Valkyrie spreads risk, diversifies custody for its BRRR Bitcoin ETF between BitGo and Coinbase

• Valkyrie has become the first issuer to diversify custody services for its BTC ETF.
• Coinbase and BitGo will custody the BRRR henceforth as counterparts stick to singular custodial services.
• The move could inspire confidence among investors by reducing custodial risk.

Valkyrie Fund has taken a different approach to bolster its position in the spot Bitcoin exchange-traded fund (ETF) market. While market peers such as Bitwise, VanEck, and Hashdex focus on commercials, the firm has opted to reassure customers with reduced custodian risk.

Also Read: BlackRock, Franklin Templeton, VanEck among issuers advertising spot BTC ETF on Google

Valkyrie chooses different path in BTC ETF marketing wars

Valkyrie Bitcoin Fund (BRRR) will henceforth be custodied by both BitGo and Coinbase, a paradigm shift from what other players in the spot Bitcoin ETF market are doing.

It comes after a Thursday filing, with the firm revealing the move, noting that BitGo will be providing custody and safekeeping services for the trust’s BTC holdings. Among other benefits, the move will help boost investor confidence as it points to reduced custodial risk, with two entities handling safekeeping.

As indicated, this is a paradigm shift, considering Valkyrie’s peers in the ETF market have singular custodians. Coinbase was recorded as the leading custodian for eight out of the 11 (8/11) applications, with VanEck, Fidelity, and Hashdex choosing otherwise. With the latest development, Valkyrie joins Hashdex, which also has BitGo as its custodian alongside Coinbase.

Spot BTC ETF issuers and custodians

ETFStore founder Nate Geraci anticipates more diversity in custodial services soon, saying, “I would be surprised if most of them do not have multiple custodians over the next quarter.”

The predominance of Coinbase as a primary custodian comes on the back of its helm as the largest US-based exchange.  

Meanwhile, reports indicate that while all of the new ETFs are doing well, four have managed to outdo themselves. These are BlackRock (IBIT), Fidelity (FBTC), Ark/21Shares (ARKB), and Bitwise (BITB).

With BlackRock in the lead, the fund manager has since taken its spot BTC ETF product on Wall Street, projecting its ETF product on the wall.

As reported, issuers are already showcasing their offerings on Google, with BlackRock, Fidelity, Franklin Templeton, and VanEck among issuers advertising spot BTC ETF on the giant search engine.