Asset manager 21Shares has expanded its custody partnerships for its US spot cryptocurrency ETFs, ARK 21Shares Bitcoin ETF (ARKB) and 21Shares Core Ethereum ETF (CETH), by adding Anchorage Digital Bank and BitGo alongside Coinbase. This move aims to enhance risk management and security, as the SEC intensifies scrutiny on investment managers regarding custody compliance. Anchorage Digital Bank’s CEO emphasized the importance of regulatory certainty for fund issuers in accessing crypto through regulated products.
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0 posts last week21Shares Expands Custodian Partnerships to Enhance Crypto ETF Security
21Shares has diversified its custodial partnerships by adding Anchorage Digital Bank and BitGo for its spot crypto ETFs, including the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF. This decision, prompted by recent North Korean hacking threats, aims to mitigate ‘single-point failure risk’ associated with relying solely on Coinbase, which currently serves as the primary custodian for most US spot crypto ETFs. Industry experts predict that more issuers will follow suit to enhance security and reduce custodial costs.
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