Grayscale Investments, one of the dominant issuers of cryptocurrency index funds, said that it filed Registration Statements on Form 10 with the Securities and Exchange Commission (SEC) pertaining to three of its crypto trusts.
Should the registration statements filed by Grayscale become effective, the aforementioned trusts would become SEC reporting companies, potentially expanding the universe of investors interested in these products.
New York-based Grayscale has six SEC reporting products: the Grayscale® Bitcoin Trust, the Grayscale® Bitcoin Cash Trust, the Grayscale® Digital Large Cap Fund, the Grayscale® Ethereum Trust, the Grayscale® Ethereum Classic Trust, and the Grayscale® Litecoin Trust.
The Grayscale Bitcoin Trust (GBTC) is the largest digital currency index fund trading in the U.S., while the Grayscale Ethereum Trust (ETHE), which follows the CoinDesk Ether Price Index, is one of the most popular ethereum index products. The issuer is hoping to convert GBTC to the exchange traded fund structure, which would almost certainly be one of the most momentous occasions in ETF industry history if successful.
The Grayscale Horizen Trust, the Grayscale Stellar Lumens Trust, and the Grayscale Zcash Trust publish annual and quarterly reports pursuant to OTC Markets Alternative Reporting Standard (ARS).
“Should any of the Registration Statements become effective, the applicable product would file these reports and financial statements as 10-Qs and 10-Ks with the SEC, along with current reports on Form 8-K, in addition to complying with all other obligations under the Exchange Act,” notes Grayscale.
Currently, the Grayscale Horizen Trust, the Grayscale Stellar Lumens Trust, and the Grayscale Zcash Trust are accessible to investors via private placements at brokerage firms, but that limits the audience of interested investors.
Combined, the three trusts have about $75 million in assets under management. Stellar, a decentralized network, is the largest of three digital assets tracked by the Grayscale trusts with a market value of $8.4 billion. It’s considered to be a decentralized finance (DeFi) concept.
“Stellar serves as a decentralized exchange and marketplace, with a built-in order book that tracks ownership of Stellar assets. Platform users can manage buy/sell orders, as well as select and set their preferred assets in settlement,” according to Coinmarketcap.com.
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