Valkyrie diversified its coin storage and became the first Bitcoin ETF using Coinbase and BitGo.
Digital asset investment firm Valkyrie has become the first Bitcoin exchange-traded fund (ETF) to diversify its holdings of the coin, according to a recent filing with the Securities and Exchange Commission (SEC). In an effort to enhance security and reliability, Valkyrie is now collaborating with leading custodial service provider BitGo, in addition to Coinbase, already to protect your funds.
The February 1, 2024 filing is Valkyrie’s attempt to strengthen the security infrastructure of its spot Bitcoin ETF by involving multiple custody service providers. The collaboration with BitGo aims to optimize the safety of Bitcoin by diversifying funds previously held on Coinbase.
“On January 17, 2024, the Valkyrie Bitcoin Fund (the “Trust”) and BitGo Trust Company, Inc. (“BitGo”), a South Dakota trust company duly organized and chartered under the South Dakota Banking Act, entered into a Custody Services Agreement. “I did. It was agreed upon,” it was stated in the document. “Under the agreement, BitGo will provide services related to the custody and safekeeping of the Trust’s Bitcoin holdings.”
By diversifying its custody providers, the company not only enhances the security of ETF assets, but also sets a precedent for other Bitcoin ETF issuers seeking to protect customer funds.
“The Trust’s existing custody agreement with Coinbase Trust Company, LLC (“Coinbase”) is not affected by the entering into the agreement,” the filing continued. “We expect that sponsors will utilize the custody services of Coinbase and BitGo to store the Trust’s bitcoins.”
Valkyrie’s decision to diversify its assets comes at a time of increasing focus on security measures within the Bitcoin industry. Valkyrie hopes to enhance investor asset protection by collaborating with Coinbase and BitGo, well-known companies known for their proven expertise in storing Bitcoin.
“The Patron anticipates utilizing BitGo’s services to hold a portion of the Trust’s Bitcoins on or about the date of this report,” the filing confirmed.
