Bitcoin ETF: Grayscale and BNY Mellon join forces
Bitcoin ETF: Grayscale and BNY Mellon join forcesBitcoin ETF: Grayscale and BNY Mellon join forcesSEC arbeitet an neuen Guidelines für Crypto und Bitcoin (ETF)

Banking giant BNY Mellon has reaffirmed its commitment to the cryptocurrency space. The company has agreed to be the asset servicing provider for Grayscale’s BTC Trust. In doing so, the announcement stated that BNY Mellon will become Grayscale’s official partner from October 1, 2021.

Grayscale and BNY Mellon are preparing bitcoin ETF.

The world’s largest digital asset manager Grayscale Investment has entered into a major partnership with America’s oldest bank BNY Mellon. The announcement states that the banking giant will provide fund accounting and administration services to Grayscale Bitcoin Trust.

Grayscale has been working to prepare its flagship bitcoin fund for ETF primetime for some time. They have now found an excellent partner in BTN Mellon to handle the fund account and administration functions. In the process, CEO Michael Sonnenshein announced back in February that Grayscale was looking to upgrade its GBTC products to an ETF.

This new deal now sets the stage for plans to turn GBTC into a bitcoin ETF. To that end, Sonnenshein said in a press release:

The involvement of BNY Mellon is an important milestone in our commitment to convert 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 serving the growing digital currency asset class.

Grayscale awaits approval from US regulators

Grayscale is one of the firms hoping to get bitcoin ETF approval from US regulators. BNY Mellon will then provide transfer agent and ETF services in the future if the application is approved. At the same time, this also means that the bank’s market-leading platform will improve scalability, resilience as well as automation of the asset manager. In doing so, the New York-based bank had already announced in early 2021 a <a href=”” target=”_self” rel=”noopener”>BTC custody service established and offered to institutional clients.

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However, Grayscale’s GBTC is not the only potential ETF to be included in BNY Mellon’s expertise. Back in 2019, BNY Mellon was appointed transfer agent and administrator of Bitwise Asset Management’s proposed bitcoin ETF.

So far, however, U.S. regulators have yet to approve a bitcoin ETF. This is mainly because regulatory decisions involve delays. Canada and Brazil have been a bit faster on this front and have several bitcoin ETF products on the market. These include ETFs from Canadian asset manager 3iQ, for example, as well as from European firm CoinShares and Brazilian asset manager QR Asset Management.

Even though Bitcoin & Co. prices are currently declining, Grayscale is still the largest cryptocurrency asset management firm. It manages more than US$20 billion in assets for its Bitcoin Trust product.

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