Grayscale’s Ethereum Trust gains SEC reporting firm status

Grayscale Investments states that the registration statement on Form 10 that it filed with the United States Securities and Exchange Commission (SEC) on behalf of the Ethereum Trust has become effective. This means that Ethereum Trust is now an official SEC reporting company and the second digital currency investment product to reach the milestone.

Grayscale’s BTC Trust (GBTC) is the first investment product to gain status after its filing went into effect on January 21, 2020. An organization becomes a SEC reporting firm or a corporation upon registration. under Section 12 (g) of the Stock Exchange Act of 1934, as amended (the Exchange Act). “

As a result, the Grayscale Ethereum Trust will now “submit 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. “

However, the largest digital currency asset manager in the world says that “this voluntary deposit is not to be confused as an effort to classify Grayscale Ethereum Trust as an exchange-traded fund (ETF). The Trust’s structure will not change and will continue not to operate a redemption program or trade on a national stock exchange. “

Meanwhile, the statement released by Grayscale Investments also explains that “the Trust’s shares are designed to provide investors with a convenient and cost-effective way to gain investment exposure to ETH.”

However, the statement still highlights some important information about the actions:

The Ethereum Trust will offer a private placement to accredited investors. The Trust’s investment objective is that the Shares (based on ETH per Share) reflect the value of ETH held by the Trust, determined by reference to the Index Price (as defined in the Disclosure Statement), less the expenses of the Trust and others. liabilities.

The statement clarifies that the grayscale has yet to achieve “its investment objective and the shares listed on OTCQX have not reflected the value of ETH held by the Trust, minus the expenses and other liabilities of the Trust”. Instead, the shares were “traded at a substantial premium over that value”.

Grayscale’s latest announcement, which tops the list of publicly traded companies that hold bitcoin, comes as U.S. regulators and statutory bodies are increasing pressure on cryptocurrency companies that don’t adhere to the Securities Act.

What does Ethereum Trust’s achievement of reporting company status mean for other altcoins? Tell us what you think in the comments section below?

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