Valkyrie Selects BitGo as Second Custodian for Bitcoin ETF

<p>Valkyrie, one of the providers of spot bitcoin
exchange-traded funds (ETFs) 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.</p><p>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.</p><p>Bitcoin ETF Adoption </p><p>Mike Belshe, the CEO of <a href="" target="_blank" rel="follow">BitGo</a>, 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 <a href="">Bitcoin</a>. It's a privilege to be their custodian to support
their product."</p><p>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
<a href="">blockchain</a> technology with investments across traditional markets.</p><p>Last month, the SEC made a historic move by
approving applications for 11 <a href="" target="_blank" rel="follow">spot Bitcoin ETFs</a>,
allowing them to be listed on US stock exchanges.</p><p>Shift in Crypto Landscape</p><p>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.</p><p><a href="" target="_blank" rel="follow">BlackRock's IBIT</a> 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.</p><p>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. </p><p>Grayscale has long topped spot Bitcoin ETF trading
volumes. However, recent weeks have seen a notable decline as investors have
sought alternative options from BlackRock and ProShares. This trend has been
further exacerbated by selling pressure, with GBTC investors capitalizing on
profits and diversifying their portfolios across different providers.</p>

This article was written by Jared Kirui at

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