The largest digital currency asset manager in the world in terms of assets under management (AUM), Grayscale Investments, disclosed on Friday that they have filed three trusts with the Securities and Exchange Commission (SEC) for the purpose of becoming SEC reporting companies. These three trusts comprise of individual crypto asset products, such as the litecoin trust, bitcoin cash trust and the ethereum classic trust. These will join three of the other Grayscale trusts that are already SEC reporting companies. The asset manager said that these three trusts were moving ahead in terms of their product growth cycle.
According to them, the new Form 10 registration with the SEC sill effective convert these three trusts into SEC reporting companies and eventually, they are hoping that these will be converted into exchange-traded funds (ETFs). The digital currency asset manager said that the ‘product development pipeline’ of these trusts had been described in a blog post that they had published back in April of last year. The title of the blog post was ‘Grayscale’s Intentions for a Bitcoin ETF’ and it mostly focuses on the Bitcoin-based trust of the company. However, the company did say that it would ultimately convert every product they have into a digital currency ETF.
According to the vice president of the legal operations at Grayscale Investments, Craig Salm, the fact that the company would have six crypto trusts with the status of SEC reporting companies would undoubtedly be a big milestone. He said that this milestone is a reflection of their continued commitment to providing transparent investment vehicles to their clients that voluntarily go beyond standard reporting requirements. They also meet an increased level of disclosure and are also subject to increased regulatory oversight. He also added that while they were waiting for the approval of a Bitcoin ETF, they were still focused on providing opportunities to investors for accessing the digital currency ecosystem via the trusted, secure family of products at Grayscale.
If the ETC, LTC and BCH trusts do become SEC reporting companies, they would be required to file additional reports and would also have to provide additional financial statements. The trusts would also be required to file a Form 8-K and would have to follow all the rules under the US Exchange Act (SEA). The three trusts of the company that have already been granted SEC reporting status include their Bitcoin Trust, Digital Large Cap Fund and Ethereum Trust.
The products of the asset manager are handled by Genesis Global Trading Inc., which is a member of FINRA/SPIC and is registered with the MSRB. Apart from this, Grayscale Investments is also waiting to hear from the SEC regarding their decision to approve the Bitcoin (BTC) ETF filing submitted by the company. It is important to note that Grayscale is amongst a dozen of companies that have attempted to get the approval of the US regulator for a bitcoin exchange-traded fund (ETF). The SEC has rejected such applications before because they do not consider it safe.