Grayscale files Ethereum Trust for SEC reporting company status

Layer 1s • August 7, 2020, 3:17PM EDT
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Crypto asset manager Grayscale has filed for its Ethereum Trust to become a Securities and Exchange Commission (SEC) reporting company, according to a Thursday announcement.

The firm has filed a Form 10 with the regulator registering its shares in hopes of adding another registered crypto investment vehicle to its offerings.

Grayscale's Bitcoin Trust (GBTC) already has reporting company status, nabbing an approval earlier this year. While it wouldn't change the structure of the existing product, it would require Grayscale file quarterly and annual reports with the SEC in addition to its current reporting requirements. Additionally, a reporting company seal of approval means investors would have an earlier liquidity opportunity as the holding period for shares cuts from a year to six months. 

Grayscale gained FINRA approval to list shares of its Ethereum Trust (ETHE) in May of last year. The ETHE and GBTC products are both popular crypto products on the over-the-counter markets, with the Ethereum Trust trading over 400% premium to net asset value (NAV) from March to June. It's steadily declined since June highs reaching 900%. 

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Saniya More profile picture Saniya More

Saniya More (pronounced: Saan-ya Mo-ray) is a quadrilingual journalist at The Block. She got her master’s degree from the Columbia University Graduate School of Journalism and did her undergraduate degree at the S.I. Newhouse School of Public Communications, Syracuse University. Her work has appeared in CBS News, Bangkok Post, Thai Enquirer, Globalists, Byline Times and other publications. When she’s not chasing a story, you will most likely find her biking, tweeting, taking photos or creating Spotify playlists for every occasion.

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