BNY Mellon’s agreement with Grayscale, a testament to Bitcoin’s growing demand

The wave of institutional clients entering Bitcoin [BTC] might have hit a slump, but Grayscale Bitcoin Trust continues to remain one of the most prominent vehicles. GBTC just got a fresh boost from one of the most prolific banks in the world as it aims to intensify the former’s ETF ambitions.

In the latest news, the world’s leading asset manager, Grayscale Investments has teamed up with the Bank of New York Mellon Corporation, a.k.a BNY Mellon. As per the latest agreement, BNY Mellon will transform into an asset servicing provider for Grayscale’s Bitcoin Trust [GBTC]. The main objective is to scale Grayscale Bitcoin Trust and convert it into an ETF in the coming days.

With this collaboration, BNY Mellon further aims to expand its foothold in the digital asset realm.

Michael Sonnenshein, who happens to be the CEO of Grayscale Investments, highlighted that the engagement with BNY Mellon is a crucial step as part of its commitment to converting Grayscale Bitcoin Trust into an ETF. He went on to add,

“BNY Mellon has a long-standing reputation as a trusted provider and has established one of the first teams dedicated to servicing the growing digital currency asset class. We are pleased that BNY Mellon will join a group of Grayscale’s best-in-class service providers, helping us deliver a seamless, industry-leading investment experience.”

BNT Mellon’s other Bitcoin ETF bets

BNY Mellon happens to be America’s oldest bank and has more than 230-year history that dates back to June 1784. Its strategic collaboration to provide transfer agency and ETF services for Grayscale is a testament to the cryptocurrency’s growing demand even as the price moves sideways.

BNY Mellon might be new to the Bitcoin game, but it is one of the long-standing financial institutions. Hence, in addition to the asset manager, Grayscale’s GBTC, BNY Mellon’s expertise was also positioned as transfer agent and administrator of Bitwise Asset Management’s proposed Bitcoin ETF two years back. Furthermore, the latest news comes at an important stage when several countries, except for the United States have embraced Bitcoin ETFs.

Following the development, Roman Regelman, CEO of Asset Servicing and Head of Digital at BNY Mellon, was quoted saying,

“Providing essential fund administration services to the world’s largest digital currency asset manager further validates that BNY Mellon stands squarely at the intersection of trust and innovation. It’s another critical milestone in our rapidly growing digital asset capabilities and broader strategy of putting client choice at the center of everything we do.”