Although the influx of institutional investors into Bitcoin has slowed, Grayscale Bitcoin Trust remains one of the most notable institutional investor. GBTC has received a new push from one of the world’s most powerful banks, which intends to strengthen the former’s ETF goals.
Grayscale Investment Partners With BNY Mellon
Grayscale Investments, a digital asset management, has chosen BNY Mellon to serve as the asset servicing provider for its flagship product, the Bitcoin Trust. BNY Mellon will now run the Bitcoin Trust, which was previously converted into an SEC-reporting firm, as part of the agreement.
From October 1, 2021, BNY will take over the fund’s accounting and administration. In the future, when the Bitcoin Trust Fund is converted into an Exchange Traded Fund (ETF), BNY will operate as a transfer agency.
Grayscale has hired BoNY to do servicing for $GBTC. Another step towards trying to convert $GBTC and build out ETF operation (curr looking to hire like 10ppl). Altho not clear if/when they will be able to convert. Via @cfb_18 pic.twitter.com/CC7exdJ5NG
— Eric Balchunas (@EricBalchunas) July 13, 2021
Michael Sonnenshein, Chief Executive Officer of Grayscale Investments, believes that the arrangement demonstrates the company’s commitment to becoming an ETF, as stated previously. Earlier this year, the company reaffirmed its firm commitment to transitioning the Bitcoin Fund into an ETF in accordance with the product’s strategic roadmap. When the Fund became an SEC-reporting business, it had already completed the third step of the pipeline.
Sonnenshein further said, “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.”
He emphasized his delight and confidence in BNY’s ability to assist Grayscale in providing a seamless and industry-leading investment experience. With an ETF Center that provides technological support for digital assets, BNY Mellon is a market leader.
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Through BNY’s platform, Grayscale will be able to scale its operations, become more resilient and automated, and position the Trust for long-term success.
Roman Regelman, BNY Mellon’s CEO of Asset Servicing, said the agreement was a critical milestone in the company’s digital assets capabilities and a reflection of their commitment to always putting the client first. “Providing vital fund administration services to the world’s largest digital currency asset manager further reinforces BNY Mellon’s position at the crossroads of trust and innovation,” he said.
While Grayscale Investments is considered to be the largest global assets management company with about $30B in assets in its investment portfolios, BNY Mellon is touted to be the world’s largest asset servicing firm with over$2.2T in assets under management. A collaboration between the two industry leaders will be mutually beneficial. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK) and renders its services in up to 35 nations globally.
BTC/USD still below $35k. Source: TradingView
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Featured image from UnSplash, charts from TradingView