Grayscale Investments LLC is boosting its ETF aspiration with a recent Bank of New York Mellon Corp. agreement. In an announcement on Tuesday, the firm said it would transfer administration and fund account functions to BNY Mellon in October 2021. This makes BNY Mellon an official partner with services focused on Grayscale’s conversion of GBTC into a BTC ETF.
In the press release, Grayscale CEO Michael Sonnenshein explained that the partnership represents a breakthrough regarding the company’s ETF plans. He further explained the reason why the company chose BNY Mellon:
“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.”
BNY Mellon will be responsible for transfer agency and ETF Services if the Securities and Exchange Commission (SEC) accepts Grayscale’s application.
Grayscale Investments is not the only company in the market seeking approval from US regulators. However, it is the largest cryptocurrency asset management firm with its Bitcoin Trust service currently handling over $20 billion under management.
The investment company mentioned in April that it is “100% committed” to this conversion as soon as US regulators approve its proposal. However, this may take a while because the SEC has deferred the deadline for approving applications.
Image Credits: Pixabay
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