• Wed. Jun 22nd, 2022

Grayscale adds 5 digital currency products to its range of OTC markets

ByHazel R. Lang

May 16, 2022

Grayscale Investments is offering five new digital currency investment products to investors.

Grayscale announced today that the Shades of grey Basic Attention Token Trust (GBAT)the Shades of grey Chainlink Trust (GLNK)the Shades of grey Decentralized Trust (MANA)the Shades of grey Filecoin Trust (FILG)and the Shades of grey Livepeer Trust (GLIV) started trading on OTC markets.

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 tradable GBAT, GLNK, MANA, FILG and GLIV shares through their investment accounts in the same way as 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, FILG and GLIV have each been offering 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 ETF conversion,” Salm said.

While investors and issuers are mobilizing for SEC-approved access to digital assets in an ETF structure, regulators have yet to approve a spot crypto ETF. Grayscale, the investment manager behind GBTC, the closest product investors can currently get to spotting bitcoin in an ETF wrapper, was at the forefront of the campaign.

CoinDesk’s BTX Index is the benchmark for the Grayscale Basic Attention Token Trust, CoinDesk’s LNX Index is the benchmark for the Grayscale Chainlink Trust, CoinDesk’s Decentraland Reference Rate is the benchmark for the Grayscale Decentraland Trust, the Filecoin Reference CoinDesk’s Rate is the benchmark for the 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 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 FIL; and 614,800 outstanding shares of Grayscale Livepeer Trust, and each share represented ownership of 0.97104296 LPT. 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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