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Grayscale Expands Its Crypto Offerings to a Wider Market

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What You Need to Know

  • Three more of its crypto trusts are now trading on the OTC market.
  • Grayscale is also planning to soon file with the SEC to convert its Bitcoin Trust to an ETF.
  • Grayscale appears to have timed the latter announcement with the SEC's approval of the first Bitcoin futures ETF.

Grayscale Investments is expanding its universe of crypto products available to the average investor.

It announced that three more of its digital currency trusts, which were previously available only to institutional investors and accredited individual investors, are now trading in the public markets, on the OTCQX, the top tier of the over-the-counter market. The firm also disclosed it was planning to file an application with the Securities and Exchange Commission to convert its popular Bitcoin Trust to a Bitcoin ETF.

The three Grayscale crypto trusts that are now trading on the OTC market y are the Grayscale Zcash Trust (ZCSH), Lumens Trust (GXLM) and Horizen Trust (HZEN). All are open-ended trusts sponsored by Grayscale that provide exposure to their underlying assets without the hassle of buying, storing and safekeeping the assets directly, according to Grayscale. Zcash and Lumens are cryptocurrencies; Horizen is a cryptocurrency and blockchain network.

“This is an important milestone for digital currencies and demonstrates Grayscale’s continued commitment to moving each of our products from a private placement to the public markets,” said Craig Salm, Grayscale’s head of legal.

In related news, a Grayscale spokeswoman tweeted Monday that “Today, I’m happy to confirm that @Grayscale *WILL* file for $GBTC to be converted into an #ETF as soon as there’s a clear, formal indication from the SEC.”

Grayscale announced plans for the conversion in April, noting that the “timing will be driven by the regulatory environment.”

News that a ProShares Bitcoin futures ETF will launch Tuesday, following SEC approval, appears to have prompted the Grayscale announcement. The spokeswoman Jennifer Rosenthal added, “Once there’s official and verifiable evidence of the SEC’s comfort with the underlying #Bitcoin market – likely in the form of a Bitcoin Futures ETF being deemed effective – the #NYSE Arca will file a document called the 19b-4 to convert $GBTC into an ETF.”