Grayscale Investments has voluntarily publicly filed a Registration Statement on Form 10 with the U.S. Securities and Exchange Commission (SEC) for its Ethereum Trust (ETHE) to obtain reporting status.
If the filing is approved by the SEC, the Ethereum Trust will be the second cryptoasset investment vehicle ever to obtain the status of a reporting company with the regulator, behind only Grayscale’s Bitcoin Investment Trust (GBTC).
Grayscale Investments is a subsidiary of the Digital Currency Group, that was established in 2013. It manages a number of cryptocurrency investment funds that allow investors to gain exposure to various cryptoassets without having to manage their private keys. Grayscale manages these funds for a fee.
Currently, it lets investors gain exposure through various funds to BTC, ETH, XRP, ZEC, ETC, LTC, XLM, and ZEN. Back in June, Grayscale’s assets under management surpassed the $4 billion mark thanks to growing institutional interest in bitcoin and ether. The crypto space’s rally late last month helped it get to $5.7 billion.
In a note sent to investors, Grayscale emphasized the filing was voluntary and that if effective accredited investors “who purchased shares in Grayscale Ethereum Trust’s private placement would have an earlier liquidity opportunity, as the statutory holding period would be reduced from twelve months to six months.”
In an announcement post published on Medium, the firm noted that Q2 2020 statistics show investments into Grayscale’s Ethereum Trust hit $10.4 million, adding:
In fact, demand for Grayscale Ethereum Trust accounted for almost 15% of total inflows into Grayscale products during our biggest quarter yet.
As reported, the cryptocurrency asset manager registered a record quarter in Q2 2020, adding a total of $905 million from investors, who mainly focused on its bitcoin and ether investment products. The figure nearly doubled its previous record high of $503.7 million in the first quarter of the year.
In the first half of this year Grayscale Investment has revealed it had record inflows, of a total of $1.4 billion. Addressing the filing on social media Barry Silbert, founder of the Digital Currency Group, called the attempt a “milestone.”
Featured image via Pixabay.