Valkyrie Selects BitGo as Second Custodian for Bitcoin ETF

Valkyrie, one of the providers of spot Bitcoin exchange-traded funds (ETF) in the US, has appointed BitGo as its second custodian for its Bitcoin Fund, BRRR. Valkyrie is diversifying the custody of its coins by leveraging BitGo's expertise alongside Coinbase.

This collaboration is pivotal in cryptocurrency investments, emphasizing the industry's commitment to risk mitigation strategies. The partnership with BitGo aligns with regulatory requirements in the US and globally, setting a benchmark for spot Bitcoin ETF security.

Bitcoin ETF Adoption

Mike Belshe, the CEO of BitGo, mentioned: "Valkyrie Investments has already made a name for itself, providing investors with funds to tap into the digital asset space. Earlier this year, they took a new step forward with their newest ETF to help investors around the world get access to Bitcoin. It's a privilege to be their custodian to support their product."

BitGo facilitates approximately 20% of all on-chain Bitcoin transactions by value and supports over 700 digital assets within its platform, according to the company's data. Meanwhile, Valkyrie Funds combines blockchain technology with investments across traditional markets.

Last month, the SEC made a historic move by approving applications for 11 spot Bitcoin ETFs, allowing them to be listed on US stock exchanges.

Shift in Crypto Landscape

The SEC's Chair, Gary Gensler, emphasized that the approval does not signal a broad acceptance of all crypto assets, highlighting the regulator's stance on non-compliant market participants. This approval marked a milestone in the evolution of crypto assets within traditional financial frameworks.

BlackRock's IBIT and ProShares' BITO have become the first Bitcoin ETFs to surpass the trading volume of Grayscale's GBTC. While GBTC has historically led the pack in Bitcoin ETF volumes, the emergence of IBIT and BITO signals a change in investors' sentiment and trading behavior, Coindesk reported.

BlackRock's IBIT and ProShares' BITO made waves in the cryptocurrency space by outpacing GBTC's trading volumes on Thursday. IBIT concluded the day with $306 million in trades, closely followed by BITO at $298 million. Meanwhile, GBTC lagged with $291 million in trades.

Recently, there has been a notable decline in Grayscale's GBTC volumes as investors sought alternative options from BlackRock and ProShares. This trend has been exacerbated by selling pressure, with GBTC investors capitalizing on profits and diversifying their portfolios across different providers.