Valkyrie’s Dual-custody Approach for Bitcoin ETF Security

• Valkyrie pioneers with BitGo and Coinbase for unmatched Bitcoin ETF security, marking a first in dual-custody asset safeguarding.
• Dual-custody strategy by Valkyrie underscores the growing emphasis on robust security measures in the digital asset management sphere.
• The innovative approach by Valkyrie, using both BitGo and Coinbase, paves the way for enhanced safety standards in cryptocurrency investments.

Digital asset management pioneer Valkyrie has made headlines by becoming the first entity to deploy a dual-custody approach for its spot Bitcoin Exchange-Traded Fund (ETF). This move involves leading custodians BitGo and Coinbase, enhancing the fund’s security and reliability. 

Dated February 1, 2024, a recent Securities and Exchange Commission (SEC) filing sheds light on Valkyrie’s commitment to bolster the safeguarding mechanisms for its investors’ assets.

The collaboration marks a significant step towards optimizing asset safety, with Valkyrie previously entrusting Coinbase alone with its holdings. The introduction of BitGo into the fold on January 17, 2024, underlines Valkyrie’s dedication to employing multiple layers of protection for its Bitcoin ETF. This custodial services agreement with BitGo, a South Dakota trust company, aims to ensure the utmost security for the trust’s Bitcoin assets.

Moreover, this arrangement does not affect Valkyrie’s ongoing partnership with Coinbase. The firm plans to leverage the expertise of both BitGo and Coinbase, demonstrating a robust approach to asset custody. By distributing its Bitcoin holdings between these two reputable providers, Valkyrie sets a new standard for the industry, underscoring the importance of diversified custodial strategies.

Additionally, this innovative custody solution enhances the security of Valkyrie’s ETF and paves the way for other market participants to consider similar measures. The move reflects a growing awareness and response to the critical need for comprehensive security measures in the digital asset space. Valkyrie’s decision is crucial, as the industry focuses more intently on safeguarding investor assets against changing security challenges.

The firm’s expectation to begin utilizing BitGo’s custodial services from the date of the report indicates a swift implementation of this strategic enhancement. Valkyrie’s proactive stance on security, through the engagement of two leading custodians, signifies a forward-thinking approach to asset management in the digital era.