The world’s largest digital currency asset manager, Grayscale Investments, recently announced that it has voluntarily filed Form 10 registration statement for its Ethereum Trust with the United States Securities and Exchange Commission (SEC).
The Form 10 filing will now be subjected to a review by the SEC, and if it is approved and effected, the Grayscale Ethereum Trust will then be listed as a reporting company with the SEC, and its shares will also be registered with the commission.
The Ethereum Trust is an investment product that is sponsored by Grayscale, which seeks to help its clients avoid all the challenges that may be associated with directly buying, selling, and storing Ethereum on their own by offering it to clients as traditional security. That way, investors can trade on ETH without actually buying and selling it themselves.
If the Trust attains the status of a reporting company with SEC, it will enable its accredited investors and individuals with a high net worth who have purchased the company’s shares to liquidate them after six months. This is relatively shorter than the current statutory holding period of 12 months for private placement shares.
The Ethereum Trust currently trades its shares Over the Cunter (OTC). It also fully complies with every regulation binding them, including the OTC Markets Alternative Standard (ARS) by publishing quarterly and annual reports in addition to audited financial statements.
If the filing is approved by the SEC, the Trust will be able to publish its reports and financial statements just like other corporate companies. Additionally, the firm will have to comply with every regulatory requirement that is stipulated by the SEC.
However, Grayscale will have to wait for the regulator to respond to its filing. Although the SEC has a 60 days timeline within which it can respond to the filing, sometimes, it takes longer than expected.
The Form 10 will make the Grayscale Ethereum Trust the second crypto-related investment product to become a reporting company with SEC. The first to attain that status is the firm’s Bitcoin Trust, which the firm had filed in the final quarter of last year.
