Grayscale Moves To Convert its Investment Funds into a Reporting Company For SEC

Grayscale investments is seeking to convert its $630-million diversified crypto funds into a reporting company for the Securities and Exchange Commission.

The announcement of the application filed on Thursday with SEC was made on Twitter by the official handle of the company. The third Form 10 filing with the Securities and Exchange Commission, if approved, will mandate the company to file quarterly and annual financial reports in addition to other obligations subject to Regulation 13A in the Exchange Act.

Grayscale named its digital large-cap crypto assets in the filing altogether making almost 70% of the digital asset management. According to recent reports, Grayscale manages over $53.1 billion in overall assets and a large-cap fund at over $630 million.

“Today we voluntarily filed for Form 10 with the SEC for $GDLC. If effective, it would designate GDLC as Grayscale’s third digital currency investment vehicle to become an SEC reporting company, following $GBTC as the first and $ETHE as the second in the US,” the tweet read.

The conversion would make GDLC a public tradable asset as approval from SEC implies registration of the shares of the fund with the commission. The regulation would require regular reporting entitlements, nevertheless it can attract more conservative investors.

GDLC was launched in 2019 and has grown over 300% currently holding an estimated $630.1million in assets under management according to reports from the company’s website. The company comprises of five cryptocurrencies which are Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC) and Chainlink (LINK).

It is recorded in January that Grayscale liquidated Rippl’s XRP from the market-cap-weighted GDLC fund amid the lawsuit that the Securities and Exchange Commission filed against Ripple.

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