BNY Mellon Embraces Cryptocurrencies and Bitcoin ETFs: A Game-Changer in Traditional Finance

BNY Mellon, America’s oldest bank, has made significant strides in the world of cryptocurrency, supporting assets like Bitcoin and Ethereum through its custody services. This move comes in response to the increasing demand from institutional investors for a financial setup that can handle both traditional and digital assets.

On April 25, 2024, BNY Mellon Alcentra Global Credit Income 2024 Target Term Fund, Inc. (NYSE: DCF) announced that it will be giving out $0.035 per share of common stock as a monthly payout to investors who own shares by May 9, 2024. This payout is scheduled to be sent on May 23, 2024, with the fund planning to share most of its profits with shareholders on a monthly basis, depending on the performance of its investments and market conditions.

In addition to this monthly distribution announcement, BNY Mellon disclosed its investment in Bitcoin (BTC) ETFs through a filing with the US Securities and Exchange Commission (SEC). The bank revealed its stake in BTC ETFs managed by major investment companies like BlackRock and Grayscale, signaling a shift in the traditional finance sector towards embracing cryptocurrency as a viable investment option, particularly among institutional investors.

The approval of spot Bitcoin ETFs by the US SEC earlier this year has had a significant impact on the market, with Bitcoin reaching a new peak of $73,737 in March. Furthermore, Hong Kong’s approval for spot Bitcoin and Ethereum ETFs, set to begin trading on April 30, 2024, indicates a growing acceptance of cryptocurrencies globally.

Analysts are predicting that Bitcoin could reach $85,195 by May 23, 2024, suggesting a potential surge in value. There is also anticipation for the approval of a spot Ethereum ETF in the US, which could lead to another significant rally in the crypto market, particularly for Ethereum, which is currently trading below its peak value.