BNY Mellon selected to provide services for Grayscale Bitcoin ETF following SEC approval


  • Grayscale is stepping up its efforts for the conversion of GBTC into a Bitcoin ETF.
  • BNY Mellon will be taking over the fund accounting and administration functions for the Bitcoin Trust in October. 
  • The New York-headquartered bank will also support the digital asset manager’s conversion of GBTC with transfer agency and ETF services.

The oldest bank in the United States, BNY Mellon, has been designated to provide asset services for Grayscale’s flagship investment product, its Bitcoin Trust (GBTC).

Grayscale reaffirms commitment for Bitcoin ETF conversion

Starting on October 1, BNY Mellon will provide fund accounting and administration services for Grayscale's Bitcoin Trust.

Digital asset manager Grayscale announced that the firm had designated BNY Mellon to serve as an asset servicing provider once the Bitcoin Trust is converted into an exchange-traded fund (ETF) following approval from the US Securities & Exchange Commission (SEC). The American investment bank will also provide transfer agency and ETF-related services for Grayscale once the conversion comes to fruition. 

Grayscale announced in April its commitment to convert its Bitcoin Trust to an ETF once the regulatory environment in the United States becomes more open to the new asset class. The digital asset manager initially applied for a BTC ETF in 2016. No Bitcoin ETFs have been approved so far in the United States.

If the SEC approves and GBTC is converted into an ETF, shareholders will no longer need to endure a six-month lockup and a 2% annual management fee. This could bring the crypto trust more in line with the net asset value of the leading digital asset.

Currently, Grayscale remains the largest cryptocurrency asset management firm with over $20 billion under management by its Bitcoin Trust. 

Apart from Grayscale, BNY Mellon has also worked out a deal to become the service provider for First Trust Advisors and SkyBridge Capital’s proposed Bitcoin ETF. Once the SEC approves the ETF, the investment bank would provide similar services, including administration and transfer agency services, as well as basket operations and order taking.

The oldest bank in America also plans to launch digital asset custody services in Ireland, following the institution’s decision to enter into the cryptocurrency space earlier this year.  

Bitcoin price lacks decisiveness

Bitcoin price has been consolidating and sealed in a descending parallel channel on the daily chart since June 28. BTC continues to trade sideways while the asset scrambles to secure support.

A declining trend line has revealed itself, which has emerged since June 18, connecting the continuous lower highs. The pattern suggests that Bitcoin price could also be expecting lower lows, tagging the lower boundary of the parallel channel.

BTCUSDT

BTC/USDT daily chart

Bitcoin price is expected to retest the crucial demand barrier between $30,150 to $32,045. Investors should also pay attention to the 78.6% Fibonacci retracement level, which sits at $31,450 as a critical line of defense for BTC. Should the asset fail to hold the $30,150 level as support, the leading cryptocurrency could retest the 2021 low at $28,120.

On the flip side, Bitcoin price has many obstacles ahead should BTC bears take control. A major line of resistance appears to be at the upper boundary of the parallel channel at $34,710, nearing the 50% Fibonacci retracement level as well as the 50-day Simple Moving Average.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Crypto bulls unfazed by flash crash

Bitcoin price action initially shakes off strong selling pressure, finds buyers at support, then resumes some selling pressure. Ethereum price action mixed post-all-time high rejection. XRP price awaits its own bullish breakout and an opportunity to outperform its peers.

More Cryptocurrencies News

MATIC price ready for new all-time highs as $188 million flow into Polygon

The total number of transactions on Polygon network dropped nearly 15% due to a rise in transaction fees over the past week. This hasn’t negatively impacted the network as the number of unique daily active users remained stable. 

More MATIC News

AVAX price offers a bullish opportunity before Avalanche hits new all-time highs

Avalanche (AVAX) price has seen a bullish outbreak on Thursday after it broke out above – and then retested – the red descending trend line at $61.62. With even more buyers and bulls coming in, expect a run towards new all-time highs at $81.

More AVAX News

XLM price building base for bullish breakout

Stellar bulls are in the last phase of completing a bullish triangle. As XLM price is getting squeezed against the base ($0.40), expect a quick breakout of 12%. After taking a breather, expect another 10% of profits to follow. 

More Stellar News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP