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Asset manager 21Shares is adding Anchorage Digital Bank and BitGo as custodians for its spot cryptocurrency exchange-traded funds (ETFs), according to a Sept. 12 announcement.
Anchorage Digital Bank and BitGo will join Coinbase, the existing custodian, in the custody of Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="" target="_self" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) and Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="" target="_self" text="null" title="https://cointelegraph.com/ethereum-price">ETH</a>) for 21Shares’ two United States spot crypto ETFs, ARK 21Shares Bitcoin ETF (ARKB) and 21Shares Core Ethereum ETF (CETH).&nbsp;
“We consider our custody partners to be crucial to the risk management […] of our product lineup, and diversification adds to the safety and security of our offering,” Andres Valencia, 21Shares’s head of investment management, <a data-ct-non-breakable="null" href="https://www.globenewswire.com/news-release/2024/09/12/2945261/0/en/21Shares-Selects-Anchorage-Digital-Bank-and-BitGo-as-Custodians-for-US-Spot-ETP-Product-Lineup.html" rel="nofollow noopener" target="_blank" text="null" title="https://www.globenewswire.com/news-release/2024/09/12/2945261/0/en/21Shares-Selects-Anchorage-Digital-Bank-and-BitGo-as-Custodians-for-US-Spot-ETP-Product-Lineup.html">said</a> in a statement.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/exclusive-fireblocks-granted-new-york-charter-crypto-custody" rel="" target="_self" text="null" title="https://cointelegraph.com/news/exclusive-fireblocks-granted-new-york-charter-crypto-custody">Exclusive: Fireblocks granted New York charter for crypto custody</a>
21Shares is among the first US spot crypto ETF issuers to expand its roster of custodians beyond Coinbase, the primary crypto custodian for virtually all US spot crypto ETFs.&nbsp;
“Think we’ll continue to see issuers diversify custodians in an attempt to minimize single point of failure risk,” Nate Geraci, president of The ETF Store — an investment adviser — said in a <a data-ct-non-breakable="null" href="https://x.com/NateGeraci/status/1834222940763689186" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/NateGeraci/status/1834222940763689186">post</a> on the X platform.
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 <img alt="Anchorage Digital Bank, BitGo join Coinbase to custody 21Shares crypto ETFs" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191e6e7-00fa-7244-a83b-6aba62c7349f">
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 Digital asset custodians often seek a New York trust charter. Source: NYDFS
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Regulated digital asset custodians are proliferating in the US. In August, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/exclusive-fireblocks-granted-new-york-charter-crypto-custody" rel="" target="_self" text="null" title="https://cointelegraph.com/news/exclusive-fireblocks-granted-new-york-charter-crypto-custody">Cointelegraph reported</a> that Fireblocks — best known for its self-custody treasury management products — obtained approval from New York’s financial regulator to custody assets for US clients.&nbsp;
Other institutional crypto companies — including Coinbase Custody Trust, Fidelity Digital Asset Services and PayPal Digital — are also similarly licensed.
Qualified crypto custodians adhere to strict standards for secure crypto storage — including cold-storage wallets and multiparty computation (MPC) for authorizing transactions — and generally insure depositors against exploit risk.
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 <img alt="Anchorage Digital Bank, BitGo join Coinbase to custody 21Shares crypto ETFs" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191e6ea-80ae-7344-b61d-9b9ee913fb96">
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 ARK 21Shares Bitcoin ETF holds almost $2.5 billion in BTC. Source: 21Shares
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The US Securities and Exchange Commission has been cracking down on investment managers who fail to adhere to the custody rule, which establishes guidelines for safeguarding investor funds.&nbsp;
In September, the SEC <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sec-charges-galois-capital-ftx-asset-custody" rel="" target="_self" text="null" title="https://cointelegraph.com/news/sec-charges-galois-capital-ftx-asset-custody">charged fund adviser Galois Capital Management</a> with failing to properly custody client assets, including holding investor funds with the now-defunct cryptocurrency exchange FTX.
Anchorage Digital Bank — a federally chartered bank — aims to provide fund issuers with the “regulatory certainty and security profile they need to streamline access to crypto via a regulated ETP wrapper,” Nathan McCauley, Anchorage Digital Bank’s CEO, said in a statement.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/crypto-is-used-for-payments-in-georgia-not-to-get-rich-tbilisi-crypto-city-guide/" rel="" target="_self" text="null" title="https://cointelegraph.com/magazine/crypto-is-used-for-payments-in-georgia-not-to-get-rich-tbilisi-crypto-city-guide/">Crypto is used for payments in Georgia, not to get rich: Tbilisi Crypto City Guide</a>

Anchorage Digital Bank, BitGo join Coinbase to custody 21Shares crypto ETFs

Cointelegraph

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