Bitcoin ETFs Take Off After SEC Approval, Raising Custody and Concentration Questions
-
Spot bitcoin ETFs launched in January after SEC approval, bringing institutional investments but also new challenges like security and custody.
-
Bitcoin custody is more complex than traditional asset custody, requiring tight security like cold wallets and multi-party approvals.
-
Qualified crypto custodians like Coinbase adhere to strict standards and oversight compared to regular tech providers.
-
Coinbase acts as the custodian for 8 of the new bitcoin ETFs, raising concentration risk concerns though diversification has tradeoffs.
-
Bitcoin ETF assets top $30B just over a month after launch, surpassing silver ETFs, as bitcoin price breached $50k for the first time since 2021.