New York-based cryptocurrency fund provider Grayscale has been playing a major part in taking digital assets to key institutional players.
The company has been offering several crypto products for OTC trading, with the most popular ones being its Bitcoin and Ethereum trust funds that enable investors to gain exposure to the price movement of BTC through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping BTC.
The firm has recently filed a registration statement on Form 10 with the U.S. Securities and Exchange Commission (SEC) for its Ethereum Trust.
If approved, the trust would be designated as an SEC reporting company and would be required to file annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K.
The application is currently under review and the new trust would be the firm’s second digital currency investment option that is currently an SEC reporting company.
“The filing is subject to SEC review; if the Registration Statement becomes effective, it would designate Grayscale Ethereum 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.”
The firm got the approval for the Bitcoin trust earlier in January 2020. It is the company’s most popular investment vehicle holding over 400,000 Bitcoin (BTC), worth nearly $4,744,800,000 at the time of writing.
Its Ethereum Trust holds 1.9 million ETH in its possession, currently worth approximately $746 million.
In its medium post for the same announcements, the firm highlighted that the Ethereum Trust was responsible for 15% of all inflows.
“This past quarter alone (2Q20), we saw the average weekly investment into the Grayscale Ethereum Trust hit $10.4 million, amounting to record quarterly inflows into the Trust to the tune of $135.2 million.”
Growing popularity for Grayscale
Grayscale has also been gaining a lot of popularity amongst institutional investors and the firm even recorded its best-ever quarter, with a more than $400 million surge in inflows.
Overall, Grayscale raised $1.4 billion in the first half of this year, the first-time capital crossed the billion-dollar mark in a six-month time frame.
Despite the crypto market crashing multiple times in 2020, Grayscale has continued to report optimistic figures.
The company recently tweeted that it holds a whopping $5.5 billion worth of digital assets under its management. Further hinting about the growing popularity of cryptocurrencies.
Meanwhile, Ethereum continues to rally alongside Bitcoin and is up 17.7% from last week. It is yet to be seen if the news cashes in, and further boosts ETH prices.