The world’s largest digital asset manager has announced that its new Digital Large Cap Fund has become a Securities and Exchange Commission (SEC) reporting company. The announcement also sees Grayscale filing SEC registration statements on Form 10 for the Grayscale Bitcoin Cash Trust, Ethereum Classic Trust, and Litecoin Trust.
Currently, the company has bitcoin and ethereum SEC-reporting entities approved, with the additional three looking to be approved in the future. Key aspects of the announcement now mean that the funds become more attractive for investors.
Investor interest continues to grow in the crypto space
Speaking about the news, Vice President of Legal at Grayscale Investments, Craig Salm stated, “Grayscale aims to provide the investment community with a higher level of disclosure and reporting on top of the already stringent obligations to which our products adhere.”
Salm reiterated the importance of offering high standards for investors looking to invest into the crypto space saying, “Events such as the Fund becoming our third SEC reporting company, and the additional Form 10 filings, signal that there is continued investor interest in gaining exposure to the growing digital currency ecosystem within existing regulatory frameworks, and that regulators continue to engage with market participants in the asset class.”
Grayscale preparing for ETF approval
The move is another step towards Grayscale’s plans to launch a digital currency Exchange-Traded Fund (ETF). Grayscale investments have seen increased interest in its products as it becomes a safer bet within the extremely volatile crypto market. While Salm expects an ETF approval that will ultimately benefit the investment firm, he only expects it to be approved in 2022. However, with SEC reporting status cleared before an ETF approval, Grayscale will put itself in a favorable position for when ETFs are finally approved.