Trusts are investment vehicles that aim to provide investors with exposure to the price movement of each of the underlying assets of the trusts, or to a specific digital currency, so that investors can avoid the challenges of trading. purchase, storage and direct custody of assets. Investors will be able to buy and sell freely GBAT, GLNK, MANA, FILGand GLIV shares through their investment accounts the same way they would other non-registered securities, according to the company.
Craig Salm, chief legal officer of Grayscale, said the firm targets the investor who wants access and exposure to digital assets, but wants to acquire it in a familiar, transparently structured investment vehicle.
GBAT, GLNK, MANA, FILGand GLIV have each offered a private placement to accredited investors since March 2021, according to the firm. With the addition of the new products, Grayscale now offers 14 digital currency investment products traded on OTC Markets, including the popular Grayscale Bitcoin Trust (OTCQX: GBTC).
“What we’ve designed at Grayscale is this four-stage product lifecycle where each stage makes the product more accessible to more types of investors, with the fourth and final stage being conversion into a ETFs“Salm said.
As investors and issuers mobilize to SECOND– approved access to digital assets in a ETFs structure, regulators have yet to approve a crypto spot ETFs. Grayscale, the investment manager behind GBTCthe closest product investors can currently get to spotting bitcoin in a ETFs wrapper, was at the forefront of the campaign
CoinDesk BTX Index is the benchmark for the Grayscale Basic Attention Token Trust, CoinDesk LNX Index is the benchmark for Grayscale Chainlink Trust, CoinDesk’s Decentraland Reference Rate is the benchmark for Grayscale Decentraland Trust, CoinDesk’s Filecoin Reference Rate is the benchmark for Grayscale Filecoin Trust, and CoinDesk’s Livepeer Reference Rate is the benchmark for the Grayscale Livepeer Trust. The trusts will generate no income and will regularly distribute their underlying assets to pay their ongoing expenses. Therefore, the amount of assets represented by each respective stock gradually decreases over time, according to a company statement.
As of May 13, 2022, there were: 620,300 outstanding shares of the Grayscale Basic Attention Token Trust, and each share represented ownership of 9.70245144 BAT; 321,010 outstanding shares of the Grayscale Chainlink Trust, and each share represented ownership of 0.97024514 LINK; 1,897,900 outstanding shares of Grayscale Decentraland Trust, and each share represented ownership of 9.70245144 MANA; 111,400 outstanding shares of the Grayscale Filecoin Trust, and each share represented ownership of 0.97138366 THREAD; and 614,800 outstanding shares of Grayscale Livepeer Trust, and each share represented ownership of 0.97104296 DPT. The shares created through the trusts’ respective private placements become eligible for sale in the public market after a one-year statutory hold period under Rule 144 of the Securities Act, according to a statement from the society.
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