Based on a recent report, Coinbase Custody Platform has made it known that it has forged a partnership with Bitwise Asset Management to keep its funds in custody.
Bitwise Asset Management Now in Custody
Bitwise Asset Management is a firm that provides index and beta of crypto assets funds. It released the first ever virtual currency index called the Bitwise 10 Private Index Fund in 2017 and also applied for an EFT approval with the Securities Exchange Commission (SEC) in the United States.
The Chief Operating Officer at Bitwise, Teddy Fusaro while commenting on why the company decided to keep its funds in Assets Manager’s custody said that:
“Our choice of partners is critical in this regard, particularly when it comes to crypto custody. It’s Bitwise’s goal to be the leading brand in crypto asset management and in order to do that we rely on other trusted leaders in the industry like Coinbase Custody.”
With Coinbase Custody, safe and secure storage is guaranteed for several virtual currencies as it has an insurance limit of $255 million placed on it by Aon, a Lloyd registered broker and sourced from a group of US and UK insurance firms worldwide.
Philip Martin, the Chief Information Security Officer at Coinbase stated that:
“Lack of insurance simply shouldn’t be a limiting factor for institutional investors any longer.”
There is a need for custody for Bitwise Asset Management’s index funds and future ETFs, and the restoration of trust in their commodities due to the cross-managerial efforts of two major companies in the crypto ecosystem.
Meanwhile, Bitwise was the first firm to release the ‘fake reported volume’ report that revealed the extent of wash trading in the market.
As of recent, Bitwise started working for institutional investors such as family offices and financial advisors to pensions, Foundation’s, individuals with high net worth, and foundations.