Bitcoin ETF Price War Is Trickling Down to Crypto Custodians

Less than a month after the debut of spot Bitcoin exchange-traded funds, the asset managers offering the investment vehicles appear to be seeking ways to bolster their own profitability.

Valkyrie Investments said Thursday that it’s retaining BitGo as a second custodian to help safeguard customer assets. Coinbase currently dominates the custody role for Bitcoin ETFs, supporting eight out of the 10 issuers, including for the roughly $113 million Valkyrie Bitcoin Fund, which trades under the BRRR ticker.

“We think it’s prudent to have multiple options and to make sure we are mitigating risk in a proper way on behalf ...