BIT appoints Xapo as custodian of its assets

Bitcoin Investment Trust (BIT) has chosen Xapo, a bitcoin wallet and service provider, as the custodian of its assets thereby asserting its trust in the startup's long-term sustainability.

Grayscale Investments LLC, a subsidiary of Barry Silbert's Digital Currency Group, manages BIT. The trust became the first publicly traded bitcoin investment vehicle since its inception in May.

The news comes at a time when Xapo is entangled in a legal dispute with LifeLock, a provider of digital identity theft protection solutions. LifeLock has levelled allegation against Xapo that it's CEO Wences Casares and several other members of his team have illegally used intellectual property to establish the startup.

By choosing Xapo as its custodian, BIT seems to be affirming its confidence in the startup.

Silbert said that BIT 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."