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Grayscale’s commitment to turning Grayscale Bitcoin Trust into an ETF as a strategic goal is reinforced by the new agreement.
The Bank of New York Mellon, America’s oldest bank, has agreed to provide a set of services to its flagship Bitcoin (BTC) investment product through a partnership with cryptocurrency asset management Grayscale Investments.
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.
Grayscale said that BNY Mellon is also likely to offer transfer agency and exchange traded fund-related services for the GBTC upon its conversion to an ETF. As part of the deal, BNY Mellon will offer fund accounting and administration to GBTC beginning Oct. 1, 2021.
The partnership intends to strengthen Grayscale’s GBTC in terms of scalability, resilience, and automation by utilising BNY Mellon’s infrastructure, which includes the bank’s own ETF centre, which provides technology especially intended to serve digital asset ETFs. The new development is particularly significant for Grayscale since it reaffirms the company’s commitment to transforming GBTC into an ETF as a strategic goal, according to Grayscale CEO Michael Sonnenshein.
According to Roman Regelman, BNY Mellon’s CEO of asset servicing and head of digital, the bank’s collaboration 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.
Grayscale’s GBTC is not the only prospective ETF that will rely on BNY Mellon’s knowledge. BNY Mellon was selected as the transfer agent and administrator of Bitwise Asset Management’s planned Bitcoin ETF in 2019.
As previously noted, US authorities have yet to authorise a Bitcoin ETF, having postponed many regulatory judgments on such products in recent months. Other worldwide countries, including as Canada and Brazil, have already introduced Bitcoin ETF products, such as ETFs from Canadian asset manager 3iQ, European business CoinShares, and Brazilian asset manager QR Asset Management.