Grayscale introduced new altcoin trusts for private investors
Following the announcement of the physically backed Bitcoin ETF, Grayscale, the largest digital currency asset manager, announced three new altcoin trusts: Zcash, Stellar Lumen and Horizen. The trusts began trading on the OTCQX over-the-counter market under the symbols ZCSH, GXLM and HZEN, respectively.
The newly introduced trusts are sponsored by Grayscale and designed to expose investors to the price movements of the underlying assets. The main benefit for retail investors would be market exposure without going through the purchase, storage and custody of the underlying assets.
Grayscale’s chief legal officer Craig Salm said the new trusts are part of the company’s goal to move its proceeds from private placement to public markets. Today, traders can use OTC markets to gain exposure to digital assets in addition to the opportunity to leverage their positions. From now on, they will be able to exchange the Horizen, Stellar and Zcash trusts.
The actions of the trusts will reflect the value of the digital currency held by the trust. The new trusts will not generate income for the business. In order to pay the expenses of the fund, the underlying assets will be redistributed to various tasks.
The Horizen, Stellar, and Zcash Trusts are not approved – or disapproved – by the Securities and Exchange Commission because they are not subject to disclosure or other requirements of US security law.
Trusts are not registered with the Securities and Exchange Commission and are not subject to disclosure and certain other requirements imposed by US securities laws.