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FINRA approval opens up Grayscale’s Ethereum Trust to individual investors

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Grayscale, a New York-based asset management company, received approval from FINRA to list its Grayscale Ethereum Trust shares on OTC markets which will become the first publicly-quoted Ethereum-based securities.

Ethereum Trust receives FINRA approval for public quotation

Grayscale Investments, a New York-based digital asset management company, made history today for being the first company to offer publicly traded Ethereum-based securities.

The company announced the news on Twitter on May 23, saying they received the approval from the Financial Industry Regulatory Authority (FINRA) to list eligible shares of its Grayscale Ethereum Trust. Having received secondary-market trading approval, Grayscale’s Ether investment vehicle will now be open to mom-and-pop buyers, Bloomberg reported.

Michael Sonnenshein, managing director of Grayscale Investments, said that the secondary market opens up the opportunity for “any and all investors.”

Grayscale Ethereum Trust (ETHE) currently has $12.5 million in assets under management and was launched in December 2017 during the height of the crypto bubble. The trust was initially only available to accredited and institutional investors at a minimum of $25,000 through private purchases, Sonnenshein explained.

With ETHE, Grayscale now manages 10 funds—Ethereum (ETH), Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), Stellar Lumens (XLM), XRP, and Zcash (ZEC).

Opening ETHE to the public will make investing in crypto more accessible

According to the company’s press release, as of April 30, each Share of ETHE would be equivalent to 0.09662399 Ethereum. However, the company also noted that the Ethereum in each share would decrease over a period of time as ETHE would not “generate income.” To combat this, it will be “regularly distributed” to clear-out expenses.

The launch of Grayscale’s Ethereum product will remain subject to full compatibility with the Depository Trust Company (DTC), the world’s largest securities depository, the company said.

“There will be no trading volume in the Shares’ public quotation until the Shares are DTC eligible, which ETHE is expected to receive soon. Investors will be able to find current financial disclosure and Real-Time Level 2 quotes for Shares of ETHE on the OTC Markets website once trading commences,” Grayscale stated in the press release.

As reported by Bloomberg, investors in the Ethereum Trust who have held shares for at least a year will now be able to sell these shares over the counter.

Considering how well Grayscale did with its Bitcoin Investment Trust (BIT) and Ethereum Classic Trust (ECT), it’s no wonder why investors have gone crazy over ETHE. According to Insider Financial, Grayscale Ethereum Classic Trust has rallied by more than 300 percent since the start of the year. Last month, the company reported that 99 percent of its client investments were in BIT.

Filed Under: , Ethereum, Trading

Priyeshu Garg

Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. He holds an engineering degree in Computer Science Engineering and is a passionate economist. He built his first digital marketing startup when he was a teenager, and worked with multiple Fortune 500 companies along with smaller firms. When he is not solving the transportation problems at his company, he can be found writing about the blockchain or roller skating with his friends.

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Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

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NYSE files a trademark application for trading NFTs

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The world’s largest stock exchange may be planning to bring business into the Metaverse.

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Traders say $4,000 Ethereum back on the cards ‘if’ this bullish chart pattern plays out

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Global tensions that could trigger a correction in markets abound, but traders say ETH’s current setup could result in a swift return to the $4,000 level.

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CryptoPunks community reacts to the ongoing copyright battle between V1 and V2

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Although the collection is no longer deemed authentic by Larva Labs, its creators alleged sold 210 ETH worth of CryptoPunks V1 when the wrapped versions first gained traction.

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Binance.US is under investigation from SEC over trading affiliates: Report

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Binance CEO Changpeng Zhao allegedly has connections to two market makers buying and selling crypto on Binance.US.

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Boost Insurance unveils product covering against crypto theft from qualified custodians

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Boost Insurance, an insurance infrastructure-as-a-service platform, alongside go-to-market partner, Breach Insurance, a company that provides insurance technology and regulated insurance products for the cryptocurrency market, today announced the launch of Crypto Shield, an insurance product for cryptocurrency available to retail wallet holders.

Crypto Shield covers the theft of cryptocurrency while in the custody of a qualified custodian.

The Crypto Shield product allows individuals to purchase protection for their crypto wallets held by select custodians. In the case that the custodian is breached or suffers a social engineering attack resulting in lost assets, individuals insured under Crypto Shield can be reimbursed for the value of their policy.

Boost + Breach

While there is some commercial insurance available to cryptocurrency institutions, Breach envisioned Crypto Shield as a solution to the protection gap that currently exists for individuals holding crypto, securing a partnership with Boost to assist in bringing the Crypto Shield product to life.

Boost’s insurance infrastructure-as-a-service packages the necessary operational, technological, compliance, and capital requirements for new insurance programs into a white-label solution, enabling insurtechs like Breach to swiftly launch new lines of business.

“Boost’s deep expertise and insurance infrastructure-as-a-service platform, and Relm’s industry-leading crypto reinsurance capabilities, have positioned Breach to bring a highly complex insurance product to the market in a beautifully delivered customer experience.”
– Eyhab Aejaz, Co-Founder & CEO at Breach

To deliver that product in a seamless experience, Boost and Breach’s platforms connect via API, allowing Boost’s policy administration system to deliver back-end management for the Crypto Shield product. Breach’s customers are then able to purchase and manage every part of their policy and claims process, all from within Breach’s proprietary crypto insurance platform.

“With Boost’s infrastructure-as-a-service platform, companies like Breach can launch and deliver innovative new insurance offerings, at a fraction of the time and cost required to build a full-stack insurance program from scratch.”
– Alex Maffeo, CEO & Founder of Boost

In addition to powering the new product, Boost and Breach partnered to source and secure the necessary reinsurance backing from industry expert Relm Insurance Ltd. (Relm), underwritten by Trisura Specialty Insurance Company. Operating out of Bermuda, Relm is a capacity provider to the crypto sector with a track record of insuring companies across the ecosystem. Relm has recently been awarded an ‘A Exceptional’ Financial Stability Rating (FSR) by Demotech.

“Relm’s partnership with Boost and Breach to reinsure the US’s first cryptocurrency insurance product for retail wallet holders is a milestone in supporting the development of crypto and blockchain technologies.”
– Joe Ziolkowski, CEO at Relm

The post Boost Insurance unveils product covering against crypto theft from qualified custodians appeared first on CryptoNinjas.

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