Grayscale Bitcoin Cash Trust (BCHG), Grayscale Ethereum Classic Trust (ETCG) and Grayscale Litecoin Trust (LTCN) have been granted the status of SEC-regulated trusts by the U.S. Securities and Exchange Commission (SEC). Forbes reports.
The digital-asset manager Grayscale Investments has pledged to provide the regulator with audited 10-K and 10-Q reports.
The move will shorten the holding period for investors in the shares of these products before sale—from 12 to six months.
Currently the asset manager prepares product disclosures based on Bitcoin, Ethereum and a basket of digital assets in Grayscale Digital Large Cap. Plans to include in this list trusts based on Bitcoin Cash (BCH), Ethereum Classic (ETC) and Litecoin (LTC) were announced in June.
\”This move will broaden the audience for those who are used to analysing such disclosures when making investment decisions,\” commented Grayscale’s CEO Mike Sonnenshein.
The Grayscale Investments CEO partly supported Chairman SEC Gary Gensler’s stance on the requirements under which the agency could approve a Bitcoin-ETF. Earlier the Chairman stated that this product should be based on futures tied to the leading cryptocurrency and also take into account the provisions of the Investment Company Act of 1940.
\”We would like the SEC to level the playing field. There should be room for both futures-based and spot-based products. Investors should have a choice. The SEC would take a short-sighted stance if it favored ETFs registered under one set of laws over another,\” explained Sonnenshein.
In March, Grayscale Investments opened nine job openings referencing the exchange-traded fund.
A month later the company announced plans to transform the Bitcoin Trust into an ETF based on the leading cryptocurrency.
In July, Grayscale Investments signed an agreement with Bank of New York Mellon. Under the agreement, the financial group will serve, among other duties, as transfer agent and will handle ETF administration after converting GBTC into an exchange-traded fund.
As of this writing, Grayscale had not filed an application to register an ETF.
As reported recently, GBTC shares were acquired by US Global Investors, Miller Opportunity Trust, Morgan Stanley and Wealthfront.
In June, Grayscale Investments added 13 additional assets to the list on which it may offer new investment trusts to clients in the future.
In July, the company unveiled a DeFi-focused index and trust.
Subscribe to ForkLog news on Telegram: ForkLog Feed — full news feed, ForkLog — the most important news, infographics and opinions