Bitwise has made bank of New York Mellon its asset transfer and administrative agent for the proposed Bitcoin exchange-traded fund, ETF. This follows an amendment that was filed by the company to its bitwise bitcoin ETF S-1 form on Wednesday that made a point of appointing BNY Mellon as the administrator and custodian of ETF.

It also made the foreside fund services to be bitcoins marketing agents and Cohen & Co. as the company’s auditor. The Bitcoin custodian for the Trust is yet to be named. The chief operating officer of bitwise Teddy Fusaro opines that “an ‘ETF’s service providers play a critical behind the scenes role in supporting any fund.” He additionally goes ahead to state that “we are pleased to disclose experienced and professional service providers from the traditional ETF ecosystem will attend to work with and support the proposed product.

BNY Mellon has recently assumed an active responsibility in the cryptocurrency space, specifically in the past recent months. These can be stipulated by the bank’s partnership with Bakkt, which is the Intercontinental exchange subsidiary that warehouses ICE, bitcoin Futures contracts that allow for the provision of geographically distributed storage of private keys.

Bitwise also filed its opinion on Wednesday that is reported to state that the ETF should be regulated and taxed like any other Grantor Trust. This is to say that the Trust would be liable for any taxes warranted on any Grantor Trust.

The opinion was also seconded by Vedder Price P.C., which is a local law firm in New York. The filing of the ETF with the New York securities exchange in January of 2019 hopes to provide the first such fund to the U.S. clients. Notwithstanding, the securities and exchange commission, SEC, which has the overall regulatory mandate in the country, has for a long time been hesitant in the approval of ETFs that are based around cryptocurrencies. For instance ‘Bitwise’s approval has been for a while now rejected a number of times and even postponed by the SEC, but the final decision is expected to be made by October 13 of 2019.

In the onset of this week, the chair of the securities and exchange commission, Jay Clayton made a move to express his reservation and opinion concerning the approval of a bitcoin ETF. It is reported that he told CNBC that questions that surround the custody and marketing manipulation are yet to be resolved as such.

Part of ‘Fusaro’s statement reads in part “we continue to work towards answering of the significant questions and that the securities and exchanges commission needs answering before they’re ready to approve a bitcoin ETF.”

What's your reaction?
Leave a Comment