grayscale’s-ethereum-trust-joins-gbtc-as-sec-registered-reporting-company

Grayscale’s Ethereum Trust joins GBTC as SEC-registered reporting company

Grayscale’s Ethereum Trust is now a registered reporting company with the Securities and Exchange Commission (SEC).

The Form 10 filing for the Grayscale Ethereum Trust took effect today, meaning it will now file quarterly and annual reports that include 10-K and 10Q disclosures. Grayscale first filed for the status in August.

It’s the second product from the crypto asset manager to receive the status, joining the Grayscale Bitcoin Trust (GBTC). The bitcoin offering became a reporting company in January of this year — a first for crypto investment vehicles. In the case of the bitcoin trust, Grayscale decided to pursue the registration to signal a commitment to a higher compliance standard, opting to register rather than accept a private placement exemption from the SEC.

Grayscale also has plans to shorten the holding period of shares purchased through private placement to 6 months. Accredited investors purchasing through private placement currently have to wait a year-long holding period. The firm made similar changes with its bitcoin offering when it received reporting company status.

The distinction doesn’t change the structure of the existing product, a trust solely invested in Ethereum as a way for investors to gain exposure to ETH. Shares in the trust reached a year-to-date high of $239 in June before taking a steep decline in the following weeks. Today shares are priced around $56. 

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© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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