Grayscale, the world’s largest crypto asset manager made another compliance breakthrough as three of its independent crypto trust namely Litecoin Trust ($LTCG), Bitcoin Cash Trust ($BCHG), and Ethereum Classic Trust ($ETCG) became SEC reporting companies. Earlier, this year, the asset managers Digital Large Cap Fund ($GDLC) also became an SEC reporting company. The recent induction takes the total number of Grayscale products that are SEC reporting companies to five.
Grayscale CEO Michael Sonnenshein called it a great regulatory win that would open the gates for crypto investment to new investors that are regulation-centric. He explained,
“This is something that investors not only have expressed wanting but something that we feel they deserve, He added, SEC reporting status has opened Grayscale to a wider audience of investors who are typically used to seeing that [type of reporting] when they think about making investments.”
The three independent crypto funds from Grayscale would see their lock-up period get reduced from 12-month to 6-months. Other benefits include a potential smoother transition to an Exchange Traded Fund (ETF), once the SEC clears the first crypto ETF in the US.
Will Grayscale Need a Change in Bitcoin ETF Plans?
Grayscale had earlier revealed plans of converting its premium Bitcoin product, the Bitcoin Trust Fund ($GBTC) into a Bitcoin ETF and has hired a former ETF veteran to lead the charge. However, the recent comments by SEC chair Gary Gensler could dampen the world’s largest asset managers’ ETF plans. Gensler has said a Futures based Bitcoin ETF is more likely to get the SEC nod than a physical one. Following this, a number of companies started filing for Bitcoin Futures ETF.
While ETF experts believe a physical Bitcoin ETF would eventually be passed but not before the futures ones. However, Grayscale would now need to either wait out for the SEC approval or pitch a new Futures ETF like several others.
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