BNY Mellon to help Grayscale convert Bitcoin Trust into ETF

Asset management firm Grayscale Investments has signed an agreement with Bank of New York Mellon (BNY Mellon), under which the financial holding company will act as custodian for the Grayscale Bitcoin Trust (GBTC).

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

According to the press release, from October 1, 2021 BNY Mellon will assume accounting and administration functions for the bitcoin-trust. The group will also act as transfer agent and will handle the servicing of the ETF after the GBTC conversion into an exchange-traded fund.

“The onboarding of BNY Mellon is an important milestone in our commitment to transforming the Grayscale Bitcoin Trust into an ETF,” said Grayscale CEO Michael Sonnenshein.

In March Grayscale opened nine vacancies with mention of the exchange-traded fund.

A month later the company announced plans to convert the bitcoin-trust into an ETF based on the first cryptocurrency.

Earlier, filings to launch a bitcoin ETF with the U.S. Securities and Exchange Commission (SEC) were submitted by VanEck, WisdomTree, NYDIG, Bitwise, Valkyrie Digital Assets, SkyBridge Capita and First Trust Advisors, as well as ARK Invest and 21Shares.

Later, the regulator moved the decision dates for WisdomTree’s applications to July 14, 2021, for Kryptoin Investment Advisor to July 27, for Valkyrie Digital Assets to August 10, and for SkyBridge Capital to August 25 respectively.

In July, SEC Commissioner Hester Peirce said the agency would have long since approved exchange-traded products based on digital gold if it had applied its standard approach to their review.

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