Grayscale investments announced recently that their Ethereum Trust is now officially a SEC reporting company. It is only their second trust fund to be classified as such after that of Bitcoin. As a trust fund Grayscale is mostly linked with Bitcoin as it tops on the list of their AUM~Assets under management, it however still holds a number of other digital currencies, such as Ethereum which is their second highest ranking asset in their AUM
Key highlights;
The Trust is solely and passively invested in Ethereum. The shares of the Trust are designed to provide investors with a cost-effective and convenient way to gain investment exposure to ETH.** Now, the Trust is also the second digital currency investment vehicle to become an SEC reporting company, following Grayscale® Bitcoin Trust on January 21, 2020.
Additionally, accredited investors who own or purchase shares from the Trust’s private placement now have an earlier liquidity opportunity, as the statutory holding period of shares purchased through the private placement will be reduced from 12 months to 6 months, provided the other requirements under Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”), have been satisfied.***
This means investors would not have to wait for 1 year to liquidate their assets, as the lockup period has been reduced to 6 months.
Note: This would only go into effect 90 days into the trust being classified as a reporting company.
The end note;
*This voluntary filing should not be confused as an effort to classify Grayscale Ethereum Trust as an exchange traded fund (ETF). The structure of the Trust will not change and it will continue to not operate a redemption program nor trade on a national securities exchange.
Source -
https://www.globenewswire.com/news-release/2020/10/12/2106846/0/en/Grayscale-Ethereum-Trust-Becomes-SEC-Reporting-Company.htmlWhat do you think of this move, and how would it benefit investors and increase the exposure of Ethereum to institutional funds?
