Grayscale Investments’ Ethereum Trust on Monday, October 12, 2020, had announced its achievement of attaining an SEC reporting company status. This signifies that Ethereum Trust is now an official SEC reporting company while also the second digital currency investment company to receive such ranking.
Grayscale’s BTC Trust, First Investment Product to Receive An SEC Status
Grayscale’s BTC Trust (GBTC) is the first investment product to attain the status after its filing became effective on January 21 of 2020. SEC reporting company is attained upon “registration under Section 12(g) of the Securities Exchange Act of 1934, as amended (the Exchange Act).”
The digital asset company can now “file its quarterly and annual reports, including its financial statements, on Form 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.”
Although, Grayscale does note that “this voluntary filing should not be confused as an effort to classify Grayscale’s Ethereum Trust as an exchange-traded fund (ETF). The structure of the Trust will not change and it will continue to not operate a redemption program nor trade on a national securities exchange.”
Lucrative Way On Gaining Ethereum’s Exposure
The Grayscale’s Ethereum Trust is an Ethereum fan. Its shares can provide its investors with a lucrative way of gaining Ethereum’s exposure.
As a result of the registration, investors who currently own or purchase the Trust shares will have an earlier liquidity opportunity. Under the securities act, the holding period of shares purchased through private placement currently ranges from 12 months to 6 months.
Grayscale’s statement clarified that the investment company is yet to meet its investment objective, and the Shares quoted on OTCQX have not reflected the value of ETH held by the Trust, less the Trust’s expenses, and other liabilities. Instead, the shares have traded at a substantial premium over such value.