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Grayscale's Stellar Lumens, Zcash and Horizen Trusts Seeking SEC-Reporting Company Status

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Thu, 05/05/2022 - 14:09
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Alex Dovbnya
Three more Grayscale trusts are seeking SEC-reporting company status
Grayscale's Stellar Lumens, Zcash and Horizen Trusts Seeking SEC-Reporting Company Status
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Grayscale Investments, the biggest cryptocurrency asset manager, said on Thursday that it had filed a registration statement on Form 10 for several funds with the U.S. Securities and Exchange Commission.

This is a voluntary filing that will be reviewed by the securities regulator, according to the press release.

If approved, Grayscale Horizen Trust, Grayscale Zcash Trust and Grayscale Stellar Lumens Trust will become SEC-reporting companies. They will have to file quarterly and annual reports with the agency like any other publicly-traded company.

Attaining such a regulatory designation is important since it will make the aforementioned trusts available for the largest pool of investors.

Investors who purchased shares in the aforementioned funds will also be able to sell their shares on the market after six months if the filing is deemed effective.

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 Grayscale Bitcoin Trust, the crown jewel of the leading crypto money manager, was the company's first company to obtain the status of an SEC-reporting company back in January 2020. It currently has $25.5 billion in assets under management.

Since then, it has successfully registered five trusts (Grayscale Bitcoin Cash Trust, Grayscale Ethereum Classic Trust, Grayscale Digital Large Cap Fund, Grayscale Ethereum Trust and Grayscale Litecoin Trust) with the SEC.

Grayscale is currently fighting hard to convert its Bitcoin trust into an exchange-traded fund. It has tweaked its application to make it more palatable to the SEC and launched a massive ad campaign on Amtrak. CEO Michael Sonnenshein also threatened to sue the SEC if it were to reject its proposal to launch the first cryptocurrency ETF.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.