The United States Securities and Exchange Commission [SEC] has been coming down hard on crypto exchanges when it comes to compliance. BitMEX is still trying to deal with a double lawsuit by the US prosecutors. However, SEC has now approved Grayscale’s Ethereum Trust [ETHE] as the first public quoted ETH investment product in the United States.
“Grayscale Investments®, the world’s largest digital currency asset manager and sponsor of Grayscale® Ethereum Trust (OTCQX: ETHE) (the “Trust”), today announced that the Registration Statement on Form 10 that it filed with the Securities and Exchange Commission (“SEC”) on behalf of the Trust has become effective. The Trust is now an SEC reporting company with its shares registered pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).”
The shares of the Grayscale Ethereum Trust shall be quoted on the top OTC marketplace OTCQX with symbol- ETHE. This would make it possible for users to buy or sell shares continuously through the trading day at prices established by the market. Additionally, Grayscale also mentioned its Ethereum trust will be eligible for tax-advantaged accounts. On 19 November, the market share price for ETHE was $68.07 while the holdings per share remained at $44.18.
This was the second crypto investment vehicle to acquire the status of the SEC reporting company after Grayscale Bitcoin Trust [GBTC]. This announcement will provide more liquidity to Ethereum.
Grayscale’s cryptocurrency assets under management have been setting new milestones. Recently, the firm’s AUM surpassed the $10 billion mark. Although most of its crypto-assets are held in Bitcoin and the Grayscale Bitcoin Trust is valued at around $8.85 billion holding more than 500,000 BTC. Whereas, the Grayscale Ethereum Trust currently held $1.22 billion of assets under management and attracted more than $300 million of fresh investment in November.