Question 1

What is Bitcoin custody?

Accepted Answer

Bitcoin custody refers to the secure storage of private keys that control access to Bitcoin. Custodians implement multi-layer security including cold storage, multi-signature schemes, hardware security modules (HSMs), and geographic distribution to protect assets.

Question 2

What is a qualified custodian for Bitcoin?

Accepted Answer

A qualified custodian is a regulated institution authorised to hold client assets, such as a bank, trust company, or broker-dealer. Many institutional investors are legally required to use one under securities regulations such as the SEC's Custody Rule.

Question 3

How are custody fees typically structured?

Accepted Answer

Custody fees are usually charged as an annual basis-point fee on assets under custody (e.g. 0.05%–0.50% per year) or as a flat monthly fee. Some custodians offer tiered pricing that decreases as balances grow.

Question 4

What is cold storage in Bitcoin custody?

Accepted Answer

Cold storage means private keys are held offline, disconnected from the internet, making them inaccessible to remote hackers. Reputable custodians typically keep 95%+ of assets in cold storage and maintain only a small hot wallet for operational withdrawals.

Question 5

Do I need a custodian for a Bitcoin ETF?

Accepted Answer

Yes. Spot Bitcoin ETFs must appoint a qualified custodian to hold the underlying Bitcoin. The ETF prospectus will name the custodian and describe the custody arrangements.

Question 6

Which Bitcoin custodians are qualified custodians?

Accepted Answer

Of the 21 custodians tracked on 21Rates, 15 are qualified custodians, including BitGo Trust, Coinbase Custody Trust, Anchorage Digital Bank, Fidelity Digital Assets, and Gemini Trust. Qualified status means the provider is a federally or state-chartered bank, trust company, or broker-dealer legally permitted to hold client assets.

Question 7

How much insurance do Bitcoin custodians carry?

Accepted Answer

Publicly disclosed coverage includes BitGo ($250M via Lloyd's of London), Crypto.com ($750M via Lloyd's), Coinbase ($320M), and Gemini ($200M+ via Nakamoto Ltd). Coverage terms vary by custodian; crime and specie policies cover different scenarios, so confirm directly what assets and events are covered.

Question 8

What does Bitcoin custody cost?

Accepted Answer

Institutional Bitcoin custody fees typically run 4 to 150 basis points annually (0.04% to 1.5%), depending on provider and assets under management. Some providers charge no separate custody fee and monetize through trading spreads instead. Enterprise pricing is often custom above certain AUM thresholds.

Custodian↑	Qualified	Insurance	Fee↑	Min Balance↑	Custody Model
Anchorage DigitalEst. 2017	Yes	Lloyd's of London	Custom pricing	$500,000	Hosted Custody
Anchorage Digital provides hosted custody services and a $500,000 minimum balance. Full profile
Bitcoin Suisse AGEst. 2013	Yes	Undisclosed	0.5–1.5%/yr	CHF 5,000	Hosted Custody
Bitcoin Suisse AG provides hosted custody services and a CHF 5,000 minimum balance. Full profile
BitGoEst. 2013	Yes	$250M (Lloyd's)	0.04–0.15%/yr	$50,000	Hosted Custody
BitGo provides hosted custody services and a $50,000 minimum balance. Full profile
CasaEst. 2016	No	None (self-custody)	$30–$250/yr	None	Self-custody
Casa provides self-custody services. Full profile
CoinbaseEst. 2012	Yes	$320M	0.04–0.10%/yr	$1,000,000 for Prime Custody	Hosted Custody
Coinbase provides hosted custody services and a $1,000,000 for Prime Custody minimum balance. Full profile
CopperEst. 2018	Yes	Undisclosed	Custom pricing	Contact for requirements	Hosted Custody
Copper provides hosted custody services and a Contact for requirements minimum balance. Full profile
Crypto.comEst. 2016	Yes	$750M (Lloyd's)	No custody fee	None for standard accounts	Hosted Custody
Crypto.com provides hosted custody services and no minimum balance. Full profile
Fidelity DigitalEst. 2018	Yes	Undisclosed	0.05–0.40%/yr	$50,000	Hosted Custody
Fidelity Digital provides hosted custody services and a $50,000 minimum balance. Full profile
FireblocksEst. 2018	No	Up to $30M	$10K–$50K/yr	Based on platform tier	Hosted Custody
Fireblocks provides hosted custody services with a $10K-$50K/yr SaaS platform subscription based on tier. Per-transaction fees for transfers. Custom enterprise pricing available. custody fee and a Based on platform tier minimum balance. Full profile
GeminiEst. 2014	Yes	$200M+ via Nakamoto Ltd	0.04–0.10%/yr	$200,000 for custody	Hosted Custody
Gemini provides hosted custody services and a $200,000 for custody minimum balance. Full profile
HashKeyEst. 2018	Yes	Undisclosed	Custom pricing	$1,000,000	Hosted Custody
HashKey provides hosted custody services and a $1,000,000 minimum balance. Full profile
Hex TrustEst. 2018	Yes	Undisclosed	Custom pricing	Contact for requirements	Hosted Custody
Hex Trust provides hosted custody services and a Contact for requirements minimum balance. Full profile
KomainuEst. 2018	Yes	Undisclosed	Custom pricing	$10,000,000	Hosted Custody
Komainu provides hosted custody services and a $10,000,000 minimum balance. Full profile
KrakenEst. 2011	Yes	Undisclosed	No custody fee	None for standard, custom for institutional	Hosted Custody
Kraken provides hosted custody services and no minimum balance. Full profile
NunchukEst. 2020	No	None (self-custody)	Free / from $10/mo	None	Self-custody
Nunchuk provides for Bitcoin self-custody services. Full profile
Onramp BitcoinEst. 2022	Yes	Undisclosed	0.25–0.40%/yr	None	Hybrid
Onramp Bitcoin provides for Bitcoin collaborative custody services. Full profile
RiverEst. 2019	No	Undisclosed	No custody fee	None	Hosted Custody
River provides for Bitcoin hosted custody services. Full profile
sFOXEst. 2014	Yes	Undisclosed	Custom pricing	Contact for requirements	Hosted Custody
sFOX provides hosted custody services and a Contact for requirements minimum balance. Full profile
Tetra TrustEst. 2019	Yes	Undisclosed	0.20–0.50%/yr	Contact for requirements	Hosted Custody
Tetra Trust provides hosted custody services and a Contact for requirements minimum balance. Full profile
TheyaEst. 2022	No	None (self-custody)	Free / from $10/mo	None	Self-custody
Theya provides for Bitcoin self-custody services. Full profile
UnchainedEst. 2016	No	Undisclosed	$250–$500/yr	None	Multisig
Unchained provides for Bitcoin multisig custody services. Full profile

Bitcoin Custody Services

Bitcoin custody, answered

What is a qualified Bitcoin custodian?

Which Bitcoin custodians are qualified custodians?

How much insurance do Bitcoin custodians carry?

What does Bitcoin custody cost?

Self-custody vs third-party custody: which do I need?

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