USB key / file alternative?

Is it possible to make a backup copy of the USB key that I can store elsewhere digitally, and then restore to a USB flash drive later if needed?

Ideally I would prefer to not have a physical USB key in existence, but only a digital one I can store securely encrypted.

I’d also like to know this. I’m finding myself feeling very nervous about keeping the key safe. Is it possible to make a disk image of the key and write it to another USB drive?