Major News Bank of New York Mellon Plans to Custody Cryptocurrency ETF Bitcoin Surges Past 64500

CoinJek News Report:
On Wednesday (September 25th), Bitcoin broke through $64,500, reaching a high of $64,589. Wall Street is eyeing digital asset income, and the Bank of New York Mellon plans to custody cryptocurrency ETFs. The bank does not need to comply with SAB 121 rules for its cryptocurrency ETF clients, and the bank recognizes custodied cryptocurrency on its balance sheet according to the rules.


Bank of New York Mellon plans to “custody” cryptocurrency ETFs
After review, the Bank of New York Mellon Corp. is moving towards the goal of launching custody services for Bitcoin and Ether held by ETF clients. The review allows the company to avoid considering these assets as liabilities on its balance sheet.
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(Source: Bloomberg)
The bank stated in a statement on Tuesday that the review conducted earlier this year by the Office of the Chief Accountant of the US Securities and Exchange Commission (SEC) did not object to the bank’s decision that the custodial assets of its regulated exchange-traded product clients should not be recognized on its balance sheet.
The SEC’s SAB 121 rule sets out balance sheet requirements to specifically address risks associated with cryptocurrencies. However, banks believe that this would prevent them from custodying digital assets, which is a potentially profitable business. The Bank of New York Mellon stated that the accounting firm’s decision was specific to the use of ETFs by financial institutions.
Therefore, the Bank of New York Mellon stated that no objection does not resolve the issue of SAB 121 effectively limiting banks from custodying digital assets, and added that it will work with the Office of the Chief Accountant (OCA) through the facts and circumstances process, in appropriate cases, to collaborate on similar use cases with the OCA.
In addition to the SEC, banks seeking to engage in cryptocurrency custody services also need approval from other regulatory agencies.
In an email statement, the Bank of New York Mellon told Bloomberg: “BNY Mellon has and will continue to work with its bank regulatory agencies to provide large-scale custody services for cryptocurrency ETF clients.”
Due to increasing concerns about hacking attacks, the digital asset industry has lost billions of dollars, so custodians charge up to 10 times more for cryptocurrency custody compared to traditional assets. The cryptocurrency custody market is currently valued at around $300 million and is growing at an annual rate of about 30%.
The Bank of New York Mellon announced in 2022 that its digital asset custody infrastructure is technologically ready, but SAB 121 poses challenges to the provision of this service. In early 2024, President Biden vetoed efforts by Congress to overturn SAB 121.
In recent months, the Office of the Chief Accountant has not raised objections to other financial institutions. A spokesperson for the SEC said, “Certain broker-dealers and custodian banks have adequately demonstrated to SEC staff that their facts and circumstances differ from those described in SAB 121.”
The SEC stated that these companies must ensure that customers retain ownership of their assets even in the event of bankruptcy or liquidation. The regulatory agency added, “In these circumstances, as long as their customers receive the same protections in terms of cryptocurrency asset protection as the custodial arrangement, their balance sheet treatment is the same as the custodial arrangement.”
The Bank of New York Mellon is a giant in the traditional market, managing assets exceeding $50 trillion as of the end of June. The Bank of New York Mellon stated, “There is strong demand in the market for banks to qualify as custodians of digital assets.”
According to the company, the Bank of New York Mellon supports 80% of the SEC-approved Bitcoin and Ether ETF products through its fund servicing business. Offering cryptocurrency custody will enable clients to access solutions.
Earlier this year, the launch of US-listed giant MicroStrategy’s Bitcoin exchange-traded fund highlighted opportunities in the cryptocurrency custody field. Over a dozen products launched by companies such as BlackRock and Fidelity Investments have accumulated assets of approximately $58 billion. Similar products for Ether have accumulated assets of over $7 billion.
The Bank of New York Mellon plans to enter the cryptocurrency ETP custody field, which will pose more intense competition for current major US ETF custodians such as market leader Coinbase Global Inc.
Digital asset regulation has become a topic of the US election, with cryptocurrency companies refuting intentional non-compliance allegations by SEC Chairman Gary Gensler. Republican candidate Donald Trump openly showed goodwill towards the industry, while Democratic vice presidential candidate Kamala Harris pledged to help increase investment in artificial intelligence (AI) and cryptocurrencies under appropriate protection.
Gensler will attend a hearing on securities regulation oversight by the House Financial Services Committee on Tuesday.
Saylor: 4 reasons for Bitcoin’s continued surge
Michael Saylor, CEO of US-listed giant MicroStrategy, predicts that Bitcoin’s price will continue to rise for four reasons. First, large companies such as BlackRock position Bitcoin as “digital gold” and promote its value storage potential to investors using modern technology. Second, the loose monetary policy of the Federal Reserve makes Bitcoin an attractive hedge against inflation.


(Source: Twitter)
Third, institutional investors such as the Bank of New York Mellon may soon offer Bitcoin custody services, simplifying investor access. Finally, Saylor pointed out that BlackRock has approved the Bitcoin ETF ladder, and clearer regulatory guidance is expected after the US presidential election. These factors strengthen institutional adoption and enhance investors’ confidence in Bitcoin’s future growth.
Bitcoin technical analysis
According to Cryptonews, Bitcoin has shown resilience around $63,875, staying above the key support level of $63,110. With the drive of increasing investor confidence, the market is gradually recovering from its recent lows.
The price movement is hovering in a tight consolidation area, with $63,875 being the focal point for buyers. The 50-period EMA at $63,072 provides solid dynamic support, strengthening Bitcoin’s uptrend.
On the upside, immediate resistance is at $64,400. If buyers break through this threshold, the next key resistance levels are $65,300 and $66,060.
Bitcoin has recently steadily risen above the upward trendline, indicating that the market is preparing for further upward movement to break through these resistance levels. On the downside, immediate support is at $63,072, followed by $62,600 and $62,379.
The RSI is at 52, indicating neutral momentum but with a slight bullish bias. Breaking above the 60 level would indicate a stronger upward momentum.
The 50-period EMA holds at $63,072, providing key support for the ongoing bullish narrative as long as the price stays above this level.
Bitcoin is stabilizing and maintaining support near $63,875, with a breakthrough of $64,419 being a bullish signal, while a drop below $63,072 could indicate short-term weakness.