What To Know:
- BitGo and 21Shares have expanded their partnership across the US and Europe to strengthen custody and staking support for crypto ETPs.
- The collaboration aims to meet rising institutional demand by combining secure custody, liquidity access, execution, and staking rewards for regulated crypto investment products.
- The move comes as BitGo scales its regulated footprint with new banking approvals and EU licensing, while 21Shares grows its $5.7 billion ETP portfolio.
BitGo and 21Shares have expanded their partnership across US and Europe, to support a global range of exchange traded products. The collaboration will extend across custody and staking services, as 21Shares scales its global footprint.
Under the agreement BitGo will provide infrastructure that spans secure custody, integrated staking, liquidity access, and trade execution. Meanwhile, 21Shares will use this infrastructure to support its expanding lineup of ETPs and ETFs across major markets.
BitGo, 21Shares Join Forces for Crypto ETPs
21Shares currently manages around $5.7 billion in assets. Its products are designed for institutional investors looking for exposure to crypto assets through regulated financial instruments. The firm’s approach to product structuring and risk management has helped it grow across Europe and gain traction in the US. With this partnership expansion, it aims to go beyond its offering as more investors turn to listed vehicles for crypto exposure.
Notably, BitGo provides custody solutions backed by insurance, along with prime brokerage, trading, and execution services. By combining these with staking, BitGo positions itself as a full-service platform for asset managers that need secure and compliant digital asset operations.
The two firms said the expanded partnership would improve access to liquidity across both electronic and over-the-counter markets. It will also allow 21Shares to offer competitive staking rewards tied to its ETP products, while maintaining operational and regulatory standards across jurisdictions.
Adam Sporn, Head of Prime Brokerage and Institutional Sales at BitGo, said the firm has valued its relationship with 21Shares from the outset. He added that the expansion will support 21Shares’ growing suite of US ETF products and global ETPs, particularly across custody and staking services.
Andres Valencia, Head of Investment Management at 21Shares, said BitGo was selected for its track record in regulatory compliance, safety, and security. He noted that the custody framework is designed to support institutional operations and risk management across the firm’s product lineup, and that the expanded relationship will strengthen those capabilities.
The move comes during a period of regulatory and corporate milestones for BitGo. The firm recently received approval from the Office of the Comptroller of the Currency to convert its subsidiary into a federally chartered trust bank. It has also secured a Markets in Crypto-Assets Regulation license from Germany’s BaFin, which allows it to provide regulated services across the European Union. In addition, BitGo has completed a listing on the New York Stock Exchange, marking a major step in its corporate growth.
The partnership expansion also coincides with BitGo’s public listing and market structure. BitGo CEO Mike Belshe, who founded the firm in 2013, has spoken about the limitations of the traditional IPO process. Recently, he argued that legacy listing models depend mostly on established banking networks and may not deliver the most efficient price discovery. He pointed to alternatives such as Dutch auctions and direct listings as potential improvements, and also noted parallels between stock listings and token issuance in crypto markets.
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