Following the announcement of the physically-backed Bitcoin ETF, Grayscale, the largest digital currency asset manager, announced OTC trading of three altcoin trusts: Zcash, Stellar Lumen and Horizen. The trusts have begun trading on the OTC market OTCQX under the tickers ZCSH, GXLM and HZEN, respectively.
The presented trusts are sponsored by Grayscale and designed to expose investors to the price movements of the underlying assets. The main advantage for retail investors would be exposure to the market without going through buying, storing and keeping the underlying assets.
Grayscale's head of legal, Craig Salm, stated that trusts are part of the company's goal to move its products from a private placement to public markets. Today, traders are able to use OTC Markets to gain exposure to digital assets in addition to the ability to leverage their positions. Now, they will be able to trade Horizen, Stellar and Zcash trusts.
The trusts' shares will reflect the value of the digital currency held by the trust. Trusts will not generate income for the company. In order to pay for the fund's expenses, the underlying assets will be redistributed to various tasks.
Horizen, Stellar and Zcash trusts are not approved—or disapproved—by the Securities and Exchange Commission since they are not subject to disclosure or other requirements of U.S. security law.
The trusts are not registered with the Securities and Exchange Commission and are not subject to disclosure and certain other requirements mandated by U.S. securities laws.