Still, the world’s largest digital currency asset manager elaborates that “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.”
Meanwhile, the statement released by Grayscale Investments also explains that “the shares of the Trust are designed to provide investors with a cost-effective and convenient way to gain investment exposure to ETH.”
Nevertheless, the statement still highlights some important information about the shares:
The Ethereum Trust will offer a private placement to accredited investors. The investment objective of the Trust is for the Shares (based on ETH per Share) to reflect the value of ETH held by the Trust, determined by reference to the Index Price (as defined in the Information Statement), less the Trust’s expenses and other liabilities.
The statement clarifies that Grayscale is yet to meet “its investment objective and the Shares quoted on OTCQX have not reflected the value of ETH held by the Trust, less the Trust’s expenses and other liabilities.” Instead, the shares have “traded at a substantial premium over such value.”
The latest announcement by Grayscale, which tops the list of publicly listed companies that hold bitcoin, comes as U.S. regulators and statutory bodies are increasing pressure on cryptocurrency businesses that are not adhering to the Securities Act.
What does the attainment of the reporting company status by the Ethereum Trust mean for other altcoins? Tell us what you think in the comments section below?
The post Grayscale’s Ethereum Trust Attains SEC Reporting Company Status appeared first on Bitcoin News.
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