Yesterday Grayscale Investments announced a partnership with BNY Mellon for services related to the ETF of their Bitcoin Trust.
In fact, for some time the company that manages the now-famous investment fund on bitcoin, GBTC, would like to turn it into an ETF. However, no ETF on BTC has yet been authorized in the US.
BNY Mellon is the oldest US bank still in business, and has been in the crypto sector for some time now, providing services to its clients. It is also a global investment firm, providing financial services to institutions, corporations and individual investors, including asset management.
As of 31 March 2021, it had $41.7 trillion in assets under custody or administration, $2.2 trillion in assets under management and over $1 trillion in ETF assets.
Grayscale has selected BNY Mellon as the service provider for its Grayscale Bitcoin Trust (GBTC), and through this agreement, BNY Mellon will provide the accounting and administration of the funds beginning October 1, 2021.
Grayscale with BNY Mellon to launch bitcoin ETFs
The intention is also to provide services related to Grayscale’s possible bitcoin ETF in the future. In particular, it will use BNY Mellon’s proprietary ETF Center platform, which offers technology specifically designed to support digital asset ETFs.
This announcement actually strengthens the case for Grayscale to convert its GBTC into an ETF, and could help make the approval of the SEC less challenging.
Grayscale Investments CEO Michael Sonnenshein said:
“Engaging BNY Mellon is an important milestone as part of our commitment to converting Grayscale Bitcoin Trust into an ETF. BNY Mellon has a long-standing reputation as a trusted provider and has established one of the first teams dedicated to servicing the growing digital currency asset class. We are pleased that BNY Mellon will join a group of Grayscale’s best-in-class service providers, helping us deliver a seamless, industry-leading investment experience”.
BNY Mellon’s CEO of Asset Servicing and Head of Digital, Roman Regelman, added:
“Providing essential fund administration services to the world’s largest digital currency asset manager further validates that BNY Mellon stands squarely at the intersection of trust and innovation. It’s another critical milestone in our rapidly growing digital asset capabilities and broader strategy of putting client choice at the center of everything we do”.
