3 days ago
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21Shares, a top issuer of cryptocurrency exchange-traded products (ETPs), has teamed up with Zodia Custody to offer advanced custody services for its physically-backed digital asset ETPs in Switzerland and the wider European market.
The partnership between 21Shares and Zodia Custody is designed to meet the increasing demand for secure and compliant digital asset investments. Zodia Custody, backed by Standard Chartered, SBI Holdings, Northern Trust, and National Australia Bank, is known for its stringent security measures and robust custodial services.
Institutions investing in 21Shares’ ETPs will benefit from Zodia’s advanced cold-storage wallets, which offer secure and instant access to digital assets. Julian Sawyer, CEO of Zodia Custody, emphasized that the partnership aims to deliver significant benefits to the entire ecosystem of digital asset investments, ensuring that institutional investors have access to top-tier security and compliance solutions.
Established in 2020 by Standard Chartered and Northern Trust, Zodia Custody has secured $44 million from five investors, according to PitchBook data. The partnership announcement follows Zodia Custody’s recent funding from NAB Ventures, the venture capital arm of Australia’s National Australia Bank (NAB).
In addition to Zodia, 21Shares also utilizes custodian services from other providers. The firm’s website indicates reliance on Coinbase Custody and Copper, a British crypto custodian founded in 2018 by Dmitry Tokarev, though it’s not yet clear whether it will continue using all the custody providers.
Rising Institutional Interest in ETPs
More and more institutional investors are showing interest in Exchange-Traded Products (ETPs) backed by digital assets. According to 21Shares, nearly 1,000 professional investors together hold about $11 billion in US Bitcoin exchange-traded funds (ETFs). This makes up roughly 20% of all ETF assets. In comparison, gold ETFs had only 95 investors in their first quarter after launch, making up less than 10% of Bitcoin ETFs.
The growing interest from institutions shows their rising acceptance of digital assets as solid investment options. Institutions are attracted to the transparency, ease of buying and selling, and potential for profits that ETPs offer. They see digital assets as a valuable part of their investment strategy for the future. This trend is pushing companies like 21Shares to develop more diverse and secure digital asset products to meet the increasing demand from institutional investors worldwide, as demonstrated by this new partnership.
Although the past week witnessed significant outflows from digital asset investment products, market sentiment remains optimistic about potential corrections. Anticipation is also high for the approval of Ethereum ETFs, following recent updated filings by prominent issuers.
