State Street Named Fund Administrator and Transfer Agent for VanEck’s Bitcoin Trust ETF

Rhea-AI Summary

State Street Corporation (NYSE: STT) has been appointed as the fund administrator and transfer agent for the VanEck Bitcoin Trust, a pending bitcoin ETF in the U.S. The Trust aims to reflect the performance of the MVIS® CryptoCompare Bitcoin Benchmark Rate. With a vision to enhance financial and digital asset markets, State Street will provide various services including ETF basket operations and fund accounting. State Street remains a leader in ETF servicing, managing close to 70% of U.S. ETF assets.

Positive

• State Street appointed as fund administrator for the VanEck Bitcoin Trust, a potential first U.S. bitcoin ETF.
• Expanded collaboration with VanEck emphasizes the company's commitment to digital asset innovation.
• State Street maintains its position as the largest global ETF servicer, handling nearly 70% of U.S. ETF assets.

Negative

• None.

State Street Corporation (NYSE:STT) today announced that it has been appointed as the fund administrator and transfer agent of the VanEck Bitcoin Trust (‘The Trust’) a new bitcoin exchange-traded fund (ETF) that is currently pending approval by the US Securities and Exchange Commission (SEC).

The Trust is proposed to be the first of its kind US listed ETF offering exposure to bitcoin. The Trust’s investment objective is to reflect the performance of the MVIS® CryptoCompare Bitcoin Benchmark Rate less the expenses of the Trust’s operations.

“VanEck is committed to support financial innovation in the digital assets space. We believe that, when the ETF is approved, the Trust will improve both financial and digital asset markets by providing investors with a simple, efficient, and an institutionally-backed vehicle to gain access to the Bitcoin markets,” said Gabor Gurbacs, Director of Digital Assets Strategy at VanEck.

Pending approval by the SEC, State Street will continue to work closely with VanEck on all aspects of the launch and provide services including ETF basket operations, custody of the ETF shares, fund accounting, order-taking and transfer agency.

“We are pleased to continue expanding our relationship with VanEck to support their innovative advancements in the ETF market; including the VanEck Bitcoin Trust,” said Nadine Chakar, head of State Street Global Markets. “We see the implementation of digital assets as one of the most transformational forces affecting our industry over the next 5 years, and we are already very actively engaged with clients and partners in delivering solutions. The work we have underway with VanEck is another example of State Street continuing to deliver on our broader strategy of building out the crypto and digital assets ecosystem, which is focused on creating digital cash; custody and post trade services; trading; and token issuance for these new asset-types.”

State Street has been actively engaged in the digital asset space for a number of years including working with Gemini since 2019 on a digital asset pilot, as well as being one of the co-founders in Fnality, an industry consortium developing a regulated wholesale payment system leveraging blockchain technology. In 2018, State Street partnered with Lukka, a crypto reference data provider, valuation and reconciliation tool, to co-develop comprehensive digital asset fund administration services. And in late 2020, State Street led Lukka’s series C funding, signifying the growing importance of crypto assets in the financial services industry.

VanEck began entrusting State Street with its Australia ETF business in 2016. Since that time, it consolidated services for its Ireland, Netherlands and US based ETFs to State Street. Today, State Street remains the largest global ETF servicer, servicing close to 70% of US ETF assets, and is the only provider serving all major ETF regions.*

* Statistics compiled using ETFGI’s ETF Monthly Insights as-of July 2020 and State Street’s internal research

About State Street

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $38.8 trillion in assets under custody and/or administration and $3.5 trillion* in assets under management as of December 31, 2020, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

*Assets under management as of December 31, 2020 includes approximately $75 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

© 2021 State Street Corporation - All Rights Reserved

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FAQ

What role did State Street play in the VanEck Bitcoin Trust?

State Street is the fund administrator and transfer agent for the VanEck Bitcoin Trust, a pending bitcoin ETF.

When will the VanEck Bitcoin Trust be launched?

The VanEck Bitcoin Trust is currently pending approval by the U.S. Securities and Exchange Commission (SEC).

What is the investment objective of the VanEck Bitcoin Trust?

The Trust aims to reflect the performance of the MVIS® CryptoCompare Bitcoin Benchmark Rate minus operational expenses.

How significant is State Street in the ETF market?

State Street is the largest global ETF servicer, managing close to 70% of U.S. ETF assets.

What services will State Street provide for the VanEck Bitcoin Trust?

State Street will handle ETF basket operations, custody of ETF shares, fund accounting, order-taking, and transfer agency.