Even though the funds entering Bitcoin seem to weaken, especially from institutional investors, Grayscale still believes and continues its plan.
The plan is to expand the fund’s reach under management and increase it from an ordinary Trust Fund to an Exchange Traded Fund (ETF).
The managed fund is the Grayscale Bitcoin Trust Fund (GBTC) which is the basis for Grayscale’s collaboration with Bank of New York (BNY) Mellon.
Grayscale Cooperates with BNY Mellon to Manage GBTC
Grayscale is reported to have chosen BNY Mellon as the custodian and supporter of GBTC management.
Later BNY Mellon will be responsible for depositing the funds and recording the GBTC holdings managed by Grayscale.
This step was taken as part of the plan to renew the GBTC from what was previously only a Trust Fund to an Exchange Traded Fund.
In Indonesian terms, both can be referred to as Mutual Funds, but with the update to ETFs, GBTC has become more widely traded in America.
Therefore, the regulations needed to get to ETFs are also getting tighter, so Grayscale has collaborated with BNY Mellon.
BNY Mellon will also assist with administrative matters likely to facilitate licensing with the Securities and Exchange Commission (SEC).
The collaboration begins on October 1, 2021, when one of the oldest banks in America will take care of administration and funds.
Later, when GBTC turns into an ETF, BNY Mellon will be responsible for recording holdings and recording the movement of GBTC in the market.
This collaboration is predicted to bring positive sentiment to the crypto market, as crypto publications are becoming more widespread through one of the oldest banks in the world.
Leveraging The Capabilities of One of The World’s Oldest Banks
Michael Sonnenshein, CEO of Grayscale, believes that this partnership demonstrates Grayscale’s commitment to owning an ETF.
Earlier this year, Grayscale assured that the change to the ETF would be official, especially with the reporting to the SEC. The CEO of Grayscale stated,
“BNY Mellon has a reputation for being a good ETF management service and has demonstrated its commitment to entering the digital asset world.”
The statement references his belief in the collaboration between Grayscale and GNY Mellon, which he considers an appropriate partner.
This is also due to BNY Mellon’s ETF development center, which convinced Sonnenshein of the bank’s capabilities.
The CEO of BNY Mellon Asset Management Services, Roman Regelman, stated that this collaboration is a critical milestone in entering the digital world.
Regelman also stated that this collaboration proves that BNY Mellon is a bank that will continue to follow the times.
Finally, Regelman also assured that this collaboration would prove that BNY Mellon is a bank that puts user demands first.
With Grayscale managing more than $30B and BNY Mellon managing $41.7 trillion, this collaboration will be significant.
Therefore, it is very likely that this collaboration can bring positive sentiment toward digital assets, especially the crypto market as a whole
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