Valkyrie Investments pioneers enhanced security measures for its Bitcoin Fund (BRRR) by collaborating with BitGo as a second custodian alongside Coinbase. The move, disclosed on February 1st, aims to mitigate risks and bolster investor confidence in the wake of increasing competition among asset managers.
BitGo CEO Mike Belshe emphasized the significance of private custody solutions, underlining Valkyrie’s commitment to expanding access to Bitcoin investment opportunities globally.
The strategy, filed with the U.S. Securities and Exchange Commission on Feb. 1, showcases Valkyrie’s proactive approach in diversifying custodial responsibilities, ensuring the safety and integrity of its exchange-traded product. The initiative comes amidst the recent surge in interest surrounding spot Bitcoin ETFs, following regulatory approval by the SEC on January 10th.
While Valkyrie adjusted its fees to 0.25% in alignment with industry standards, its trading volume remains below Wall Street counterparts, notably BlackRock’s iShares Bitcoin Trust.
As the crypto market evolves, Valkyrie’s strategic move sets a precedent for enhancing security protocols within ETF offerings, signaling a maturing landscape for digital asset investment.
