Grayscale Investments, the digital asset investment firm behind Grayscale Bitcoin Trust (OTCMKTS: GBTC), has unveiled a new broker-dealer entity that will from now onwards create and issue shares of its leading crypto trust to investors.
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The new entity is called Grayscale Securities, a wholly owned subsidiary of Grayscale and is now the trust’s newest affiliate. The platform will take over from Genesis Global Trading, a subsidiary of Grayscale.
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Both firms are owned by crypto-focused venture capital firm Digital Currency Group.
Termination of Agreement with Origin
according to a Announcement Published Monday, October 3, 2022, Grayscale Securities is a Delaware Limited Liability Company registered with the US Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA).
Grayscale Securities is now an authorized participant, distributor and marketer of Bitcoin Trust shares effective October 3, 2022, Grayscale noted in a document filed with the SEC.
Grayscale’s formation and subsequent use as a distributor and marketer meant that it terminated its agreement with Genesis, which is dated November 15, 2019. The company has also removed Genesis as its authorized participant, concluding a deal signed on 11 January 2019.
However, while Grayscale Securities assumes two roles, Genesis will continue to be a liquidity provider of the trust, according to the document.
SEC rejects Grayscale’s application to convert its GBTC to spot bitcoin (B T cexchange-traded funds (ETFs) at the end of June this year. Grayscale sued the regulator over the refusal, and as informed of By Invez, Grayscale’s chief legal officer Craig Salm noted that litigation could drag on for up to two years.
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