Our commitment to transparency:
Independent Digital Asset Custody Report
FTX, Alameda & Co. Read our investor letter

Digital Assets in Custody

Since inception, ETC Group’s highest priority and focus has been transparency and investor protection.

ETC Group created the first centrally cleared Bitcoin ETP incorporating an additional investor protection mechanism into the product’s operational structure that is unique for ETP issuers: An independent transaction administrator was appointed to control and countersign all asset movements within the issuer of the ETP with legally enforceable veto rights over the movement of those assets. This independent administrator monitors and issues a weekly balance report on assets in custody, available to investors here on our website..

Every transaction and movement of funds is monitored

As stated in our prospectus, the Administrator must approve each operational transaction of the ETPs, in terms of custody (i.e. holdings in the respective cryptocurrency) and the number of securities issued. This means that neither ETC Group, nor issuers belonging to ETC Group, can move investors' cryptocurrencies without external consent. The possibility of misconduct or operational errors is thus reduced to a minimum.

The implementation of this additional security feature by ETC Group goes well beyond the EU Prospectus Regulation and the regulatory requirements for issuers. Another security feature: an independent trustee holds the security rights to the investors' crypto assets. This trustee is also named in the issuing prospectus of our ETPs. Both measures, i.e. the complete and independently verified deposit of the assets and the provision in case of insolvency minimise the issuer default risk to a minimum.

For more details, see the infographic on our market-leading physical ETP structure:

View flowchart
Learn how the Physical ETC Structure works

ETC Group only partners with leading providers of digital asset custody

BitGo Trust pioneered multi-signature security in 2013 and, since then has become an industry standard in delivering institutional grade security solutions for digital assets.

BitGo logo

Regulated & Certified

Being the first qualified custodian purpose-built for holding digital assets, BitGo Trust Company is an independent trust company regulated by the South Dakota Division of Banking, and SOC 2 Type 1 & 2 certified.

Cold img Wallets

All ETP assets are kept in cold wallets. Cold wallets mean that the digital wallets are not connected to the internet. This protects the wallets from hacks, unauthorized access, and other vulnerabilities.

Multi-Signature
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Digital asset are stored using a multi-signature technology and can only be accessed when sharded keys held by separate entities are unities. This creates additional layers of security to protect investor funds.

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BitGo's $250 million custody insurance policy protects against third-party hacks, theft or dishonest acts by BitGo employees or executives as well as the loss of keys.

Coinbase Custody Trust Comany was founded in 2018 and is a custodian for digital assets. The company offers a secure, institutional-grade offline storage solution.

Coinbase logo

Regulated & Certified

Coinbase Custody is an independent qualified custodian and is a fiduciary under New York state banking laws. Coinbase custody is also the first crypto custodian to be issued both the SOC 1 Type 2 and SOC 2 Type 2 reports.

Cold img Wallets

All ETP assets are kept in cold wallets. Cold wallets mean that the digital wallets are not connected to the internet. This protects the wallets from hacks, unauthorized access, and other vulnerabilities.

Multi-Signature
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Coinbase Custody has developed its own first-class key generation protocol to generate cold storage addresses for custody wallets.

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Coinbase industry leading insurance policy protects both online and offline assets across all of Coinbase's products.