Grayscale Investments® Doubles Its Suite of SEC Reporting Investment Products

Grayscale® Bitcoin Cash Trust, Grayscale® Ethereum Classic Trust, and Grayscale® Litecoin Trust are now SEC reporting companies

Grayscale Investments®, the world’s largest digital currency asset manager and sponsor of Grayscale® Bitcoin Cash Trust (BCHG), Grayscale® Ethereum Classic Trust (ETCG), and Grayscale® Litecoin Trust (LTCN) (the Trusts), announced that the Registration Statements on Form 10 that it filed with the Securities and Exchange Commission (SEC) on behalf of each Trust have become effective. The Trusts join the firm’s existing lineup of investment products with the same designation, Grayscale® Bitcoin Trust, Grayscale® Ethereum Trust and Grayscale® Digital Large Cap Fund, which means Grayscale now has six SEC reporting companies.

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“This milestone reflects Grayscale’s continued commitment to offering transparent investment vehicles that voluntarily exceed standard reporting requirements, meet a heightened level of disclosure, and are subject to additional regulatory oversight,” said Craig Salm, Vice President of Legal at Grayscale Investments. “As we await regulatory approval for a Bitcoin ETF, we remain focused on providing investors with opportunities to access the digital currency ecosystem through Grayscale’s secure, trusted family of products.”

This development aligns with Grayscale’s intent to move each of its digital currency investment vehicles through the product development pipeline described in an April 2021 blog post, ultimately to convert each product into a digital currency ETF.

The Trusts* will now file additional reports and financial statements, including 10-Qs and 10-Ks, with the SEC, along with existing reports on Form 8-K, in addition to complying with all other obligations under the Exchange Act.

Additionally, accredited investors who purchased shares in the Trusts’ private placements will have an earlier liquidity opportunity, as the statutory holding period of private placement shares will be reduced from 12 months to 6 months under Rule 144 of the Securities Act of 1933, as amended (Securities Act).**

As a result of the Trusts becoming SEC reporting companies, each Trust’s shares are now registered pursuant to Section 12(g) of the Exchange Act.***

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*The applicable product offers a private placement to accredited investors. To date, the product has not met its investment objective and the shares quoted on OTCQX have not reflected the value of digital assets held by the product, less the product’s expenses and other liabilities, but instead have traded at both premiums and discounts to such value, with variations that have at times been substantial.

**The holding period reduction goes into effect after the applicable product has been a reporting company for at least 90 days and has satisfied the other requirements under Rule 144 of the Securities Act.

***This voluntary filing should not be confused as an effort to classify the applicable product as an exchange traded fund (ETF). The structure of the applicable product will not change and it will continue to not operate a redemption program nor trade on a national securities exchange.

This press release is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.

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