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Grayscale Investments has filed an application for registration of its Ethereum Classic Trust in a publicly traded OTC (OTC) market, a move that will allow investors to buy this fund through through retail brokerage accounts.
Michael Sonnenshein, Managing Director of Grayscale, made the announcement during an interview with CNBC, revealing that Canaccord Genuity – the trust's broker – had filed a listing request from Ethereum Classic Trust on the OTCQX market later this year.
Once the trust is listed on the stock exchange, retail investors will be able to buy shares through brokerage platforms and hold them in tax-efficient accounts, such as IRAs. At the present time, the shares are only offered by private placement and are reserved for accredited investors who purchase shares of at least $ 10,000.
The Ethereum Classic Trust will be the second Grayscale product to be listed on an over-the-counter market. The company's best-known product, Bitcoin Investment Trust (OTCQX: GBTC), has been publicly traded since 2015 and is a favorite among retail investors.
However, the shares are not currently redeemable for the underlying assets, so their price often deviates from its NAV based on supply and demand. The demand for GBTC is so high that its shares exchange regularly with a premium of 60% or more compared to its net asset value. On Monday, GBTC shares closed at $ 15.16, about 67% higher than the fund's $ 9.07 net asset value, according to data from the anonymous trader BambouClub.
As CCN reported, Grayscale launched a series of new funds in 2018, doubling the size of its product line. More specifically, the company has opened a fund that holds the five most important cryptocurrency market capitalization, offering investors exposure to around 70% of the total market value.
Earlier this month, Grayscale also launched individual trusts for Ethereum, Ripple, Litecoin and Bitcoin Cash, adding to a lineup that already included Bitcoin, Ethereum Classic and Zcash Investment Trusts.
Coinbase, best known for its cryptocurrency trading and brokerage platform, also announced this month that it would launch an investment product to track weighted performance by the market capitalization of cryptocurrencies available on the Coinbase platform. Unlike Grayscale products, investors can buy Coinbase Index Fund shares with Bitcoin and several other cryptocurrencies.
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