Grayscale Partners With BNY Mellon For Asset Service Management
Grayscale Investments has teamed up with the Bank of New York Mellon so that the New York-based banking giant can be the Grayscale Bitcoin Trust (GBTC)’s asset services provider. This move will supposedly help Grayscale’s move in converting its GBTC into a Bitcoin exchange-traded fund (ETF). A move Grayscale has been hoping to achieve since April.
Grayscale Prepares GBTC For ETF
Part of the terms for this deal is for BNY Mellon to control GBTC’s accounts and administration. Right now, the firm’s in-house team is in charge of those duties. Once the conversion of GBTC into an ETF becomes a reality, BNY Mellon will also start offering transfer agency and ETF-related services.
According to the release, Grayscale hopes to maximize Mellon’s modern ETF-supported platform to improve its automation, resilience, and scalability. Grayscale CEO (Micheal Sonnenshein) remarked that “our collaboration with BNY Mellon is a part of our objective of turning our GBTC into an ETF… We are delighted that BNY Mellon will partner with our best in-house service providers. Thus, we can provide unrivaled investment experience in this industry.”
It is remarkable to note that Grayscale’s first Bitcoin ETF application was sent five years ago. Still, the firm withdrew its application because there was no apparent oversight for virtual assets at that time. Grayscale is re-applying again because there have now been significant changes and better regulation for digital assets.
SEC Won’t Approve Any Bitcoin ETF Proposal This Year Or Next Year
One of the great debates in the industry is whether U.S. Securities and exchange commission (SEC) will approve a Bitcoin ETF because it has rejected several Bitcoin ETF proposals in the last few years. Crypto enthusiasts are convinced that an approved Bitcoin ETF would be a pivotal moment for the crypto industry.
Investors who are unwilling to deal with various complexes with owning a Bitcoin or deal with it directly can use a Bitcoin ETF to invest in Bitcoin. The SEC hasn’t revealed when it would approve over 12 proposals waiting on its table as of this writing. The latest Bitcoin ETF proposal is from ark invest (an investment firm owned by Cathie Wood) and 21shares (an asset management and banking firm).
There is even no clue that the SEC is ready to approve a Bitcoin ETF now or in the nearest future. If the SEC approved all the Bitcoin ETF proposals on its table, the Bitcoin ETFs would overcome the S&P 500 as the most tracked index.
First Ethereum ETF In South America
While the United States SEC is still foot-dragging its decision to approve the Bitcoin ETF proposals before it, Brazil’s SEC has approved an Ethereum ETF. It is the first Ethereum approved ETF in South America.
QR asset management will in charge of this ETF. This Brazil SEC’s second approved ETF after it approved a Bitcoin ETF earlier this year. Canada has the highest number of approved Bitcoin ETFs; it has three, with all of them approved this year. Hence, it would seem that other South and North American countries are following in their footsteps.
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