Anchorage Digital Bank Announces Custody Services for New Ethereum and Bitcoin ETFs

Anchorage Digital Bank, a federally chartered crypto bank, has announced its provision of custody services for two new U.S. spot cryptocurrency exchange-traded funds (ETFs) issued by 21Shares: the ARK 21Shares Bitcoin ETF (ARKB) and the 21Shares Core Ethereum ETF (CETH).

“Our federal charter — which supersedes state-by-state regulation and positions us as a qualified custodian — makes us a natural choice for ETF custody diversification,” said Anchorage Digital CEO Nathan McCauley in a press release.

To mitigate the risk of human error, the crypto bank will mandate issuers and participants to utilize biometric authentication for engaging in crypto ETFs. Other technological advancements include the offline storage of private keys, low-latency architecture, and efficient creation and redemption of ETF shares, according to Anchorage.

The company highlighted its commitment to custody that separates and protects client funds, stating it is legally required to segregate client assets from its own.

As institutional adoption of cryptocurrency increases, Anchorage Digital emphasizes that crypto ETFs serve as a vital link between traditional finance and the digital asset ecosystem. Their selection as the custodian for ARKB and CETH reflects the growing demand for secure market structures that protect shareholders.

Established in 2017, Anchorage Digital held over $50 billion in assets under custody as of April this year, according to Forbes. The bank has backing from notable investors such as Goldman Sachs, Andreessen Horowitz, KKR, and Visa, with a Series D valuation of over $3 billion.

As of now, the ARK 21Shares Bitcoin ETF holds $2.47 billion in net assets, while the 21Shares Core Ethereum ETF has accumulated $8.88 million, according to data from SoSoValue.