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.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.
Related Articles
- Current Trends in Greece Stock Market and Commodities Overview
- Gains in Key Sectors Drive Israeli Stocks Higher Today
- ServiceNow's Vision to Lead the Enterprise Software Market
- Norway Stock Market Gains Lead by Healthcare and Utilities Sectors
- Wolfe Research Predicts Continued Bearish Trends for Crypto Market
- Forecast: Radiopharmaceuticals Market to Reach $13.67B by 2033
- Market Insights on Key Stocks for Today's Trading Session
- Projected Growth of Australia Office Furniture Market to $1.44B
- Vishay Intertechnology Enhances Inductor Line for Customers
- Exploring ON Semiconductor's Competitive Landscape in the Industry
Recent Articles
- NRD Companies Show Steady Growth in 2024 H1 Financials
- AirMiners' Kiloton Fund: Paving the Way for Climate Innovation
- Oncternal Therapeutics Shifts Focus After Clinical Study Termination
- El Pollo Loco Celebrates with Exciting Offers for Guacamole Day
- Nonco Partners with CoinDesk Indices for Digital Asset Innovation
- Hapbee Enhances Wellness Access with Target Store Launch
- Ethernet Switch and Router Markets Show Diverse Trends in Q2 2024
- Verizon Business Innovates Content Distribution at IBC2024
- Scilex Holding Company Achieves Prestigious Drug Accreditation
- Reltio and Databricks Team Up to Revolutionize Data Utilization
- Grayscale Investments Unveils Innovative XRP Trust for Investors
- Verdantas Welcomes Aegis Environmental to Grow Expertise
- HeartSciences Secures $1.9 Million Non-Dilutive Financing
- Summit State Bank Announces Reduction in Quarterly Dividend
- Majesco Unveils Innovative AI Ecosystem with Strategic Partners
- Edible Garden Expands USDA Organic Herb Line in New Markets
- Innovid Enhances Advertising with New QR Code Integration
- Backblaze Expands Leadership with New Sales Team Members
- Sage Therapeutics Faces Investigation: What Investors Need to Know
- Supporting Veterans: Mortgage-Free Homes by Meritage Homes
- Lenovo Launches Affordable AI Solutions for All Businesses
- FERN Group Seals Success with EUR 8 Million Bond Offering
- Numerated Partners with Quantum Financial to Boost Lending Options
- SAP and WalkMe Join Forces: A New Era of Digital Adoption
- ROH Empowers DoubleTree Orlando in Enhancing Operations
- Equitable Launches Innovative Retirement Solution for Educators
- Columbia Threadneedle Expands ETF Offerings for Investors
- DoiT Strengthens Leadership with Steve Mills as CRO
- Zeta Global's Star-Studded Conference to Explore AI's Future
- Communitech Fast Track Cities Welcomes Tech Solutions for Cities
- Haberfeld Expands into Healthcare with New Leadership
- Tottenham Hotspur Partners with Ant International for Payments
- Billy Downs Takes the Helm as President of Ford's Garage
- Mastercard Strengthens Cybersecurity with Major Recorded Future Acquisition
- Virtualitics Partners with U.S. Air Force for Enhanced Readiness
- Madelyn Cline Joins Reign Storm as Brand Ambassador
- Exploring Patient Lifestyle Challenges in Cardiology Treatment
- OtterBox Unveils Stylish iPhone 16 Cases with Camera Control
- NCCN Expands Access to Cancer Resources in Multiple Languages
- Haymaker Group Enhances Presence in Tech's Heartland
- Clarity Pharmaceuticals Updates SECuRE Trial Progress with Results
- MingZhu Logistics Explores New Growth Avenues After Acquisition Halt
- Nikon Unveils New LUTs to Enhance Creative Video Workflows
- Flex Unveils Its 2024 Sustainability Achievements in Report
- Discover the Delicious New Jolly Rancher Ropes Flavor Duo
- Messer Ensures Stable Helium Supply Amid Market Challenges
- MingZhu Logistics Transforms with Acquisition of HOLDCO 36
- Market Response to August PPI Release and Inflation Trends
- Brazil's Lula Targets Higher Income Tax Exemption by 2026
- Saudi Stock Market Sees Gains with Notable Performers