The post SEC Considers New Custodians for ARK 21shares Bitcoin ETF appeared on BitcoinEthereumNews.com.

The U.S. Securities and Exchange Commission (SEC) recently announced a new consideration for a rule change impacting the ARK 21shares Bitcoin ETF and 21shares Core Ethereum ETF. The proposed amendment will add two new custodians, Anchorage Digital Bank N.A. and Bitgo New York Trust Company LLC, expanding the custodial services beyond the current sole provider, Coinbase Trust Company LLC. According to the SEC filing, the inclusion of these custodians aims to diversify custodial risk by holding the assets in segregated accounts, thus enhancing security and clarity for the respective trusts. This article explores the significant SEC proposal to diversify Bitcoin and Ethereum ETFs custodians, with a detailed look at potential impacts and industry reactions. SEC’s Proposal to Amend ARK 21shares and 21shares Core Ethereum ETFs The U.S. SEC has put forth a proposal soliciting public comments regarding a rule change by Cboe BZX Exchange. The primary focus of this amendment is to introduce two new custodians—Anchorage Digital Bank N.A. and Bitgo New York Trust Company LLC—to the ARK 21shares Bitcoin ETF and 21shares Core Ethereum ETF. Significance of Adding New Custodians Currently, Coinbase Trust Company LLC acts as the sole custodian for both ETFs. The addition of Anchorage and Bitgo is a strategic move aimed at mitigating risks linked to third-party custodial services. By having multiple custodians, the trusts ensure that their assets are securely held and easily identifiable, separate from the custodians’ own assets and those of other clients. Regulatory and Market Implications The SEC’s filing emphasizes that all other provisions for the ETFs remain unchanged, despite the introduction of new custodians. This stability ensures investor confidence while also encouraging feedback from the public before the SEC finalizes its decision. Industry experts suggest that the diversification of custodial services could set a new standard in the regulatory environment, potentially…

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Filed under: News - @ September 19, 2024 11:27 pm