Digital currency asset manager, Grayscale Investments announced today that its investment entity, Grayscale Ethereum Trust has been registered as a United States Securities and Exchange Commission (SEC) company, making the Trust’s shares compliant with the SEC’S “Exchange Act.” This means the Trust will now file its financial statements and its annual and quarterly reports with the SEC.
Grayscale Ethereum Trust enables investors to gain access to the price movement of ETH in the form of traditional security. In other words, the purpose of the ETH Trust is to provide investors a cost-effective way to invest in ETH, while avoiding directly holding ETH.
Under the SEC’s Securities Act Provision though, investors can hold shares purchased through private entities for six months instead of 12, which means that investors who own or purchase the ETH Trust shares can liquidate sooner than the rest of the market. At the time of writing, Ethereum was worth approximately $380 which was up by 2.5% in the last 24 hours.
As per the SEC guidelines though, structure of ETH Trust will not change and it will not trade on a national securities exchange. Previously, another Grayscale sponsored entity, its Bitcoin Trust, which allows Grayscale investors to gain BTC exposure, had also been registered as an SEC reporting company. In addition to this, under the registration, BTC Trust’s shares have been restricted securities that are not resold, except in transactions exempted from the Securities Act.
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