Key message: Grayscale, the US digital asset giant, has become an SEC reporting company. It received this approval for its Digital Large Cap Fund, which consists of Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Ethereum Classic.
Grayscale as an SEC-reportable company
Grayscale has been talked about several times in connection with cryptocurrencies, for example when it became the crypto sponsor of the New York Giants or when it added huge amounts of crypto assets to its funds. The giant announced today that there was an approval of the application, which was filed on October 2, 2020. It was an SEC Form 10, which is a general securities registration form for a company with more than $10 million in assets held by at least 750 shareholders.
This approval will definitely improve the marketability of the Digital Large Cap Fund. Many institutional investors were concerned about the legal risks. Since it is currently an SEC-regulated company, the trust’s share period will be reduced from 12 months to 6 months and quarterly and annual information will need to be filed via forms and other audit reports. Thus, Grayscale’s management and shareholders are required to report beneficial ownership.