Proof of Holdings
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.
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.
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 
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 
Security
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.
Insured 
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.
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 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 Security
Coinbase Custody has developed its own first-class key generation protocol to generate cold storage addresses for custody wallets.
Insured
Coinbase industry leading insurance policy protects both online and offline assets across all of Coinbase's products.
Komainu is a European digital assets custodian that has been founded in 2018. It was specifically built to meet the requirements of institutional investors and asset managers for the safekeeping of digital assets.
Regulated
Komainu (Jersey) Limited is a regulated and licensed custodian, with offices in Jersey, London, Dublin, Dubai, and Singapore and is regulated initially by the Jersey Financial Services Commission (JFSC).
Cold Wallet Custody
ETP/ETC assets are kept in cold storage wallets also known as offline air-gapped wallets within Komainu's digital vault.
Institutional-Grade
Security
Komainu's digital assets custody features multi-layer security technology, eliminating single points of failure and insulating digital assets from cyber-attacks, internal collusion, and human error.
Secure & Certified
Komainu is backed by industry standard certifications and accreditations such as SOC 1 Type I and Type II certified (PwC audited).
Zodia Custody (Ireland) Limited is a European digital assets custodian registered in the UK, Ireland and Luxembourg, underpinned by 160 years of institutional custody expertise thanks to the institutions backing the firm.
European Custodian
Zodia is based in London and registered in the UK with the Financial Conduct Authority (FCA), in Ireland with Central Bank of Ireland (CBI) and in Luxembourg with the Commission de Surveillance du Secteur Financier (CSSF).
Cold Storage Custody
Zodia's cold storage custody wallets are fully segregated wallets in line with CASS principles.
Institutional-Grade Security
The wallets have an involvency remote trust structure. Each wallet is cryptographically guaranteed for Proof-of-Ownership and Proof-of-Management, ensuring unparalleled security.
Secure & Certified
Zodia custody features a bank-grade compliance & governance framework and is SOC 1 and ISO 27001 certified.
