BNY Mellon would be the first trust service provider, SkyBridge’s bitcoin ETF proposal

BNY Mellon, the world’s largest custodian, would be the provider of the proposed bitcoin trading fund (ETF) and would be offered by First Trust Advisors and SkyBridge Capital.

If the ETF is approved, the custodian bank will provide basketry ETF services, account retrieval, fund accounting, fund management and transfer agency services, the company said in a statement.

The ETF application First Trust and SkyBridge bitcoin is one of several recently made. WisdomTree, NYDIG, Valkyrie and VanEck all applied, but the U.S. Securities and Exchange Commission, which has rejected bitcoin ETF applications in the past, has not ruled on any of the recent crop applications. Recently, Grayscale, a sister company of CoinDesk, announced its intention to turn the closed Grayscale Bitcoin Trust into an ETF when “allowed”.

If bitcoin ETFs are approved this year, analysts believe that while they will primarily compete for fees and liquidity, they are also likely to compete over custody and insurance options.