In a bid to get BTC fund well-equipped for its Exchange-Traded Funds (ETFs), Grayscale signed a partnership deal with BNY Mellon. On Tuesday, the announcement was made by Grayscale that the firm will be leaving its administrative functions of the main BTC fund worth $21.5 Billion BTC to BNY Mellon beginning from October 2021. The tasks regarding BTC funds are handled within the firm, but soon the oldest bank in America will get to handle matters related to ETFs and transfer agency for Grayscale BTC trust (GBTC).
Roman Regelman, the Head of Digital and CEO of Asset Servicing at BNY Mellon said in a press release that “Having provided the essential services around fund administration to the largest digital currency asset manager in the world, it implies that the bank is currently standing strong at the intersection of innovation and trust.”
This serves as another remarkable milestone in the increasing capabilities of the bank when it comes to the digital asset and the comprehensive strategy of prioritizing clients in everything.
Grayscale is Making Progress Regarding ETF Conversion
The decision of Grayscale to collaborate with BNY Mellon is very strategic considering the possibilities of optimizing the GBTC through the BNY Mellon Platform. Improvements regarding resilience, automation, and scalability will be a great advantage that Grayscale will enjoy.
The BNY Mellon platform will provide access to digital solutions tailored towards supporting digital currency exchange-traded funds.
According to Michael Sonnenshein, the CEO of Grayscale, the move aligns well with the desire and commitment of the firm in converting the GBTC into an ETF. He continued by emphasizing the roles of BNY Mellon in the conversion plans that the firm has.
In the press release, the CEO mentioned that “working together with BNY Mellon is very strategic considering our commitment and effort in turning GBTC into an exchange-traded fund. The bank has an age-long reputation as a trusted provider and has also established one of the known teams committed to offering services around the digital asset class.”
Several firms are working towards getting approval for the BTC-ETF approval in the United States from the SEC. As a matter of fact, Grayscale is not the only firm working together with BNY Mellon in ensuring this. In 2019, the proposed BTC-ETF by Bitwise appointed the bank as an administrator and a transfer agent. But currently, the regulator has not granted anyone approval yet.
