While many changes brought benefits, some risks increased as well. Concentration of holdings across a small number of custodians raises questions about systemic vulnerability if a major custodian suffers an outage, security breach, or legal challenge. Transparency about custody segregation, insurance limits, and audit practices, therefore, remains critical to maintain investor confidence.
Regulators will continue to watch for feedback loops between and broader financial markets, especially if large redemptions interact with futures markets and other derivatives. Careful monitoring of concentration, counterparty exposures, and the readiness of custodial systems is necessary to reduce the chance of disruptive events.