Crypto ETF issuer 21Shares diversifies its custodian roster

The investment firm onboards Anchorage Digital Bank and BitGo as partners alongside current custodian Coinbase

article-image

21Shares modified by Blockworks

share

21Shares is adding two partners to safeguard assets for its US bitcoin and ether ETFs.

The crypto ETP issuer has tapped federally chartered Anchorage Digital Bank and digital asset security-focused BitGo to be custodians for the Ark 21Shares Bitcoin ETF (ARKB) and the 21Shares Core Ethereum ETF (CETH).

These two companies will join Coinbase, a crypto exchange that acts as a custodian for a majority of the US-listed spot BTC and ETH funds. 

“We consider our custody partners to be crucial to the risk management and operational excellence of our product lineup, and diversification adds to the safety and security of our offering,” 21Shares investment management head Andres Valencia said in a statement. 

Read more: 21Shares exec talks US crypto ETF adoption, where we go from here

As the only digital asset bank with a charter from the Office of the Comptroller of the Currency, Anchorage offers “federally regulated and bankruptcy-remote custody” for crypto-native and traditional asset managers, Anchorage Digital CEO Nathan McCauley told Blockworks. 

Anchorage meets the Securities and Exchange Commission’s definition of a “qualified custodian,” McCauley has said — a term included in the regulator’s February 2023 proposal that would “entrust safekeeping of client assets” to such entities. 

“Our technical differentiators — including offline key storage, low-latency architecture and efficient share creation and redemption — are a major unlock for ETF providers,” he added. 

BitGo CEO Mike Belshe lauded 21Shares’ multi-custodial approach in a statement, adding that his company offers “100% cold storage.”

ARKB, which launched in January, has about $2.5 billion assets under management. Hitting the market more recently in July, CETH manages $9 million in assets.  

The decision to add more custodians for the funds comes after the FBI said in a statement last week that “malicious cyber actors” from North Korea conducted research on targets connected to cryptocurrency ETFs in recent months.

Such actors pose “a persistent threat to organizations with access to large quantities of cryptocurrency-related assets or products,” the agency added.

While most issuers of the spot bitcoin and ether ETFs use Coinbase as a custodian, Fidelity self-custodies and VanEck uses Gemini.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

A wild BearWhale has also been spotted more than 10 years after the original

article-image

Stablecoins haven’t yet gone mainstream, and at least one roadblock can be solved when regulatory clarity is finalized

article-image

Pantera’s Jiang thinks that AI is going to become as important to our everyday lives as the internet is today

article-image

“Every asset manager and bank doing ‘crypto’ is earning insane fees for putting things ‘onchain,'” read a slide from Meltem Demiror’s DAS talk

article-image

The move from the national bank regulator came after increased pressure from Republicans

article-image

Industry leaders at DAS sounded off on the SEC’s approval of solana futures ETFs and how the crypto industry could expand into futures products