Bitcoin ETF

Bitcoin

BlackRock

Valkyrie is the first spot Bitcoin ETF issuer to leverage two separate crypto custodians for its fund, thanks to its deal with BitGo.
BitGo will provide custodial services for Valkyrie’s Bitcoin Fund (BRRR), safekeeping and storing a portion of the underlying Bitcoin (<a href="https://crypto.news/price/bitcoin/" rel="noopener noreferrer nofollow">BTC</a>) in the firm’s exchange-traded product. Valkyrie and BitGo reached the agreement on Jan. 17 but only <a href="https://www.sec.gov/Archives/edgar/data/1841175/000199937124001339/brrr-8k_020124.htm" target="_blank" rel="noopener noreferrer nofollow">filed</a> with the U.S. Securities and Exchange Commission (SEC) on Feb. 1.
The strategy diversifies Valkyrie’s spot BTC ETF by splitting the risk across multiple crypto custodians, reducing single failure points, and bolstering the fund’s safety. Other issuers may eventually chart similar courses amid competition among asset managers.
You might also like: <a href="https://crypto.news/bitcoin-etfs-surge-with-247m-inflow-as-btc-nears-44k-again/" rel="noopener noreferrer nofollow"> Bitcoin ETFs surge with $247m inflow as BTC nears $44k again </a>
Issuers raced to capture market participants and investors before and after the SEC approved spot Bitcoin ETFs on Jan. 10. Fees were a major talking point with these funds. Some issuers even <a href="https://crypto.news/blackrock-races-to-the-bottom-with-new-bitcoin-etf-fee/" target="_blank" rel="noopener noreferrer nofollow">offered</a> fee waivers for up to six months.
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 Still some after hours trading left but looks like BlackRock's <a href="https://twitter.com/search?q=%24IBIT&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$IBIT</a> is the first ETF to trade more than Grayscale's <a href="https://twitter.com/search?q=%24GBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$GBTC</a> in a single day. Total trading today was kind of a dud though at $924 million — first day below $1 billion in dollar volume for the group since launch. <a href="https://t.co/IeIF2COm4F" target="_blank" rel="noopener noreferrer nofollow">https://t.co/IeIF2COm4F</a> <a href="https://t.co/ZtADLBQP63" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/ZtADLBQP63</a>— James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1753165420482244632?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">February 1, 2024</a>
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Initially, Valkyrie <a href="https://crypto.news/spot-bitcoin-etf-issuers-amendments-fees/" target="_blank" rel="noopener noreferrer nofollow">boasted</a> one of the highest fees at 0.8%, but the issuer rolled back its charge to 0.25% with BlackRock and Fidelity. However, the Valkyrie Bitcoin ETF has recorded far lower trading volume than the Wall Street heavyweights.&nbsp;
BlackRock became the first fund to out-trade Grayscale’s GBTC following billions of outflows from the mammoth fund over two weeks.
Read more: <a href="https://crypto.news/google-ends-five-year-ban-on-crypto-ads-as-bitcoin-etf-ads-pop-up/" rel="noopener noreferrer nofollow"> Google ends five-year ban on crypto ads as Bitcoin ETF becomes visible </a>

Valkyrie diversifies spot Bitcoin ETF custody with BitGo

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