Cryptocurrency investment manager Grayscale has announced that it will split shares of the Ethereum Trust into a 9-for-1 split on December 17.
According to the announcement from the firm, the 9-for-1 share split of the Trust’s issued and outstanding shares will take play on December 14 which will see current shareholders receive an additional 8 shares.
This will officially be effected on December 17, going on the record of shareholders holdings at the close of business on December 14.
The Grayscale Ethereum Trust currently has 29,502,100 shares issued and outstanding which equates to one share representing ownership of 0.09284789 of a single Ethereum token. Once the share split has taken place, the Trust will have a total of 265,518,900 shares issued and outstanding. This would leave a single share in the Grayscale Ethereum Trust equal to 0.01031643 ETH.
Grayscale’s impressive 2020
While the rest of the world has come to grips with the reality of Covid-19 and the effects of the ongoing pandemic, some sectors seem to have enjoyed surprising success despite such a bleak socio-economic outlook.
The cryptocurrency sector has been a particular standout, with Bitcoin finally equalling the heights of its infamous 2017 bullrun. The Decentralized Finance space has also boomed, which has been a driving force behind the positive market outlook.
As a result of the good year for cryptocurrencies and their corresponding market values, companies like Grayscale Investments have seen investors lineup to gain some exposure to an alternative asset class.
The company has had its best year on record with back-to-back milestone-breaking financial quarters with it’s flagship Bitcoin Trust leading the way. The Ethereum Trust is not to be scoffed at either, as the firm’s second most valuable product.
SEC reporting company
The Ethereum Trust also became an SEC reporting company this year, following in the footsteps of the BTC Trust which registered in January 2020. The registration then requires the the company to log quarterly financial reports to the United States Securities and Exchange Commission.
This allowed investors that were barred from investing in non-regulated vehicles to finally gain exposure to various cryptocurrencies through the company. It also gives the general public a transparent view of how the Trusts are performing.
The Ethereum Trust currently has $1.6 bln worth of assets under management according to the Grayscale website.
The company became the first over-the-counter, publicly traded Bitcoin investment vehicle in 2015 but there were certain barriers that prevented institutional investors from getting involved.