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The new development means that the fund is now required to file the 10-Qs and 10-Ks reports on a quarterly and annual basis, respectively.
Digital assets manager Grayscale has announced that its Large Cap Fund is now an SEC reporting firm. The company had in May filed for the United States Securities and Exchange Commission’s approval of the fund. The Large Cap Fund includes six major cryptocurrencies including Bitcoin (BTC), Bitcoin Cash (BCH), Cardano (ADA), Chainlink (LINK), Ethereum (ETH), Litecoin (LTC).
Prior to the announcement, the company had already morphed two of its products- the Bitcoin and Ethereum Trust into SEC reporting products. Following the success of this drive, however, the firm will now push to have each of its Litecoin, Ethereum Classic, and Bitcoin Cash funds also become SEC-reporting firms.
This achievement reinforces Grayscale’s commitment to scaling its digital products and is in line with the firm’s roadmap to the launch of a digital currency.
With the approval of the Grayscale Large Cap Fund as an SEC-reporting company, wealthy investors with shares in the fund will be able to liquidate their shares on the retail market in just six months instead of twelve. The new status will also help secure customer confidence that will push otherwise conservative investors to delve into cryptocurrencies.
The new development means that the fund is now required to file the 10-Qs and 10-Ks reports on a quarterly and annual basis, respectively. The fund will need to compile reports on Form 8-K and adhere to any other stipulated obligation under the Exchange Act.
Grayscale, established in 2013, is a subsidiary of the Silbert Digital Currency Group. It is touted as the leading company in global assets management, with assets valued at almost $30B in its investment portfolios.
The company holds six digital currencies in trusts allowing individuals to trade them on the stock market without needing to buy, store or keep them directly. These funds have become quite popular with institutional and even retail investors. They are operated within the ambit of existing regulatory frameworks making exposure to them secure and legal.
According to Vice President of Legal, Grayscale Investments, Craig Salm, “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.”