The oldest U.S. bank, BNY Mellon, and the world’s largest digital asset manager, Grayscale, have partnered. After Grayscale announced that its large cap fund is now an SEC-reporting company, BNY Mellon agreed to offer accounting and administrative services for Grayscale’s Bitcoin (BTC) trust.
Grayscale Investments announced that as of Oct. 1, 2021, BNY Mellon will become an official partner, offering several services for the company’s largest fund. Depending on the SEC’s approval of Grayscale’s application to have its own BTC ETF, BNY Mellon will provide transfer agency and ETF services.
Fully committed to the company's strategic product pipeline
If there's anything Grayscale wants to make clear, it's its commitment to converting the Grayscale Bitcoin Trust (GBTC) into an ETF. In fact, its goal is to convert all of its products into ETFs. Grayscale has examined this matter for a few years now, and its products are in various stages of reaching that milestone.
Back in 2016, Grayscale submitted an application for a Bitcoin ETF and remained in conversation with the SEC for the better part of 2017. Ultimately, it withdrew the application because the regulatory environment for digital assets didn't seem advanced enough for a product to be successfully brought to market.
However, in its partnership with banking giant BNY Mellon, Grayscale solidifies its commitment to this conversion. With the agreement, Grayscale gains access to BNY's proprietary ETF Center, which offers technology designed to support digital asset ETFs.
Grayscale holds both of the world's SEC-reporting crypto funds
Grayscale was the first company to launch a publicly traded Bitcoin fund in the U.S., and the first and only to convert a Bitcoin fund into an SEC-reporting company. Only two crypto funds in the world are SEC-reporting, and both belong to Grayscale: the GBTC fund and the Grayscale Ethereum Trust (ETHE).
Pioneering and launching a model of providing investors with exposure to digital assets in the form of security, Grayscale understands the challenges of the industry. Partnering with BNY Mellon offers Grayscale improved scalability, resiliency, and automation through BNY Mellon's market-leading platform.
A financial partnership that expands banking into the digital space
In providing “essential fund administration” services to Grayscale, BNY Mellon aims to validate where it stands—at the intersection of trust and innovation. Grayscale is confident in its position with the SEC and converting GBTC into an ETF.
When the conversion is complete, GBTC shareholders won't need to take action, and management fees will be adjusted accordingly.