21Shares, a leading issuer of cryptocurrency exchange-traded products (ETPs), has announced a significant enhancement to its services by expanding its partnership with BitGo Holdings, Inc. This collaboration aims to provide improved custody and staking solutions for crypto ETP investors in both the United States and Europe.
Unveiled on Thursday, the agreement builds on the existing relationship between the two firms, enabling 21Shares to utilize BitGo“s institutional-grade infrastructure. This includes both custody and staking services for a wider array of 21Shares” ETP offerings that are currently listed on US and European markets.
As part of this partnership, BitGo will act as a qualified custodian, execution partner, and staking provider. This arrangement is particularly vital for 21Shares as it continues to grow its product lineup and requires robust backend systems to manage its crypto ETPs effectively.
With BitGo“s assistance, 21Shares will enhance the secure storage of digital assets for its exchange-traded funds in the U.S. and its ETPs in Europe. Furthermore, the partnership will introduce increased liquidity and trading support, allowing 21Shares to access electronic markets and over-the-counter trading desks seamlessly. This improvement will help mitigate delays associated with substantial crypto trades.
Utilizing BitGo“s staking services will enable 21Shares to earn staking rewards while ensuring the safety of its assets. This is a critical consideration for institutions that are increasingly looking for reliable and secure avenues to generate profits while maintaining asset safety.
21Shares selected BitGo due to its strong compliance record, high security standards, and diligent governance approach. The expansion of 21Shares” investment platform reflects a growing demand among investors for secure and regulated staking options in the crypto market.
Traditional investors are increasingly entering the cryptocurrency space through regulated products rather than purchasing tokens directly. For 21Shares, which manages over $5 billion in assets and operates numerous ETPs globally, the need for enhanced infrastructure is paramount.
This trend aligns with a broader movement within the institutional sector, where there is a heightened interest in staking rewards. This approach allows investors to profit by supporting proof-of-stake networks, all while adhering to regulatory frameworks that ensure asset security and strong custody standards.
Other notable examples include Coinbase, which has partnered with Figment to expand its custody-based staking services, and Anchorage Digital, which has integrated staking options through its regulated entities. Such developments illustrate the institutional demand for reliable staking access within trusted and regulated environments.
As the landscape for liquid staking continues to evolve, the ability to earn staking rewards while retaining the tradability of assets has attracted significant interest. More institutions are exploring these innovative models, which are becoming deeply embedded within the financial system.
The enhanced collaboration between BitGo and 21Shares serves as a prime illustration of how crypto-based investment products are advancing toward greater regulation. The next step in this evolution will likely involve offering staking rewards alongside secure storage solutions within robust, institutional-grade frameworks.
The most astute minds in the crypto space are already subscribing to our newsletter. Don”t miss out—join them today.
