocurrency investment products continues to grow, the need for secure custody services will only increase. Anchorage Digital and BitGo are leading the way in providing institutional-grade custody solutions for digital assets, setting a new standard for safety and security in the cryptocurrency industry.
Overall, the partnership between Anchorage Digital, BitGo, and 21Shares represents a significant development in the cryptocurrency custody space. By leveraging the expertise and technology of these trusted custodians, investors can have confidence in the safety and security of their digital assets, paving the way for further growth and innovation in the cryptocurrency market.