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New York, Aug. 06, 2020 (GLOBE NEWSWIRE) — Grayscale Investments®, the world’s largest digital currency asset manager and sponsor of Grayscale® Ethereum Trust (OTCQX: ETHE), today announced that it has publicly filed a Registration Statement on Form 10 with the Securities and Exchange Commission (SEC) on behalf of Grayscale Ethereum Trust.*
This is a voluntary filing that is subject to SEC review. If the Registration Statement becomes effective, it would designate the Trust as an SEC reporting company and register its shares pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended.** It would also designate the Trust as the second digital currency investment vehicle to attain the status of a reporting company by the SEC, following Grayscale® Bitcoin Trust as the first.
Additionally, if the Registration Statement become effective, accredited investors who purchased shares in the Trust’s private placement would have an earlier liquidity opportunity, as the statutory holding period of private placement shares would be reduced from 12 months to 6 months, under Rule 144 of the Securities Act of 1933, as amended (the Securities Act).***
The Trust currently publishes quarterly and annual reports as well as audited financial statements pursuant to the OTC Markets Alternative Reporting Standard (ARS). Should the Registration Statement become effective, the Trust would file these reports and financial statements as 10-Qs and 10-Ks with the SEC, along with current reports on Form 8-K, in addition to complying with all other obligations under the Exchange Act.
The Trust is an investment product that offers investors exposure to Ethereum in the form of security, avoiding the challenges of buying, storing, and safekeeping Ethereum directly.
*The Trust offers a private placement to accredited investors. The investment objective of the Trust is for the Shares to reflect the value of Ethereum held by the Trust, less the Trust’s expenses and other liabilities. The Shares have historically traded at a substantial premium over such value and the Trust has been unable to meet its investment objective.
**This voluntary filing should not be confused as an effort to classify Grayscale Ethereum Trust as an exchange traded fund (ETF). The structure of the Trust will not change and it will continue to not operate a redemption program nor trade on a national securities exchange.
***The holding period reduction would go effective after Grayscale Ethereum Trust has been a reporting company for at least 90 days and has satisfied the other requirements under Rule 144 of the Securities Act.
This press release is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
About Grayscale Investments®
Grayscale Investments is the world’s largest digital currency asset manager, with more than $5.2B in assets under management as of July 31, 2020. Through its family of 10 investment products, Grayscale provides access and exposure to the digital currency asset class in the form of a traditional security without the challenges of buying, storing, and safekeeping digital currencies directly. With a proven track record and unrivaled experience, Grayscale’s products operate within existing regulatory frameworks, creating secure and compliant exposure for investors. For more information, please visit www.grayscale.co and follow @Grayscale.
Marissa Arnold [email protected]