Valkyrie, a leading provider of spot Bitcoin exchange-traded funds (ETFs) in the United States, has taken a significant step in enhancing the security and regulatory compliance of its Bitcoin Fund (BRRR).
They have appointed BitGo as their second custodian, alongside Coinbase, to diversify their coin custody strategy.
This collaboration between Valkyrie and BitGo marks a crucial development in the cryptocurrency investment landscape, emphasizing the industry’s dedication to risk mitigation.
By partnering with BitGo, Valkyrie aims to align with regulatory requirements in both the US and global markets, effectively setting a new security standard for spot Bitcoin ETFs.
BitGo, led by CEO Mike Belshe, is a major player in the cryptocurrency space, facilitating approximately 20% of all on-chain Bitcoin transactions by value.
They offer support for over 700 digital assets within their platform.
Valkyrie Funds, on the other hand, leverages blockchain technology to bridge the gap between traditional markets and digital assets, offering investors innovative opportunities.
The US Securities and Exchange Commission (SEC) recently made a historic decision by approving applications for 11 spot Bitcoin ETFs, allowing them to be listed on US stock exchanges.
This marked a significant milestone in the integration of crypto assets into traditional financial frameworks. However, the SEC’s Chair,
Gary Gensler, emphasized that this approval doesn’t signify a blanket endorsement of all crypto assets, underlining the regulator’s commitment to maintaining compliance standards in the market.
In this evolving landscape, BlackRock’s IBIT and ProShares’ BITO have emerged as the frontrunners among Bitcoin ETFs, surpassing the trading volume of Grayscale’s GBTC.
Traditionally, GBTC had dominated the Bitcoin ETF market, but the rise of IBIT and BITO reflects a shift in investor sentiment and trading behavior.
On a recent trading day, IBIT recorded an impressive $306 million in trades, closely followed by BITO with $298 million. In contrast, GBTC lagged behind with $291 million in trades.
This trend indicates a notable decline in Grayscale’s GBTC volumes as investors seek alternative options from BlackRock and ProShares.
Additionally, selling pressure has driven GBTC investors to capitalize on profits and diversify their portfolios across different providers.
In conclusion, Valkyrie’s partnership with BitGo signifies a commitment to strengthening the security of their Bitcoin Fund, aligning with regulatory standards.
The recent approval of spot Bitcoin ETFs by the SEC has transformed the landscape, with BlackRock’s IBIT and ProShares’ BITO gaining prominence over Grayscale’s GBTC, symbolizing a shift in investor preferences within the crypto market.