BNY Mellon, the world’s largest custodian, would be the service provider for a proposed bitcoin exchange-traded fund (ETF) that would be offered by First Trust Advisors and SkyBridge Capital.

If the ETF is approved, the custody bank would provide ETF basket operations, order taking, fund accounting, fund administration and transfer agency services, according to the firm’s press release. 

First Trust and SkyBridge’s bitcoin ETF application is one of several made recently. WisdomTree, NYDIG, Valkyrie and VanEck have all filed but the U.S. Securities and Exchange Commission, which has historically rejected bitcoin ETF applications, hasn’t made a decision on any of the recent crop of filings. Most recently, Grayscale, a CoinDesk sister company, announced its intention to convert the closed-end Grayscale Bitcoin Trust to an ETF when it is “permissible” to do so.

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

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