BNY Mellon to act as transfer agent and administrator for Bitwise proposed Bitcoin ETF.
September 12, 2019, | AtoZ Markets - Bitwise Asset Management, a cryptocurrency funds, and index provider has engaged BNY Mellon to act as an administrator and transfer agent in a Bitcoin-linked exchange-traded fund (ETF).
On Wednesday, the company corrected its application for the launch of bitcoin ETFs in the S-1 form indicating in it BNY Mellon as an administrator, Foreside Fund Services as a marketing agent, Cohen & Co. as an auditor. Bitwise has not yet indicated the custodian of Bitcoins in the trust on the basis of which she wants to create ETFs.
Long way for Bitwise proposed Bitcoin ETF
BNY Mellon has been actively involved in the life of the cryptocurrency space, especially in recent months. The bank entered into cooperation with the custodial division of the Bakkt crypto platform to provide a “geographically distributed” private key store and recently was also involved in the functions of administrator and transfer agent for VanEck SolidX bitcoin trust shares offered to institutional investors.
Together with the NYSE Arca exchange, Bitwise has applied for the Bitcoin ETF launch in January 2019. However, the US SEC has repeatedly delayed the ETF’s decisions.
Bitwise COO Teddy Fusaro said: “ETF service providers play a critical hidden role in supporting any fund. We are pleased to name the experienced and professional service providers from the ecosystem of traditional ETFs with whom we intend to work with in order to support our product.”
A few days ago, SEC head Jay Clayton drew his remaining doubts regarding Bitcoin ETFs, in particular, related to asset storage issues and market manipulation opportunities.
Bitwise along with NYSE Arca filed to seek the SEC’s permission to launch a Bitcoin ETF in January. However, after a number of delays, the US SEC is yet to decide on the application of the proposed Bitcoin ETF.
Moreover, Bitwise also proposed that the Bitcoin ETFs that should be taxed like a grantor trust. This means that the digital asset should be treated as a property for taxation.
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