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Bank of New York Mellon Tapped as Administrator for Bitwise’s Planned ETF

The Bank of New York Mellon has been tapped to act as the administrator and transfer agent for Bitwise Asset Management’s planned Bitcoin (BTC) exchange-traded fund (ETF). 

The San Francisco-based company modified the S-1 form it presented to the US Securities and Exchange Commission (SEC) on September 11. 

As the administrator and transfer agent, the Bank of New York (BNY) Mellon will be in-charge of redeeming shares and responding to shareholders’ concerns. It will also be responsible for maintaining client accounts. 

Bitwise has also named BNY Mellon as its ETF custodian

Aside from selecting the financial institution as to its administrator, Bitwise’s amended S-1 form also listed Boston legal company Foreside Fund Services as the BTC ETF’s marketing agent and Cohen & Company as an auditor. 

However, it’s still unclear whether the aforementioned companies will take on those positions as the decision to permit the listing will depend on America’s financial regulators. 

Bitwise also has not yet decided on a company to act as its cryptocurrency custodian that’s tasked to safeguard its digital assets. 

The journey to having a Bitcoin ETF listed has been a long, hard one. At the start of the year, Bitwise Asset Management registered its suggested rule amendments to the Securities Act of 1933 in an opening bid to list its BTC ETF on NYSE Arca. 

Since then, the ETF has gone through meandering delays from regulators wary about the possibility of manipulation in the digital currency markets and its consequences on the theoretical Bitcoin ETF. Its latest setback as the SEC deferring its decision on the listing to October 13. 

Hunter Horsley on the Topic

Hunter Horsley, Bitwise’s CEO, remains positive about an eventual listing despite the delays from regulators. In an interview last August, Horsley pointed out that the US SEC has been transparent about its worries regarding a BTC ETF, which included questions related to proof of custody. 

However, SEC Chairman Jay Clayton had admitted recently that there’s been progress regarding the ETF. But he also noted that there’s still work to be done and that his agency still had critical concerns that have to be addressed. 

BNY Mellon appears to be a good choice for administrator and transfer agent. The banking giant already has experience working in the blockchain and cryptocurrency space. The company has been involved with blockchain tech since 2015 and has collaborated with Bakkt to develop a Bitcoin futures trading exchange. BNY Mellon is tasked with facilitating personal key storage for Bakkt’s BTC futures contracts.

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