Digital asset manager Grayscale Investments yesterday announced its decision to select BNY Mellon as an asset management service provider for its flagship product, BTC Trust. The agreement means that BNY Mellon will now manage the BTC Trust, which has become a SEC-registered company.
The oldest bank in the US, BNY Mellon, will manage the GBTC
BNY will take over the accounting and management of the fund from 1 October 2021. In addition, BNY will act as a transfer agency when the BTC trust is later transferred to an exchange traded fund (ETF).
Commenting on the agreement, Grayscale Investments CEO Michael Sonnenshein believes that the agreement demonstrates the company’s commitment to move to ETFs, as previously stated. Earlier this year, the company reiterated its 100% commitment to convert the BTC fund to ETFs in line with the product’s strategic plan. The fund has already completed the third step of this strategic plan by becoming a registered company with the SEC.
Sonnenshein added: “BNY Mellon has a long-standing reputation as a trusted provider and has established one of the first teams to manage a growing class of digital assets.”
He expressed pleasure and optimism that BNY would help Grayscale facilitate a smooth and cutting-edge investment experience. BNY Mellon is an industry leader with an ETF center that provides technology support for digital assets. The agreement will help Grayscale expand its operations, increase its resilience and automation through the BNY platform, and help the trust achieve potential long-term success.
Roman Regelman, CEO of BNY Mellon’s asset management, noted that the partnership is a major milestone in their digital asset capabilities and a reflection of their willingness to always put the client first. He added that “The provision of basic fund management services to the world’s largest digital currency asset manager further confirms that BNY Mellon is right at the crossroads of trust and innovation.”
While Grayscale Investments is considered the largest asset management company in the world with assets in its investment portfolios worth around $ 30 billion, BNY Mellon is considered the largest asset management company with assets under management of over $ 2.2 trillion. Cooperation between the two industry leaders will be mutually beneficial. BNY Mellon is a corporate brand of The Bank of New York Mellon Corporation and provides its services in 35 countries around the world.