Gemini selected as custodian for two major crypto ETFs in North America
Gemini selected as custodian for two major crypto ETFs in North America
Crypto exchange Gemini has been appointed as the custodian for two biggest cryptocurrency exchange-traded funds, marking the integration of digital assets into mainstream financial markets.
These ETFs represent significant progress in the accessibility and legitimacy of cryptocurrency investments. The direct custody of digital assets like Bitcoin and Ether by a regulated entity such as Gemini mitigates risks associated with indirect holdings and offshore accounts.
Gemini is set to serve as the custodian for Purpose Ether Staking Corp. ETF (ETHC.B), the largest Ether staking ETF in North America. Although detailed specifics of the Ether ETF are pending, it highlights Gemini's expanding influence in the institutional cryptocurrency market. The launch comes after Purpose Investments and Ether Capital, a Toronto-based crypto firm, reached an agreement on Friday, June 14, 2024. The agreement is for Ether Capital to become a staking Ether (ETF) that Purpose manages.
Earlier, Gemini has been appointed as the custodian for the Monochrome Bitcoin ETF (IBTC), launched on June 4 by Monochrome Asset Management, an Australian investment firm. This ETF is noteworthy as the first Australian spot Bitcoin ETF to hold Bitcoin directly under a specific crypto asset Australian Financial Services License.
Gemini's custodial services are known for their robust security measures and regulatory compliance. According to Crowdfund Insider, Gemini Fund Solutions oversees $2.7 billion in assets from institutional investors, reinforcing its reputation as a trusted custodian for crypto assets globally. The firm’s custodial infrastructure adheres to stringent standards outlined by regulatory bodies like the Australian Securities and Investments Commission (ASIC).
This move by Gemini is poised to attract a broader range of investors, further embedding cryptocurrencies into the fabric of global financial markets.
See also: Crypto markets face turbulence amid altcoin decline and stablecoin surge
