Grayscale has teamed up with banking giant BNY Mellon to turn its Bitcoin fund into an exchange-traded fund (ETF
Leading crypto asset manager Grayscale has teamed up with banking giant BNY Mellon to turn its Bitcoin fund into a Bitcoin ETF. This is what the company announced yesterday, explaining that BNY Mellon acts as an asset service provider for the Grayscale Bitcoin fund (OTCQX: GBTC).
„Through this agreement, BNY Mellon will take over fund accounting and management for Grayscale Bitcoin funds from October 1, 2021. In addition, BNY Mellon is expected to provide transfer and ETF services to the fund when converting the Grayscale Bitcoin Trust into an ETFGrayscale explained.
CEO Michael Sonnenshein said that the role of the asset service provider is currently performed internally. However, by working with BNY Mellon, Grayscale is ready to convert its GBTC into a Bitcoin ETF.
In a press release, the CEO said: “The appointment of BNY Mellon is an important milestone in our commitment to convert the Grayscale Bitcoin Trust into an ETF. BNY Mellon has a long-standing reputation as a trusted provider and has built one of the first teams dedicated to servicing the growing digital currency asset class.“
BNY Mellon, for its part, is pleased to support Grayscale in its venture to create a Bitcoin ETF. The agreement aims to provide Grayscale with improved scalability, resiliency and automation. Grayscale unveiled its plans to convert its GBTC fund into a Bitcoin ETF earlier this year.
The Company must file an application with the US Securities and Exchange Commission (SEC). So far, the SEC has not yet approved a single Bitcoin ETF application. They have already postponed four decisions on Bitcoin ETFs this year, with the regulator dealing with nine Bitcoin ETF and two Ether ETF applications.