Grayscale links up with banking giant BNY Mellon to prep for bitcoin ETF

Grayscale is ramping up its efforts to get its flagship bitcoin fund ready for the ETF prime time. 

The firm — which manages over $30 billion in digital assets — announced Tuesday that it will offload fund account and administration functions for the Grayscale Bitcoin Trust to BNY Mellon in October. Those functions are currently executed in-house, according to CEO Michael Sonnenshein. 

The new deal sets the stage for BNY Mellon's role in Grayscale's plans to convert GBTC into a bitcoin ETF. 

"Engaging BNY Mellon is an important milestone as part of our commitment to converting Grayscale Bitcoin Trust into an ETF," said Sonnenshein in a press release. "BNY Mellon has a long-standing reputation as a trusted provider and has established one of the first teams dedicated to servicing the growing digital currency asset class."

Sonnenshein first unveiled Grayscale's plans to upgrade its GBTC product into an ETF on an episode of The Scoop. 

Grayscale is among several firms in the market hoping for bitcoin ETF approval from US regulators. Despite a recent slide in crypto prices and its AUM, it is still the largest cryptocurrency asset management with more than $20 billion under management for its Bitcoin Trust product.