Grayscale’s Three Trusts Are Now SEC Reported

Highlights:

  • Grayscale firm is a trusted authority on digital currency investing, advising and management.
  • Grayscale has various trusts such as the Bitcoin cash trust, Ethereum Classic trust and Litecoin trust.
  • The company has filed with the Securities and Exchange Commission for approval of exchange traded funds.

What did Grayscale announce?

Grayscale has announced that it has filed for exchange traded funds with the Securities and Exchange Commission, the U.S financial regulator. It has filed for three of its trusts, the Bitcoin Cash trust, the Ethereum Classic trust and the Litecoin trust.

These three trusts have become SEC-reporting companies, thus building steps towards receiving approvals for exchange traded funds. Thus, the act of reporting to the SEC like publicly traded companies fortifies a relationship with it to gain approval if and when it decides to launch exchange-traded funds. Thus, the three trusts join Grayscale Bitcoin trust and Grayscale Ethereum trust to become SEC reported companies. They must disclose their financial statements and other results under the Securities Exchange Act of 1934

Being SEC reporting companies gives the public more confidence in the authenticity and performance of the company. Thus, demand for their future exchange-traded funds will be high due to this action taken by the company. Moreover, the company will enjoy goodwill in the market as the financial statements will be publicly available. Thus, all the three companies will stand to gain from the move made by the parent company, Grayscale.

trust
Source: Bitcoinik

What is the BCH trust according to SEC filings?

According to filings of the Securities and Exchange Commission, the Grayscale Bitcoin cash trust is an ‘investment vehicle’ that enables investors and retailers to gain access to Bitcoin cash without having to buy the digital asset directly. The trust provides access to Bitcoin cash in the form of issuance of securities through private channels. The securities do not provide exposure to Bitcoin Cash directly but they are designed to reflect the value of Bitcoin cash as per the current market price. The value of the shares will be equal to the value of BCH less the expenses and liabilities of the Grayscale Bitcoin Cash trust.

Grayscale Bitcoin Cash trust
Source: Bitcoin News

What is the Ethereum Classic trust according to SEC filings?

According to filings of the Securities and Exchange Commission, the Grayscale Ethereum Classic trust is an ‘investment vehicle’ that enables investors and retailers to gain access to Ethereum Classic without having to buy the digital asset directly. The trust provides access to Ethereum Classic in the form of issuance of securities through private channels. The securities do not provide exposure to Ethereum Classic directly but they are designed to reflect the value of Ethereum Classic as per the current market price. The value of the shares will be equal to the value of the digital currency less the expenses and liabilities of the Grayscale Ethereum Classic trust.

Grayscale Ethereum Classic trust
Source: Japanauto

What is the Litecoin trust according to SEC filings?

According to filings of the Securities and Exchange Commission, the Grayscale Litecoin trust is an ‘investment vehicle’ that enables investors and retailers to gain access to Litecoin without having to buy the digital asset directly. The trust provides access to Litecoin in the form of issuance of securities through private channels. The securities do not provide exposure to Litecoin directly but they are designed to reflect the value of Litecoin as per the current market price. The value of the shares will be equal to the value of LTC less the expenses and liabilities of the Grayscale Litecoin trust.

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