Grayscale Investments manages the largest cryptocurrency fund, Grayscale Bitcoin Trust. Yuriko Nakao
Three trusts managed by Grayscale Investments, a crypto asset manager, have been made SEC reporting entities.
The Grayscale Bitcoin Cash Trust and Ethereum Classic Trust have now been subject to reporting requirements to the SEC, in a manner similar to publicly traded shares.
Grayscale could benefit from these changes if it decides to convert the trusts to ETFs.
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Grayscale Investments' largest digital asset manager Grayscale has three products that offer investors exposure to cryptocurrency. Forbes reports that these companies have been made SEC reporting entities. This could strengthen Grayscale's relationship to the agency as it plans to convert the trusts to exchange-traded funds.
Forbes reported Friday that Grayscale Bitcoin Cash Trust (Grayscale Ethereum Classic Trust), Grayscale Litecoin Trust and Grayscale Bitcoin Cash Trust have now been subject to reporting requirements to the SEC, similar to companies trading on public exchanges.
Grayscale's Bitcoin Trust and Ethereum Trust are joined by the products. They must file financial statements on a regular basis and comply with other requirements under Section 1934 of the Securities Exchange Act.
Grayscale CEO Michael Sonnenshein stated to Forbes that Grayscale is now open to investors who have grown accustomed to looking at SEC reports before making investment decisions.
According to the report, these changes will also help build trust and credibility with Grayscale when Grayscale decides to convert trusts into ETFs that are available to the retail market.
Grayscale is preparing to turn the $26 billion Grayscale Bitcoin Trust into an ETF. It is the world's biggest bitcoin fund. In March, Sonnenshein stated to Insider that Grayscale was interested in creating a US bitcoin ETF if the regulators granted permission.
Grayscale is not one of the 20 entities that have submitted an ETF application to the SEC. According to Forbes, Grayscale prefers to be a follower and rely upon its market size and reputation in order to keep a dominant position.
