The world’s largest digital asset manager, Grayscale Investments, announced that its new Digital Large Cap Fund has become a company accountable to the US regulator, the US Securities and Exchange Commission (SEC). This means that the fund has received the status of a trust regulated by the SEC. And Grayscale will provide the Commission with all required reporting.
The Grayscale Digital Large Cap Fund will now file its reports and financial statements as 10-Q and 10-K with the SEC. Along with current Form 8-K reports, in addition to complying with all other obligations under the Exchange Act. In addition, accredited investors who have acquired shares through a private placement of the Fund will have an earlier liquidity opportunity. As the statutory period for holding private placement shares will be reduced from 12 months to 6 months.
The Fund is an investment product that allows investors to more effectively carry out strategic and tactical asset allocation. Including digital assets, using the Fund’s shares.
At the moment, the volume of investments in this product amounted to $ 348.2 million, or 1.17% of Grayscale Investments. The higher indicator is only in trusts based on Bitcoin ($ 21.5 billion), Ethereum ($ 6.68 billion) and Ethereum Classic ($ 608 million).
In addition, according to information from Grayscale, the company also filed with the SEC three more registration applications under Form 10 to obtain similar status for its Grayscale Bitcoin Cash Trust, Ethereum Classic Trust and Litecoin Trust, oriented, respectively, to work with assets such as BCH, LTC and ETC.
The key point of this news is quite simple: now these funds should become more attractive to investors.
Investor interest in Grayscale continues to grow
Commenting on the news, Grayscale Investments management spokesman Craig Salm said:
“Grayscale committed to offering the investment community a higher level of transparency and accountability. Which should complement the high demands and commitments that our products meet”.
He highlighted the importance of offering high quality standards to investors wishing to invest in the crypto space. According to him, “this fund will become the third company of Grayscale, accountable to the SEC. And additionally submitted by us applications indicate that investors continue to demonstrate a strong interest in the growing ecosystem of digital currencies within the framework of the existing regulatory framework. So, regulators continue to interact with participants market for this asset class”.
The move by Grayscale marks another milestone in the company’s plans to launch an exchange-traded cryptocurrency investment fund (ETF). This product could offer investors a higher degree of protection against excessive volatility in the crypto market.
According to Salm, such a Bitcoin ETF can only be approved in 2022. However, becoming an SEC-accountable trust could provide Grayscale with an edge over other competitors awaiting similar approval to register cryptocurrency ETFs.
As a reminder, Osprey Funds also filed an application with the SEC to register a Bitcoin trust.