Just how safe is the $51 billion sitting in bitcoin ETFs?
The post Just how safe is the $51 billion sitting in bitcoin ETFs? appeared on BitcoinEthereumNews.com.
Today, enjoy the Empire newsletter on Blockworks.co. Tomorrow, get the news delivered directly to your inbox. Subscribe to the Empire newsletter. Happy Fri-yay! No, but really, we made it through the (short) week. Congrats. Today we’re diving right into custodian safety, and David’s cooked up a few Easter Eggs for you all. Have a great weekend! — Katherine Ross Staying afloat The FBI has a warning for crypto: North Korean hackers are on the prowl. “North Korean malicious cyber actors conducted research on a variety of targets connected to cryptocurrency exchange-traded funds (ETFs) over the last several months. This research included pre-operational preparations suggesting North Korean actors may attempt malicious cyber activities against companies associated with cryptocurrency ETFs or other cryptocurrency-related financial products,” the FBI said earlier this week in a bulletin. On social media, it led to a discussion started by Eleanor Terrett of Fox News on whether or not Coinbase — the custodian of 8 of the 11 bitcoin ETFs (including BlackRock’s) — could be a “single point of failure.” As it stands, all 11 ETFs have over $51 billion worth of bitcoin according to Bitcoin Treasuries, so it’s a fair concern to wonder what could happen if something — or someone — attacks custodians or the issuers themselves. “The world’s largest financial institutions rely on Coinbase for a reason — we have a proven track record, state-of-the-art technology, and deep expertise in crypto custody. Crypto is a unique technology with unique needs,” a Coinbase spokesperson told me. “Coinbase has built its reputation as the most trusted and secure platform for safeguarding digital assets, and operates under the same regulatory frameworks as other major institutions like the DTCC, ensuring that we meet the highest standards of security and oversight. Our commitment to security remains unwavering, and we’re proud to…
Filed under: News - @ September 6, 2024 1:27 pm