BNY Mellon has issued a formal notice that it is exposed to risk in connection with the commencement of investments in shares of exchange-traded funds linked to the price of Bitcoin. The financial institution invested part of its assets in Bitcoin ETFs from BlackRock and Grayscale.
“We have developed a platform that combines digital and traditional assets. It meets our clients' needs and manages risk while supporting the entire digital asset lifecycle,” BNY Mellon says on its website.
In accordance with current US law, banks offering deposit services are required to notify the regulator about risky investments, including in the digital asset market. This allows the SEC to monitor the financial activities of institutions and proactively identify potential threats to investors.
The amount of BNY Mellon's investment in the Grayscale Bitcoin Trust (GBTC) and BlackRock iShares Bitcoin Trust (IBIT) was not disclosed. Since 2022, the credit institution has been offering its clients Bitcoin storage services. And recently announced the launch of crypto services in partnership with the Grayscale Bitcoin Trust exchange-traded fund.
Source: Bits
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