3 Grayscale digital asset trusts have become SEC-reporting companies as the crypto asset manager positions for ETF approval from the regulator

Advertisement
3 Grayscale digital asset trusts have become SEC-reporting companies as the crypto asset manager positions for ETF approval from the regulator
Grayscale Investments runs the largest cryptocurrency fund, Grayscale Bitcoin Trust. Yuriko Nakao
  • Three trusts run by crypto asset manager Grayscale Investments have become SEC reporting companies.
  • The Grayscale Bitcoin Cash Trust, Ethereum Classic Trust, and Litecoin Trust now have reporting obligations to the SEC similar to companies with publicly traded shares.
  • The changes could fortify Grayscale's relationship with the SEC when it moves to convert the trusts into ETFs.

Three products from Grayscale Investments, the largest digital asset manager, that give investors exposure to cryptocurrencies, have become SEC reporting companies, according to Forbes, a move that could fortify Grayscale's relationship with the agency when it moves to convert the trusts into exchange-traded funds.

Grayscale Bitcoin Cash Trust, Grayscale Ethereum Classic Trust and Grayscale Litecoin Trust now have reporting obligations to the SEC similar to companies with shares that are publicly traded on exchanges, Forbes reported Friday.

The products join Grayscale's Bitcoin Trust, Ethereum Trust and Digital Large Cap Fund in having to file regular financial statements and meet other requirements under the Securities Exchange Act of 1934.

Advertisement

Creating SEC reporting companies opens Grayscale to a wider audience of investors who are used to seeing SEC reports when they consider making investments, Grayscale CEO Michael Sonnenshein told Forbes.

The changes should also build relationships and credibility with the agency when Grayscale eventually moves to convert the trusts into ETFs, which are accessible to the retail market, the report said.

Grayscale has been preparing to convert the world's largest bitcoin fund, its flagship $26 billion Grayscale Bitcoin Trust, into an ETF. Sonnenshein told Insider in March that Grayscale would be interested in launching a US bitcoin ETF if regulators gave the green light to such products.

Advertisement

Grayscale is not among the more than 20 entities that have filed an ETF application with the SEC. The Forbes report said Grayscale's preference is to be a fast follower and rely on its large market size and reputation to maintain a dominant position.

{{}}