The U.S. Securities and Exchange Commission (SEC) is currently reviewing a proposal to add new custodians for Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH) exchange-traded funds (ETFs).
The move comes as part of a broader effort to strengthen the security of these digital asset holdings.
The proposal, submitted by Cboe BZX Exchange, suggests including Anchorage Digital Bank N.A. and Bitgo New York Trust Company LLC as custodians for the ARK 21shares Bitcoin ETF and the 21shares Core Ethereum ETF.
Currently, Coinbase Trust Company LLC serves as the sole custodian for both ETFs.
The proposed change would diversify the custody providers, which the SEC believes could reduce risks related to third-party services.
According to the SEC filing, “The new custodians will each custody the Bitcoin Trust’s bitcoin pursuant to a custody agreement,” ensuring that the assets are held in segregated accounts.
These accounts would be separate from both the custodians’ own assets and those of other clients, clearly identifying the bitcoin trust as the rightful owner.
The inclusion of new custodians such as Anchorage and Bitgo is seen as a step toward better securing digital assets.
The SEC explained that diversification would help mitigate the risks associated with relying on a single custodian.
This proposal aligns with the need to adapt to the rapidly evolving landscape of digital finance, ensuring that the infrastructure supporting ETFs is robust and reliable.
At this stage, the SEC has not approved the rule change and is soliciting feedback from the public before moving forward.
Interested parties are encouraged to provide input, as the commission evaluates the potential impact of adding new custodians to these widely traded ETFs.
At the time of reporting, the Bitcoin price was $62,922.53, while Ethereum's price was $2,454.72.