21Shares Partners with Custodians to Strengthen ETP Security
21Shares Strengthens ETF Security with New Custodian Partnerships
In an exciting development for cryptocurrency investors, 21Shares US LLC, an affiliate of 21Shares AG, has announced strategic partnerships with Anchorage Digital Bank N.A. and BitGo. This decision solidifies the security framework for their U.S. spot exchange-traded products (ETPs), including the ARK 21Shares Bitcoin ETF (ARKB) and the 21Shares Core Ethereum ETF (CETH).
Enhancing ETP Operations
With Coinbase already serving as a custodian, the addition of Anchorage Digital Bank and BitGo marks a significant enhancement in 21Shares’ operational capabilities. These partnerships have been formed based on each custodian's impressive records in maintaining regulatory compliance, safety, and security in the cryptocurrency space.
Vision from 21Shares
According to Andres Valencia, Head of Investment Management at 21Shares, the collaboration with Anchorage and BitGo is essential for the risk management and operational excellence of their products. Valencia emphasizes the importance of diversifying custodial partnerships to bolster both the security and reliability of offerings like ARKB and CETH.
Commitment from Anchorage Digital Bank
Nathan McCauley, Co-Founder and CEO of Anchorage Digital Bank, expressed enthusiasm for the role Anchorage will play in supporting ETPs. With a federally chartered bank status, Anchorage is uniquely positioned to provide a robust regulatory framework for cryptocurrency custody. McCauley’s vision aligns with a broader goal of making cryptocurrency an integral part of diverse investment portfolios.
BitGo’s Role in Custodianship
BitGo's CEO, Mike Belshe, noted their excitement in partnering with 21Shares under a multi-custodial framework. BitGo has established itself as a reputable player in digital asset custody, offering 100% cold storage solutions, which is paramount for safeguarding assets.
Details on the ETP Launches
The ARK 21Shares Bitcoin ETF (ARKB), which began operations earlier this year, provides exposure to bitcoin, a leading digital currency. Similarly, the CETH, launched later in 2024, aims to track the performance of Ether (ETH), known as the second-largest cryptocurrency by market capitalization.
Integrating Chainlink Proof of Reserve
In a move to enhance transparency, 21Shares has integrated Chainlink Proof of Reserve technology for both ARKB and CETH. This innovative approach sheds light on the underlying reserves backing these ETPs, reassuring investors regarding the safety and transparency of their investments.
More About 21Shares, Anchorage, and BitGo
21Shares continues to be at the forefront of cryptocurrency ETPs, providing broader access to crypto assets through efficient operational strategies. Their continued commitment to security reflects in their choice of custodians as they navigate a challenging regulatory environment.
Anchorage Digital is recognized as a pioneering crypto platform, focusing on institutional needs, such as custody, staking, trading, and governance. With a valuation exceeding $3 billion, Anchorage has cemented its reputation as a leader in security and compliance.
During its decade-long experience, BitGo has emerged as a trusted provider of digital asset solutions, securing a significant portion of on-chain Bitcoin transactions and maintaining a role as the largest independent custodian globally.
Frequently Asked Questions
What are the main products of 21Shares?
21Shares primarily offers ARK 21Shares Bitcoin ETF (ARKB) and 21Shares Core Ethereum ETF (CETH), which provide exposure to Bitcoin and Ethereum respectively.
Who are the custodians for 21Shares’ ETPs?
The custodians for 21Shares’ ETPs include Anchorage Digital Bank and BitGo, alongside the existing custodian Coinbase.
What is the significance of the Chainlink Proof of Reserve?
The Chainlink Proof of Reserve integration enhances transparency regarding the reserves backing the ARKB and CETH, ensuring investors are informed about the underlying asset safety.
How does Anchorage Digital Bank set itself apart?
Anchorage Digital Bank is the only federally chartered crypto bank, allowing it to provide a robust regulatory foundation for cryptocurrency custody, unlike many others operating only at the state level.
What role does BitGo play in cryptocurrency custody?
BitGo offers leading digital asset solutions focused on security, including 100% cold storage, and has secured a notable share of on-chain Bitcoin transactions, reaffirming its status as a trusted partner in the cryptocurrency space.
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