Bitcoin wallet and service provider Xapo has been chosen as the custodian over the assets held by Bitcoin Investment Trust (BIT).
BIT, managed by Grayscale Investments LLC, a subsidiary of Barry Silbert’s Digital Currency Group, became the first publicly traded bitcoin investment vehicle when it launched in May. Each share represents one tenth of a bitcoin. Shares have been trading at a premium to the true price of bitcoin, possibly a result of initially high demand or a perceived higher level of protection than when holding the actual bitcoins themselves. However, the shares have since gravitated toward fair value.
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The milestone comes at a time of Xapo’s embroilment in a legal dispute with LifeLock, a provider of digital identity theft protection solutions. LifeLock alleges that Xapo’s CEO Wences Casares and several other members of his team illegally used intellectual property to found their startup.
In entrusting all of its holdings with Xapo, BIT appears to be affirming its faith in the startup’s long-term sustainability.
Silbert said BIT continues to grow its assets and has sought the services of Xapo to join “the ranks of the Bitcoin Investment Trust’s other leading service providers.” He said Xapo is “a leader in the bitcoin vaulting and storage space.”