Bitwise Asset Management’s Bitcoin ETF: A Journey with BNY Mellon at the Helm

BNY Mellon Takes the Helm

In a significant turn of events, Bitwise Asset Management has roped in the Bank of New York Mellon as the transfer agent and administrator for their much-anticipated Bitcoin (BTC) exchange-traded fund (ETF). While this may seem like a mere footnote in financial history, it’s more akin to partnering with a seasoned navigator when you’re setting sail into uncharted waters.

Details of the Amendment

On September 11, Bitwise updated its S-1 submission to the United States Securities and Exchange Commission (SEC). The newly amended form not only enlists BNY Mellon’s expertise but also highlights the accounting prowess of Cohen & Company as the auditor and the Boston-based Foreside Fund Services as the marketing agent. Think of it as assembling the Avengers of the financial world, each member with specific skills to tackle the complexities of the Bitcoin universe.

The Wait for Approval

However, hiring a dream team is one thing; actually getting the thumbs-up from regulators is another. These firms won’t officially start their roles until the SEC makes a decisive call on the ETF proposal. As of now, the decision from the SEC has been delayed yet again to October 13, leaving investors pacing in anticipation like kids waiting for Christmas morning.

The Long and Winding Road

The saga of the Bitcoin ETF is hardly a leisurely stroll in the park. Back in January 2019, Bitwise first filed its proposed rule change under the Securities Act of 1933 for a listing on NYSE Arca. Ever since, the path has been riddled with bumps, mostly due to regulators’ concerns over market manipulation in the volatile cryptocurrency realm. Their anxiety is understandable; it’s like letting a toddler run around with scissors at a birthday party!

Optimism Prevails

Despite the ongoing regulatory cat-and-mouse game, Bitwise CEO Hunter Horsley keeps his chin up. In an August chat, he conveyed that the SEC is actually open about its reservations regarding a Bitcoin ETF, particularly surrounding custody proof issues. Meanwhile, SEC Chairman Jay Clayton reassured everyone that progress is being made, though he cautioned, “There is work left to be done.” Sounds like the perfect line for a sequel, don’t you think?

BNY Mellon’s Crypto Experience

Speaking of experience, BNY Mellon isn’t just sitting on its laurels. With more than $33 trillion in assets under its wing as of December 2018, it’s not a newcomer to the crypto-party. The financial giant has previously partnered with Bakkt to forge a Bitcoin futures trading platform and has been dabbling in blockchain technology since 2015. If Bitcoin were a school, BNY Mellon would definitely be headed straight for the honor roll.