Grayscale’s ETC, BCH and LTC Trusts Now SEC Reporting Companies
According to Forbes, Grayscale’s Bitcoin Cash, Litecoin and Ethereum Classic Trusts now report to the SEC, which makes it easier for them in the future to get approvals to become ETFs.
Grayscale Investments is world’s biggest crypto asset management firm that has almost $50 million in crypto asset under management and is affiliated to the founder and CEO of the Digital Currency Group, Barry Silbert.
EXCLUSIVE: Grayscale paves the way for Ethereum Classic, Bitcoin Cash and Litecoin ETFs while the fate of Bitcoin’s first lies in the balance: by @Steven_Ehrlichhttps://t.co/BBxCtL6KBH— Forbes Crypto (@ForbesCrypto) September 10, 2021
Way is paved for ETC, BTC and LTC ETFs
Until now, Grayscale has only had its Bitcoin, Ethereum Trusts (GBTC and ETHE), as well as its Digital Large Cap Fund have been sending their financial reports to the US Securities and Exchange Commission in order to meet the requirements mentioned in in the Securities Exchange Act of 1934.
This fact makes them regulators in the same way as publicly-traded companies on the Nasdaq and the NYSE.
According to the company’s CEO Michael Sonnenshein, Grayscale investors have been desiring this to happen. He also stated that turning these crypto trusts into SEC-reporting companies opens them for potentially a wider inflow of investors who expect to see this type of reporting to the regulator.
Among other benefits for these Grayscale Trusts, the lockup period for their shares will now be reduced from a year to only six months and it will be easier to convert them into exchange-traded funds with credibility from the SEC.
Grayscale’s Bitcoin ETF still not approved
However, the Bitcoin ETF for which the company has filed, along with more than twenty other entities, seems to be hitting more snags as the SEC chairman Gary Gensler has given preference to Bitcoin futures ETF rather than BTC spot ones. He believes that the former offers more protection to investors and Sonnenshein recently opposed that opinion while appearing on CNBC’s Squawk Box show.
He believes that investors should be given a choice between a Bitcoin spot ETF and a futures ETF. Grayscale has been filing for a BTC exchange-traded fund with the SEC over the past few years but still has had none of it approved.Source