Grayscale Investments is the corporate entity behind the most popular cryptocurrencies trusts. It provides investors with exposure to digital assets markets with no need to purchase crypto tokens directly. Now it may achieve a new standard in its relationship with the world's strictest regulator, the U.S. Securities and Exchange Commission.
ETH investors may enjoy earlier liquidation opportunity
According to the official statement by Grayscale Investments, the company has filed U.S. SEC Form 10, which is one of the voluntary filings used for public reporting. If this application is approved, Grayscale Ethereum Trust (ETHE) will obtain the status of an SEC reporting company.
That said, its shares may be registered pursuant to Section 12(g) of the Securities Exchange Act of 1934. However, this registration will not mean classification of ETHE as an exchange-traded fund, or ETF. This means that Grayscale Investments will not launch the redemption program and its products will not be listed on the securities exchange.
One of the most meaningful aspects of the prospective registration is the significant decrease in the liquidation opportunity term. If ETHE is registered as an SEC reporting instrument, the statutory holding period for this asset would be reduced from 12 months to 6 months.
Previously, Grayscale Investments successfully filed U.S. SEC Form 10 for its Bitcoin-based product, Grayscale Bitcoin Trust Stocks (GBTC).
Registration would add plausibility to Grayscale products
Being an over-the-counter asset now, Grayscale Investments publishes only annual reports and audited financial statements pursuant to the OTC Markets Alternative Reporting Standard (ARS). After registration it would be obliged to disclose much more detailed and sophisticated reporting in accordance with the Exchanges Act.
Grayscale Investments is offering very popular investing products, the stocks of cryptocurrency trusts. Each stock represents a share in Grayscale cryptocurrency bags.
As covered recently by CryptoComes, Grayscale Investments has surpassed the unbelievable level of $5 bln under management.
Despite Bitcoin (BTC) and Ethereum (ETH) remaining its main assets, it is aggressively adding XRP, Litecoin (LTC) and Bitcoin Cash (BCH) positions.