Digital assets could create a meaningful source of revenue for Bank of New York Mellon Corp. as soon as next year, according to Chief Financial Officer Emily Portney.
The firm is collaborating with Fireblocks, a unicorn fintech that enables financial institutions to store, move and issue cryptocurrencies, which is “foundational to everything we’re going to do,” Portney said in an interview on Tuesday after the firm reported fourth quarter results. The bank is now awaiting clarity from global regulators on the rules governing such crypto assets.
“There are proposals in front of the Securities and Exchange Commission that haven’t yet been approved on whether ETFs can actually hold digital assets directly versus futures,” she said, adding that clarity could come in the first half of this year and provide an important turning point.
Launching the first physically backed Bitcoin ETF remains the holy grail for investment fund providers, who see such products as an entry into crypto assets for millions of individual investors. However, the SEC has rejected several proposals so far, saying they failed to meet requirements to prevent fraudulent and manipulative practices.
The regulator offered some hope when it approved a futures-backed Bitcoin ETF in October. The ProShares Bitcoin Strategy exchange-traded fund became the second most-heavily traded ETF debut on record, after filing under mutual fund rules that SEC Chairman Gary Gensler has said provide significant investor protections. Yet its fortunes quickly turned, and it tumbled 30% in its first two months to become one of the 10 worst launches ever.
While digital assets won’t be a meaningful contributor to revenue until probably 2023 or 2024, BNY Mellon is “leading the charge” in crypto asset innovation, Portnoy said.
IRAs now hold nearly twice the assets of 401(k) plans — and most of that money didn't arrive through annual contributions.
A new survey finds that many women prioritize financial security but continue to leave savings in accounts that may not keep pace with inflation.
Roundhill, Bitwise and GraniteShares funds remain on hold while the agency weighs how novel ETFs should be regulated.
"Shares of alternative assets managers have lagged this year as investors grow wary of private-credit exposure."
The fintech platform is touting a new AI-free Planning Observations feature, which draws on IRS tax records to uncover opportunities for advisors.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
