Trump seeking economic deal with China as fresh trade talks loom- WSJ
In a move to enhance its digital asset custody solutions, iShares Bitcoin Trust ETF (NASDAQ:IBIT), currently valued at $44.82 billion in market capitalization, has entered into a custodial services agreement with Anchorage Digital Bank N.A., a federally chartered digital asset bank. The trust has seen significant price movements recently, with a 25% gain over the past six months, despite an 8% decline in the past week. According to InvestingPro, the ETF maintains an excellent financial health score of 4.21. This agreement, effective as of Monday, complements the existing custody services provided by Coinbase (NASDAQ:COIN) and its affiliates.
The new partnership with Anchorage, announced today, allows for the maintenance of segregated custody accounts, which will be used for the safekeeping and management of the Trust's bitcoin holdings. While the Trust's current holdings with Coinbase remain unchanged, the addition of Anchorage as an additional custodian reflects the Trust's commitment to risk management and growth within the digital asset sector. For deeper insights into IBIT's risk management strategies and comprehensive financial analysis, InvestingPro subscribers gain access to exclusive metrics and expert analysis.
Anchorage is mandated to store all private keys related to the Trust's bitcoin in cold storage, a security measure that keeps the keys offline and less susceptible to hacking. The agreement also addresses protocol forks, granting Anchorage the discretion to support or discontinue support for any branch, with the commitment to make reasonable efforts to maintain support for at least one branch.
The Trust is responsible for indemnifying Anchorage against certain losses, while Anchorage is required to uphold specific insurance coverage standards. This strategic partnership underlines the Trust's proactive approach to security and regulatory compliance in the evolving landscape of cryptocurrency investments. Want to stay ahead of market movements and make informed investment decisions? InvestingPro offers real-time alerts and detailed analysis tools to help you navigate the dynamic crypto ETF market.
The details of this agreement are outlined in the Anchorage Custodian Agreement, filed with the SEC as part of a Form 8-K report. The information in this article is based on the statements from the press release.
In other recent news, Bitcoin and Ether exchange-traded funds (ETFs) have experienced varying investor interest. Bitcoin ETFs saw a significant net outflow of $60.63 million, with Bitwise's BITB leading the withdrawals at $112.65 million, although BlackRock (NYSE:BLK)'s IBIT managed to secure an inflow of $68.44 million. In contrast, Ether ETFs recorded a modest inflow of $4.60 million, primarily attributed to Fidelity's FETH. Over a recent week, Bitcoin ETFs faced a net outflow of $581.23 million, with Fidelity's FBTC experiencing the largest loss of $282.12 million. Ether ETFs, during the same period, had a net outflow of $26.3 million, with Grayscale's ETHE losing $56.46 million.
Additionally, Ether-based exchange-traded products (ETPs) led recent inflows, amassing $793 million, significantly outpacing Bitcoin ETPs. Despite this, Bitcoin ETPs maintain a lead in year-to-date inflows, reaching nearly $6 billion. Meanwhile, U.S.-listed spot Bitcoin ETFs reported a 175% increase in inflows year-over-year, amounting to $4.4 billion between January and early February 2025. Bitwise's Chief Investment Officer, Matt Hougan, highlighted that Bitcoin ETFs saw nearly $5 billion in inflows during January alone, setting a pace that could exceed $50 billion for the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.