Grayscale Adds Digital Currency Products to OTC Markets

Grayscale Investments has five new digital currency investment products available to investors. 

Grayscale today announced that the Grayscale Basic Attention Token Trust GBAT, the Grayscale Chainlink Trust GLNK, the Grayscale Decentraland Trust MANA, the Grayscale Filecoin Trust FILG, and the Grayscale Livepeer Trust GLIV have begun trading on OTC Markets

The trusts are investment vehicles that intend to allow investors to gain exposure to the price movement of each of the trusts’ underlying assets, or specific digital currency, so investors can avoid the challenges of buying, storing, and safekeeping the assets directly. Investors will be able to buy and sell freely tradable GBAT, GLNK, MANA, FILG, and GLIV shares through their investment accounts in the same manner as they would other unregistered securities, according to the firm.

Craig Salm, Grayscale’s chief legal officer, said that the firm is targeting the investor who wants access and exposure to digital assets but wants to gain it in a familiar, transparently structured investment vehicle. 

GBAT, GLNK, MANA, FILG, and 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 trading on OTC Markets, including the popular Grayscale Bitcoin Trust (OTCQX: GBTC). 

“What we have designed at Grayscale is this four stage product life cycle where each stage results in the product becoming more accessible to more types of investors, with the fourth and final stage being conversion into an ETF,” Salm said.

While investors and issuers alike are rallying for SEC-approved access to digital assets in an ETF structure, regulators have not yet approved a spot crypto ETF. Grayscale, the investment manager behind GBTC, the closest product that investors can currently get to spot bitcoin in an ETF wrapper, has been at the forefront of the campaign

CoinDesk’s BTX Index is the reference for the Grayscale Basic Attention Token Trust, CoinDesk’s LNX Index is the reference for the Grayscale Chainlink Trust, CoinDesk’s Decentraland Reference Rate is the reference for the Grayscale Decentraland Trust, CoinDesk’s Filecoin Reference Rate is the reference for the Grayscale Filecoin Trust, and CoinDesk’s Livepeer Reference Rate is the reference for the Grayscale Livepeer Trust. The trusts will not generate any income and will regularly distribute their underlying assets to pay for their ongoing expenses. Therefore, the amount of assets represented by each respective share gradually decreases over time, according to a statement from the firm.

As of May 13, 2022, there were: 620,300 shares outstanding of the Grayscale Basic Attention Token Trust, and each share represented ownership of 9.70245144 BAT; 321,010 shares outstanding of the Grayscale Chainlink Trust, and each share represented ownership of 0.97024514 LINK; 1,897,900 shares outstanding of the Grayscale Decentraland Trust, and each share represented ownership of 9.70245144 MANA; 111,400 shares outstanding of the Grayscale Filecoin Trust, and each share represented ownership of 0.97138366 FIL; and 614,800 shares outstanding of the Grayscale Livepeer Trust, and each share represented ownership of 0.97104296 LPT. Shares created through the trusts’ respective private placements become eligible to sell into the public market after a statutory one-year holding period under Rule 144 of the Securities Act, according to a statement from the firm.

For more news, information, and strategy, visit the Crypto Channel.

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