Grayscale: partnership with BNY Mellon for bitcoin ETFs

Yesterday Grayscale Investments announced a partnership with BNY Mellon for ETF-related services of their Bitcoin Trust. 

In fact, for some time the company that manages the now famous bitcoin investment fund, GBTC, would like to transform it into an ETF , but for now in the USA no ETFs on BTC have been authorized yet. 

BNY Mellon is the oldest US bank still in business, and has already entered the crypto sector for some time by providing services to its customers. It is also a global investment company, providing financial services to institutions, corporations and individual investors, including wealth management. 

As of March 31, 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 a service provider for its Grayscale Bitcoin Trust (GBTC), and thanks to this agreement BNY Mellon will provide the accounting and administration of funds starting October 1, 2021. 

Grayscale with BNY Mellon to launch bitcoin ETFs

However, the aim is also to provide services related to the possible Grayscale ETF on bitcoin in the future . In particular, the proprietary platform of BNY Mellon ETF Center will be used, which offers technology specifically designed to support digital asset ETFs.

This announcement actually reinforces the hypothesis that Grayscale will convert its GBTC into an ETF , and could help make SEC approval less difficult.  

Grayscale Investments CEO Michael Sonnenshein said: 

“Involving BNY Mellon is an important milestone as part of our commitment to convert Grayscale Bitcoin Trust into an ETF. BNY Mellon has a long-standing reputation as a trusted provider and has formed one of the first teams dedicated to serving the growing digital currency asset class. We are delighted that BNY Mellon is joining a group of first-class service providers from Grayscale, helping us provide a seamless, industry-leading investment experience. ” 

BNY Mellon’s Asset Servicing CEO and Head of Digital, Roman Regelman, added: 

“Providing essential fund administration services to the world’s largest digital currency asset manager further confirms that BNY Mellon is exactly at the crossroads of trust and innovation. It’s another key milestone in our capabilities in the fast-growing digital asset industry, and in the broader strategy of putting customer choice at the heart of everything we do. “

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