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What Happens to Bitcoin ETF Investors if a Sponsor or Custodian Fails?

Bitcoin.com News·July 17, 2026·1 min read
What Happens to Bitcoin ETF Investors if a Sponsor or Custodian Fails?

U.S.-listed bitcoin ETFs now hold an estimated 1.25 million bitcoin worth over $100 billion. Few shareholders have read the prospectus language detailing what happens if the fund's sponsor or custodian collapses. BlackRock's iShares Bitcoin Trust, known as IBIT, is one of the major funds.

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