Bitwise Hires Service Providers for Bitcoin ETF Trust Including BNY Mellon

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Bitwise Hires Service Providers for Bitcoin ETF Trust Including BNY Mellon

bitwise-hires-service-providers-for-bitcoin-etf-trust

Cryptocurrency index and fund provider Bitwise has hired several service providers to manage its forthcoming bitcoin exchange-traded fund (ETF) Trust, assuming the latter can gain approval. 

Bitwise Bitcoin ETF 

According to an amended S-1 form filed by Bitwise with the US Securities and Exchange Commission (SEC) on Sept. 11, the firm has hired the services of Bank of New York (BNY) Mellon to act as the Trust’s administrator. Foreside Fund Services will serve as the marketing agent for the bitcoin ETF Trust, with Cohen & Co. acting as the auditor. 

Despite announcing the hires, Bitwise, along with the rest of the crypto industry, has hit a regulatory roadblock in gaining approval for the ETF. Bitwise first filed an application for the Trust with the NYSE in January. However, the SEC has continually delayed making a decision on bitcoin ETF approvals, with the Bitwise ruling being scheduled for mid-October. 

Earlier in the week, SEC Chairman Jay Clayton told CNBC that “progress is being made” on approving a bitcoin-based ETF but there is “work left to be done” before the product can get the regulatory green light. 

He said, 

People needed to answer these hard questions for us to be comfortable that this was the appropriate kind of product.

Clayton highlighted price manipulation and lack of clear custody as his primary concerns for approving the proposed fund.

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