BNY Mellon, the world’s largest custodian, will be the service provider for a proposed Bitcoin Exchange Traded Fund (ETF) to be offered by First Trust Advisors and SkyBridge Capital.
According to the firm’s press release, if the ETF is approved, the custodian bank will provide ETF basket operations, order taking, fund accounting, fund administration, and transfer agency services.
Bitcoin ETFs from First Trust and SkyBridge are one of several made in recent times. WisdomTree, NYDIG, Valkyrie, and VanEck have all filed applications, but the US Securities and Exchange Commission, which has historically rejected Bitcoin ETF applications, has not ruled on any of the recent filings. More recently, Grayscale, a subsidiary of CoinDesk, announced its intention to convert the privately held Grayscale Bitcoin Trust to an ETF when it is “permissible”.
If Bitcoin ETFs are approved this year, analysts believe that while they will compete primarily on fees and liquidity, they will also likely compete on custody and insurance options.