Digital asset investment company,valkyriehas become the first spot bitcoin exchange-traded fund (ETF) to diversify custody of its coins, according to a recent Securities and Exchange Commission (SEC) presentation. In a bid to improve security and reliability, Valkyrie is now working with leading escrow provider BitGo, in addition to Coinbase, to safeguard its funds.
The filing, dated February 1, 2024, is an attempt by Valkyrie to strengthen the security infrastructure of its bitcoin spot ETF by engaging multiple custody providers. The collaboration with BitGo aims to optimize the security of your bitcoins by diversifying funds previously held on Coinbase.
“On January 17, 2024, Valkyrie bitcoin Fund (the “Trust”) and BitGo Trust Company, Inc. (“BitGo”), a South Dakota trust company duly organized and incorporated under the South Dakota Banking Law , entered into a custody services agreement. Agreement,” the document reads. “Pursuant to the Agreement, BitGo will provide services related to the custody and safekeeping of the Trust’s bitcoin holdings.”
By diversifying custody providers, the company not only strengthens the security of its ETF assets but also sets a precedent for other bitcoin ETF issuers seeking to protect their clients' funds.
“The Trust's existing custody agreement with Coinbase Trust Company, LLC (“Coinbase”) is not affected by the execution of the Agreement,” the document continued. “The Sponsor plans to use the custody services of Coinbase and BitGo to custody the Trust's bitcoins.”
Valkyrie's decision to diversify its assets comes at a time of increased attention to security measures within the bitcoin industry. By working with Coinbase and BitGo, reputable entities known for their proven expertise in bitcoin custody, Valkyrie hopes to strengthen the protection of its investors' assets.
“The Sponsor expects to use the services of BitGo to custody a portion of the Trust's bitcoins on or around the date of this report,” the document confirmed.
