In a formal notice, BNY Mellon acknowledges the potential risks associated with its investment in Bitcoin-linked exchange-traded fund units. The financial institution has allocated a portion of its assets to Bitcoin ETFs managed by BlackRock and Grayscale.
“At BNY Mellon, we have created a robust platform that seamlessly integrates digital and traditional assets, catering to the needs of our clients while effectively managing risk throughout the lifecycle of digital assets,” states the bank on its official website.
As per existing US regulations, banks offering deposit services are obligated to inform the regulator about any investments considered risky, including those in the digital asset market. This transparency enables the SEC to monitor financial activities of institutions and proactively identify potential threats to investors.
The specifics regarding the amount of BNY Mellon’s investments in the Grayscale Bitcoin Trust (GBTC) and BlackRock iShares Bitcoin Trust (IBIT) funds remain undisclosed. The bank has been offering its clients bitcoin storage services since 2022 and recently unveiled its plans to introduce crypto services in partnership with the Grayscale Bitcoin Trust exchange-traded fund.