Anchorage Digital Bank to Provide Custody for New Crypto ETFs

Anchorage Digital Bank, a federally chartered crypto bank, has announced it will offer 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 CEO Nathan McCauley in a press release.

The bank stated that issuers and participants will be required to utilize biometric authentication for cryptocurrency ETF transactions to reduce the chance of human error. Additional technological enhancements include offline private key storage, low-latency architecture, and efficient creation and redemption processes for ETF shares.

Anchorage emphasized that it offers protective custody, ensuring client funds are separated and secured from the bank's own funds, fulfilling a legal obligation to segregate them.

> “As institutional adoption of crypto increases, crypto ETFs are becoming a critical bridge between traditional finance and the digital asset ecosystem,” Anchorage stated. They emphasized that their selection as a custodian for ARKB and CETH reflects the rising demand for a secure market structure that safeguards shareholders.

Founded in 2017, Anchorage Digital held over $50 billion in assets under custody as of April this year, according to Forbes. The bank is backed by major investors including Goldman Sachs, Andreessen Horowitz, KKR, and Visa, with a Series D valuation exceeding $3 billion.

Currently, the ARK 21Shares Bitcoin ETF manages $2.47 billion in net assets, while the 21Shares Core Ethereum ETF has total assets of $8.88 million, according to data from SoSoValue.