Grayscale, the world’s largest digital asset management, has named BNY Mellon, the oldest custodial bank, as its ETF service provider.
BNY Mellon would serve as the asset servicing provider for GBTC, providing fund accounting and administration until the ETF is converted. The duration of service would begin on October 1st, 2021.
We have selected @BNYMellon as an asset servicing provider for Grayscale #Bitcoin Trust, an important milestone as part of our commitment to converting $GBTC into an #ETF. Learn more here. #BitcoinETF https://t.co/lItCbk7NFX pic.twitter.com/Gq6sCK3RHH
— Grayscale (@Grayscale) July 13, 2021
A few months ago, the digital asset management announced plans to turn its successful Bitcoin trust $GBTC into a Bitcoin ETF.
BNY Mellon is one of the industry leaders in asset management, according to Michael Sonnenshein, CEO of Grayscale Investments, and their relationship represents a critical milestone in the company’s roadmap to reach its ETF ambitions. “, he explained.
“Engaging BNY Mellon is an important milestone as part of our commitment to converting Grayscale Bitcoin Trust into an ETF. BNY Mellon has a long-standing reputation as a trusted provider and has established one of the first teams dedicated to servicing the growing digital currency asset class. We are pleased that BNY Mellon will join a group of Grayscale’s best-in-class service providers, helping us deliver a seamless, industry-leading investment experience.”
In the absence of regulated crypto ETFs, Grayscale’s Bitcoin Trust and other crypto offerings have become a go-to option for institutional investors in the United States.
To profit, investors purchase shares of Grayscale’s crypto funds and then sell them after a set length of time. Many institutional investors, on the other hand, remain wary of it due to a lack of regulatory clarity.
Grayscale is working hard to make its goods more compliant and secure as an investment. This is why, by next year, they plan to convert their popular Grayscale Bitcoin Trust into a Bitcoin ETF.
Grayscale’s Digital Large Cap Fund ($GDLC) also gained SEC approval, making it an SEC reporting firm and the third Grayscale product to receive SEC approval.