The advent of Bitcoin ETFs offered investors the allure of crypto exposure within a familiar financial framework: easily understandable to advisors, compliant for regulatory teams, and seamlessly integrated into institutional portfolios. As of April 8, this sector amassed $91.71 billion under management, highlighting robust demand per CryptoSlate data.
Yet, now the spotlight shifts to infrastructure challenges. On April 20, Grayscale updated its Hyperliquid ETF filing, substituting Anchorage Digital Bank for Coinbase as custodian. This change, while seemingly minor, suggests a deeper industry introspection on the concentration of custody within regulated crypto ETFs. As CryptoSlate reported on April 12, funds designating Coinbase in some custodial capacity control approximately $77.10 billion, or 84.1% of total US spot Bitcoin ETF assets under management. Even accounting for multi-custodian setups, roughly $74.06 billion (80.8%) remains tied to Coinbase.
A single filing change doesn’t instantly signal a migration trend, yet custody choices in ETFs are telling due to the industry’s preference for established templates. As issuers begin exploring alternatives, it’s indicative of an evolving custody landscape. Historically, Coinbase gained prominence as the go-to custodian for spot Bitcoin ETFs, approved in January 2024, because of its strong compliance credentials and existing infrastructure that resonated with boards, auditors, and regulators.
This pattern persisted into 2026. For instance, Morgan Stanley’s March filing named Coinbase Custody alongside BNY Mellon as custodians for its Bitcoin exchange-traded product, reinforcing the trend. Moreover, Coinbase’s regulatory milestones, including conditional approval to charter Coinbase National Trust Company by the Office of the Comptroller of the Currency on April 2, further cemented its central role.
However, Grayscale’s switch to Anchorage Digital Bank—a federally chartered crypto-native bank—suggests a pivot towards diversification and redundancy. Previously used as a secondary custodian in certain trusts, Anchorage’s inclusion in Grayscale’s proposal aligns with broader market shifts towards custody diversity, prompted by the risks of concentration.
Operational and reputational risks loom large; disruptions at a dominant provider like Coinbase could have widespread implications. As the ETF market matures, reducing reliance on single providers becomes crucial for resilience. Hyperliquid’s regulatory sensitivity and unique structure may have further motivated Grayscale to choose Anchorage.
This filing is emblematic of a larger industry trend: as Bitcoin ETFs solidify their place in traditional finance, ensuring a robust underlying infrastructure is key. Wall Street’s journey with crypto has moved from access to legitimacy, now focusing on resilience. While the switch to Anchorage doesn’t resolve these issues, it signals a clear direction for future diversification and stability in crypto custody.