ETH rallies after Grayscale’s Ethereum Trust becomes SEC reporting company

Grayscale Investments recently announced that Grayscale Ethereum Trust is now a Securities and Exchange Commission (SEC) reporting company. The news was well-received by the cryptocurrency market resulting in the rally of both Bitcoin (BTC) and Ethereum (ETH).

On Monday, October 12, Grayscale Investment announced its Ethereum Trust is now an SEC reporting company, according to Coindesk. This means that the trust will now begin disclosing the amount of money moving through it making it more transparent and potentially increase the trust’s liquidity.

“The Trust will now file its quarterly and annual reports, including its financial statements, on Form 10-Qs and 10-Ks with the SEC, along with current reports on Form 8-K, in addition to complying with all other obligations under the Exchange Act,” Grayscale Investments said in a statement.

The company also announced that the holding period for placements has been reduced from 1 year to 6 months. “Additionally, accredited investors who own or purchase shares from the Trust’s private placement now have an earlier liquidity opportunity, as the statutory holding period of shares purchased through the private placement will be reduced from 12 months to 6 months, provided the other requirements under Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”), have been satisfied,” Grayscale added.

The news also sent Bitcoin (BTC) and Ethereum (ETH) prices soaring. ETH traded at $384.65 or 2.69 percent higher in the past 24 hours. The crypto established a new high since September 20.

Meanwhile, BTC traded at $11,494.70 at press time, an increase of 0.95 percent in the past 24 hours. The crypto managed to establish a new high since September 2.

Denis Vinokourov, head of research at Bequant, a London-based prime brokerage expects ETH to outperform BTC. “The news will likely spur on another wave of Ethereum outperforming bitcoin, especially given the growing total value locked (TVL) across the DeFi universe,” Vinokourov said.

Grayscale’s Ethereum Trust became the second digital currency investment vehicle to become a SEC reporting company. It followed Grayscale’s Bitcoin Trust, which achieved the same status on January 21, 2020.

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