US banks are venturing into crypto space


BNY Mellon would like to participate in a Bitcoin ETF as a service provider. Meanwhile, State Street is planning its own crypto trading platform for institutional investors.

Bitcoin ETFs have had a real odyssey for several years. While they have already been able to reach crypto-Ithaca in Canada or Brazil, the odyssey in the USA does not seem to be over yet. The US Securities and Exchange Commission has so far thwarted every ETF application submitted. The authority mostly cited regulatory concerns as the reason. Since that time, however, Bitcoin has undergone a change, the focus of which has been placed primarily on its value-storing properties. This impressed many institutional investors, which is why since the end of last year more and more people have been tempted to invest in digital assets and to rely on the promise as a protective shield against inflation. More and more traditional financial institutions are also increasingly interested in the relatively young crypto assets.

BNY Mellon becomes service provider of Bitcoin ETF

Since then, more and more wealth managers have ventured into the SEC. VanEck, NYDIG, WisdomTree: The list of aspirants is long. The last Request well-known financial service provider was created through a partnership between First Trust Advisor and Skybridge Capital. New details have now become known about this. BNY Mellon becomes the service provider of the “First Trust SkyBridge Bitcoin ETF Trust”. That goes from a Press release of the asset manager. More precisely, BNY Mellon takes on the compilation of the ETF basket, the order acceptance, the accounting, the administration and the function as a transfer agent. BNY Mellon’s Global Head of Fund and Asset Services, Alan Flanagan, was delighted with the new role of asset manager.

As the world’s largest asset service, we take great pride in working with our customers to bring new, innovative products to market. The growing interest in digital assets represents an attractive way for investors to discover cryptocurrencies. We are proud to partner with First Trust to bring their new Bitcoin ETF to market.

Alan Flanagan, Global Head of Fund Services, Asset Servicing at BNY Mellon

State Street is planning its own crypto platform

In addition to the BNY Mellon, State Street is currently causing a stir in the crypto space. The second oldest bank in the United States with assets under management of $ 3.1 trillion provides the infrastructure for a new trading platform designed to make it easier for banks to trade crypto assets. Eventually, the financial institution could ultimately use the platform itself. To this end, the subsidiary Currenex is working with the London-based infrastructure provider for foreign exchange trading Pure Digital to create a trading platform for institutional investors.

The fact that more and more institutional investors are interested in the crypto space is an extremely bullish signal for Bitcoin and Co. Not only does it show that the situation has changed significantly compared to the BTC bubble 2017/2018. In addition, it is also a significant step towards crypto adoption. The creation of suitable infrastructures for investors and the approval of various crypto ETPs, such as Bitcoin ETFs, are an immense partial success for the comparatively young investments. In order to take this partial success to the next level, one of the big banks would finally have to decide to invest in Bitcoin and Co. itself.

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