On Friday, Grayscale Investments, the world’s largest digital currency asset manager in terms of assets under management (AUM), revealed that three trusts have been filed with the Securities and Exchange Commission (SEC) in order to become SEC reporting companies. The three trusts include individual crypto asset products such as the bitcoin cash trust, the litecoin trust, and the ethereum classic trust, which will join three other Grayscale trusts that are already SEC reporting companies.
Grayscale Investments has detailed that three individual crypto trusts are moving forward with their product growth cycle. The company announced on Friday that the Bitcoin Cash Trust (OTCQX: BCHG), Litecoin Trust (OTCQX: LTCN), and the Ethereum Classic Trust (OTCQX: ETCG) have been registered with the SEC in a new filing. The Form 10 registration will effectively convert the trusts into SEC reporting companies and eventually, Grayscale hopes these trusts will become exchange-traded funds (ETFs).
The digital currency asset manager stated that the trusts’ “product development pipeline” was described in a blog post Grayscale published last April. The blog post, called “Grayscale’s Intentions for a Bitcoin ETF,” mostly discusses the firm’s bitcoin (BTC)-based trust, but the firm further says the company will “ultimately convert each product into a digital currency ETF.”
Grayscale commanding six crypto trusts with SEC reporting status is a milestone, according to Craig Salm, Grayscale Investments’ vice president of legal operations. “This milestone reflects Grayscale’s continued commitment to offering transparent investment vehicles that voluntarily exceed standard reporting requirements, meet a heightened level of disclosure, and are subject to additional regulatory oversight,” Salm explained in a statement sent to MotleyBloggers.com News.
“As we await regulatory approval for a Bitcoin ETF, we remain focused on providing investors with opportunities to access the digital currency ecosystem through Grayscale’s secure, trusted family of products,” he added.
Highly-Anticipated SEC Decision Concerning Bitcoin ETF
As SEC reporting companies, the LTC, BCH, and ETC trusts will need to file additional reports and provide more financial statements. The trusts must follow all the rules under the U.S. Exchange Act (SEA) and file a Form 8-K.
The three trusts that were previously granted SEC reporting status include Grayscale’s Bitcoin Trust, Ethereum Trust, and the Digital Large Cap Fund. Grayscale products are handled by the MSRB-registered and FINRA/SIPC member Genesis Global Trading, Inc.
At the time of writing, Grayscale Investments is also waiting to see if the U.S. regulator will approve the firm’s bitcoin (BTC) ETF filing. Furthermore, Grayscale is among a dozen prospects that are attempting to get SEC approval for a bitcoin exchange-traded fund.
What do you think about Grayscale announcing that LTC, BCH, and ETC trusts are becoming SEC reporting companies and aim to be ETFs in the end? Let us know what you think about this subject in the comments section below.