Zodia Custody, a prominent digital asset custodian, has formed a partnership with 21Shares, a crypto ETP issuer, to provide custody services for their crypto exchange-traded products (ETP) in Switzerland and across Europe. This collaboration marks a significant development in the digital asset space, as Zodia Custody, backed by Standard Chartered, SBI Holdings, Northern Trust, and National Australia Bank, offers top-notch security and expert custody services for institutional investors looking to invest in 21Shares’ ETP.
21Shares, in their email to CoinGape on June 25, announced the partnership with Zodia Custody as a strategic move to enhance their custody services for physically backed digital asset ETPs. With Zodia Custody as their main custodian, institutions investing in 21Shares’ ETP will benefit from cold-storage wallets and instant access to move their digital assets in the market. Julian Sawyer, CEO of Zodia Custody, expressed their commitment to delivering a partnership that prioritizes security, risk management, and compliance without compromise.
The recent surge in institutional investments in crypto exchange-traded products (ETPs), including ETFs like the spot Bitcoin ETF, has sparked massive interest among professional investors. As per 21Shares, 937 professional investors owned $11 billion in US spot Bitcoin ETFs, representing nearly 20% of the ETFs’ total assets as of Q1 2024. This adoption rate is 10% higher than the adoption recorded by Gold ETFs in their first quarter post-launch. However, there has been a significant drop in institutional investments in Bitcoin ETPs in the last two weeks, with digital asset investment products recording $1.2 billion in outflows during this period.
The crypto market sentiment has shifted from greed to fear as Bitcoin’s price dipped below $60k, currently trading at $61,017 with a 0.26% decrease at press time. The 24-hour low and high for Bitcoin are $58,601 and $62,900, respectively. Despite the market volatility, some investors are viewing this as a buying opportunity and are considering buying the dip. The fluctuations in Bitcoin price have also impacted institutional investments in crypto ETPs, with some investors taking a cautious approach in light of the market uncertainty.
In conclusion, the partnership between Zodia Custody and 21Shares signifies a significant step towards enhancing custody services for institutional investors looking to invest in crypto ETPs. With Zodia Custody’s expertise in security and risk management, coupled with 21Shares’ innovative ETP offerings, the collaboration aims to provide a secure and compliant investment environment for institutions in Switzerland and the broader European market. Despite the recent downturn in institutional investments in Bitcoin ETPs, the overall sentiment remains positive as professional investors continue to show interest in digital asset products. As the crypto market evolves, partnerships like the one between Zodia Custody and 21Shares play a crucial role in fostering trust and confidence among institutional investors in the digital asset space.
