BNY Mellon to provide ETF services for Grayscale’s Bitcoin Trust

BNY Mellon to provide ETF services for Grayscale’s Bitcoin Trust

The bank of New York Mellon, America’s oldest bank, has signed an agreement with cryptocurrency asset manager Grayscale Investments to provide a set of services to its flagship Bitcoin (BTC) investment product.

Grayscale officially announced Tuesday that it selected BNY Mellon as an asset servicing provider for Grayscale Bitcoin Trust (GBTC), a major digital currency investment product providing indirect exposure to Bitcoin.

Our top trading bots

BNY Mellon is also expected to provide transfer agency and exchange traded fund-related services for the GBTC upon its conversion to an ETF, Grayscale noted. As part of the agreement, BNY Mellon will provide GBTC with fund accounting and administration effective Oct. 1, 2021.

The agreement aims to further improve Grayscale’s GBTC in terms of scalability, resiliency and automation through BNY Mellon’s platform, including the bank’s proprietary ETF center that offers technology specifically designed to support digital asset ETFs. The new development is also an important milestone for Grayscale as it reinforces the company’s commitment to converting GBTC into an ETF as its strategic goal, Grayscale CEO Michael Sonnenshein said.

Roman Regelman, CEO of asset servicing and head of digital at BNY Mellon, noted that the bank’s relationship with Grayscale “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,” he added.

Related: Grayscale publishes roadmap for turning its products into crypto ETFs

Grayscale’s GBTC is not the only potential ETF that is expected to involve BNY Mellon’s expertise. In 2019, BNY Mellon was appointed to serve as transfer agent and administrator of Bitwise Asset Management’s proposed Bitcoin ETF.

As previously reported, the United States regulators have not yet approved a Bitcoin ETF, having delayed multiple regulatory decisions on such products in recent months. Other global jurisdictions like Canada and Brazil have already launched several Bitcoin ETF products, including ETFs by Canadian asset manager 3iQ, European firm CoinShares, and Brazilian asset manager QR Asset Management.

Keep reading upon Cointelegraph
Nonfungible tokens from a legal perspective
A nonfungible token (NFT) can be both a representation of a physical or digital asset that only exists on the internet — a programmable piece of art. It...
Crypto mining firm Argo Blockchain files for US IPO
Argo Blockchain, a U.K. publicly traded company focused on crypto mining, has begun the process of applying for an initial public offering in the United...
US Bitcoin mining giant Core Scientific set for Nasdaq listing via $4.3B SPAC deal
Core Scientific, one of the largest Bitcoin (BTC) mining operations in North America is set for a public listing on Nasdaq.According to CNBC on Wednesday,...
Crypto staking rewards and their unfair taxation in the US
The United States Internal Revenue Service (IRS) stretches the tax rules to fit its cryptocurrency agenda. At no time in tax history has pure creation been...
Korean investigation finds $1.48B in illegal overseas crypto transactions
An interagency investigation into suspected crypto fraud and money laundering in South Korea has led to the discovery of 1.69 trillion won (about $1.48...
Latin lawmakers don lazer eyes on Twitter in support of Bitcoin
Gabriel Silva, a Panamanian congressman, is moving to follow in El Salvador’s footsteps by proposing legislation to adopt Bitcoin and other cryptocurrencies...
Forget Elon, here's why Bitcoin traders should be watching the US Dollar Index instead
Bitcoin (BTC) prices fell by almost 5% on June 4, continuing the decline into the Friday session as investors grappled with Elon Musk's cryptic tweets on...
VORTECS Report: How volatility drove one crypto trading strategy to 280x Bitcoin's gains
What does a highly volatile asset class offer traders, beyond palpitations and the occasional heart attack? Opportunity.Nicole Wirick of Prosperity Wealth...
EOS Falls 37% In Rout
Investing.com - EOS was trading at $5.4878 by 21:50 (01:50 GMT) on the Investing.com Index on Thursday, down 36.77% on the day. It was the largest one-day...
Rari Capital allocates $26M from developer fund to compensate hack victims
Following a $10 million exploit over the weekend, decentralized finance protocol Rari Capital is formulating a plan to compensate victims.According to an...
EOS Climbs 29% In a Green Day
Investing.com - EOS was trading at $12.2244 by 22:59 (02:59 GMT) on the Investing.com Index on Friday, up 29.45% on the day. It was the largest one-day...
Time magazine names two crypto firms in Top 100 ‘Most Influential Companies’ list
Time Magazine continues to warm up to crypto, naming Digital Currency Group and Coinbase in its 2021 Top 100 Most Influential Companies list. Published on...
Are emerging markets missing out on DeFi due to gas fees?
Despite grand visions of enabling farmers in Vietnam access to the world of global finance via Decentralized Finance, emerging markets could represent as...
Number-two gaming DApp raises $2 million in private utility token sale
Gaming decentralized application Alien Worlds announced on Monday that it had successfully raised $2 million in a sale of its utility token, Trilium (TLM),...
Ethereum’s Biggest Upgrades Casper & Sharding May Roll Out Together
Ethereum’s team has been planning to present the novel technological updates to the system, but it seems that there might be some alterations taken before...