21Shares Enhances ETF Security with New Custodian Partnerships
In a significant move for cryptocurrency investors, 21Shares US LLC, part of 21Shares AG, has announced new partnerships with Anchorage Digital Bank N.A. and BitGo. This step reinforces the security measures for their U.S. spot exchange-traded products (ETPs), which include the ARK 21Shares Bitcoin ETF (ARKB) and the 21Shares Core Ethereum ETF (CETH).
Improving ETP Operations
With Coinbase already on board as custodian, the addition of Anchorage Digital Bank and BitGo represents a major upgrade in 21Shares’ operational capabilities. These partnerships were established due to each custodian's exemplary track record in adhering to regulatory standards, safety, and security within the cryptocurrency realm.
Insights from 21Shares
Andres Valencia, Head of Investment Management at 21Shares, stated that collaborating with Anchorage and BitGo is crucial for effectively managing risks and achieving operational excellence in their offerings. Valencia highlighted the need to diversify custodial partnerships, which further strengthens the security and dependability of products like ARKB and CETH.
Commitment from Anchorage Digital Bank
Nathan McCauley, Co-Founder and CEO of Anchorage Digital Bank, expressed excitement about Anchorage's role in supporting ETPs. As a federally chartered bank, Anchorage is uniquely equipped to deliver a solid regulatory framework for cryptocurrency custody. McCauley’s vision supports broader efforts to incorporate cryptocurrency into diverse investment portfolios.
BitGo’s Contribution to Custodianship
Mike Belshe, CEO of BitGo, shared his enthusiasm for partnering with 21Shares through a multi-custodial model. BitGo has positioned itself as a reputable leader in the digital asset custody space, known for providing 100% cold storage solutions, which are vital for protecting assets.
Details on the ETP Launches
The ARK 21Shares Bitcoin ETF (ARKB), which launched earlier this year, offers exposure to Bitcoin, a prominent digital currency. In a similar vein, the CETH, expected to debut later in 2024, aims to track the performance of Ether (ETH), recognized as the second-largest cryptocurrency by market cap.
Integrating Chainlink Proof of Reserve
To boost transparency, 21Shares has incorporated Chainlink Proof of Reserve technology for both ARKB and CETH. This forward-thinking approach illuminates the underlying reserves securing these ETPs, providing reassurance to investors about the safety and transparency of their funds.
More About 21Shares, Anchorage, and BitGo
21Shares is leading the charge for cryptocurrency ETPs, offering greater access to crypto assets through effective operational strategies. Their ongoing commitment to security is reflected in their selection of custodians as they navigate a complex regulatory landscape.
Anchorage Digital is recognized as an innovative crypto platform tailored to institutional needs, which include custody, staking, trading, and governance. With a valuation over $3 billion, Anchorage has established itself as a leader in security and compliance.
With ten years of experience, BitGo has become a trusted provider of digital asset solutions, safeguarding a significant portion of on-chain Bitcoin transactions and maintaining its status as the largest independent custodian in the world.
Frequently Asked Questions
What are the main products offered by 21Shares?
21Shares primarily provides the ARK 21Shares Bitcoin ETF (ARKB) and the 21Shares Core Ethereum ETF (CETH), which give investors exposure to Bitcoin and Ethereum, respectively.
Who are the custodians handling 21Shares’ ETPs?
The custodians managing 21Shares’ ETPs include Anchorage Digital Bank and BitGo, in addition to the existing custodian, Coinbase.
What does the Chainlink Proof of Reserve integration mean?
The integration of Chainlink Proof of Reserve enhances transparency about the reserves backing both ARKB and CETH, ensuring that investors are well-informed about the safety of their underlying assets.
How does Anchorage Digital Bank distinguish itself?
Anchorage Digital Bank stands out as the only federally chartered crypto bank, which allows it to provide a strong regulatory foundation for cryptocurrency custody, unlike many other businesses that only operate at the state level.
What is BitGo’s role in the custody of cryptocurrency?
BitGo delivers leading digital asset solutions with a focus on security, including 100% cold storage. The company has secured a significant share of on-chain Bitcoin transactions, reinforcing its position as a trusted partner in the cryptocurrency space.
