Coinbase Secures Custodial Role for Australia’s New Spot Bitcoin ETF by DigitalX
DigitalX announced on July 19 that cryptocurrency exchange Coinbase would be its custody partner for its new spot Bitcoin ETF (BTXX). The custody of the DigitalX Bitcoin ETF (BTXX) shows the exchange’s growing role in supporting the infrastructure for Bitcoin ETFs worldwide.
This information was confirmed in the official BTXX fact sheet released by DigitalX.
BTXX seeks to provide returns that mirror the performance of Bitcoin by maintaining long-term holdings of BTC.
“The fund is intended to be a passive holder of Bitcoin and will not buy and sell Bitcoin other than to facilitate redemptions and creation of Bitcoin interests,” the fact sheet reads.
Coinbase to Provide Custody for Australian Bitcoin ETF BTXX
Digitalx, an ASX-listed company, has selected Coinbase to deliver custody and advanced trading execution services for its recently approved Bitcoin exchange-traded fund (BTXX) in Australia. This partnership will offer… pic.twitter.com/KNglSEzB33
— EchoeWeb (@Echoeweb) July 29, 2024
The DigitalX Bitcoin ETF (BTXX) was launched on July 12, following approval from the Australian Securities Exchange (ASX) on July 9.
Since the approval of spot Bitcoin ETFs in the United States in January 2024, Coinbase has become a partner and custody provider for ten spot Bitcoin ETFs and eight of the nine newly approved Ether ETFs.
A custodian is a certified company that holds the digital assets of companies or individuals on their behalf. So, custodians play a critical role in the growth of the ETF market as they secure billions of dollars worth of crypto that the ETF owns.
Meanwhile, the DigitalX spot Bitcoin ETF is not the first Australian spot Bitcoin ETF. Recall that the country’s first Bitcoin ETF, VanEck Bitcoin ETF (VBTC), was launched on
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