Grayscale Partners BNY Mellon in Latest Step Towards Converting GBTC to an ETF

New York-based asset manager Grayscale has announced that it has partnered with New York’s oldest bank BNY Mellon to become an asset servicing provider for the Grayscale Bitcoin Trust (GBTC). 

According to an announcement today, effective from October 1, 2021, BNY Mellon will, under the partnership, be in charge of GBTC accounting and administration. Should the GBTC product be converted to an ETF in the near future, the partnership will see BNY Mellon provide transfer agency and ETF services for Grayscale’s flagship product – GBTC. 

Under the agreement, Grayscale will experience improved scalability and resilience via the BNY market-leading platform that is developed specifically to support ETFs, the announcement adds. 

Furthermore, Grayscale hopes to benefit from BNY’s innovative fund structure that has seen it attract investors into the cryptocurrency market, thus positioning GBTC for long-term success. 

Michael Sonnenshein, CEO of Grayscale Investments, said: 

Engaging BNY Mellon is an important milestone as part of our commitment to converting Grayscale Bitcoin Trust into an ETF.

Sonnenshein added that BNY Mellon was chosen because of its reputation as a trusted provider that has established one of the best teams committed to servicing the growing cryptocurrency class.  

“Providing essential fund administration services to Grayscale further validates that BNY Mellon stands squarely at the intersection of trust and innovation,” said Roman Regelman, CEO of Asset Servicing and Head of Digital at BNY Mellon. 

The Race to Launch a Bitcoin ETF

The move is imperative to Grayscale’s vision of converting GBTC into a publicly traded fund that will be listed on a stock exchange, in accordance with its strategic product pipeline. 

Recall that several financial institutions have launched several efforts at offering a Bitcoin Exchange-traded Fund (ETF) in the United States, but have failed in the past. 

Firms like VanEck, Bitwise, and WisdomTree Investments, among others, have all filed for a Bitcoin ETF, posing a serious threat to Grayscale’s GBTC product should their application be approved. 

Not leaving anything to chance, Grayscale reiterated earlier this year that it was committed to converting its GBTC product into a Bitcoin ETF and has made significant moves into making the dream a reality.