Grayscale has increased its attempts to convert GBTC into a Bitcoin ETF.
In October, BNY Mellon will take over the Bitcoin Trust’s fund accounting and administrative operations.
The digital asset manager’s conversion of GBTC will also be supported by the New York-based bank’s transfer agency and ETF services.
BNY Mellon, the country’s oldest bank, has been chosen to offer asset services for Grayscale’s main investment product, the Bitcoin Trust (GBTC).
BNY Mellon will begin providing fund accounting and administration services for Grayscale’s Bitcoin Trust on October 1.
Grayscale, a digital asset manager, has named BNY Mellon as an asset service provider after the Bitcoin Trust is transformed into an exchange-traded fund (ETF) after receiving approval from the US Securities and Exchange Commission (SEC). Once the conversion is complete, the American investment bank will also supply Grayscale with transfer agency and ETF-related services.
Grayscale indicated in April that once the regulatory climate in the United States opens up to the new asset class, it will convert its Bitcoin Trust to an ETF. In 2016, the digital asset manager applied for a BTC ETF for the first time. In the United States, no Bitcoin ETFs have yet been approved.
If the SEC authorizes the conversion of GBTC to an ETF, shareholders will no longer be subject to a six-month lockup period and a 2% yearly management fee. This might bring the crypto trust’s net asset value closer to that of the leading digital asset.
Grayscale is currently the largest cryptocurrency asset management organization, with over $20 billion in its Bitcoin Trust under management.
In addition to Grayscale, BNY Mellon has agreed to serve as the service provider for First Trust Advisors and SkyBridge Capital’s proposed Bitcoin ETF. The investment bank would provide similar services after the ETF is approved by the SEC, such as administration and transfer agency services, as well as basket operations and order taking.
Following the institution’s decision to enter the cryptocurrency field earlier this year, the oldest bank in America wants to introduce digital asset custody services in Ireland.
Since June 28, the price of bitcoin has been stabilizing and trapped in a downward parallel channel on the daily chart. BTC is still trading sideways, as the asset tries to find a foothold.
The continuous lower highs have been connected by a descending trend line that has been visible since June 18. The pattern shows that Bitcoin price may be headed towards lower lows, with the lower border of the parallel channel tagging the lower boundary.
Chart of BTC/USDT on a daily basis
The critical demand barrier between $30,150 and $32,045 is predicted to be retested by Bitcoin’s price. As a vital line of defense for BTC, investors should pay attention to the 78.6 percent Fibonacci retracement level, which lies at $31,450. The leading cryptocurrency might retest the $28,120 bottom from 2021 if it fails to retain the $30,150 level as support.
Bitcoin’s price, on the other hand, faces numerous challenges if BTC bears gain control. At $34,710, a big line of resistance occurs near the 50 percent Fibonacci retracement level as well as the 50-day Simple Moving Average./n
