Crypto asset management firm Grayscale has received approval from the Financial Industry Regulatory Authority (FINRA) to list shares of its Grayscale Ethereum Trust on the retail market.
According to the New York-based company, it is “the first U.S. publicly quoted security solely invested in and deriving value from the price of Ethereum.”
Launched in 2017, Grayscale operates ten crypto-based funds, including its Ethereum-based fund, most of which are only available to accredited investors with a minimum purchase limit of $25,000 through private listings. Similar to its Bitcoin and Ethreum Classic trusts, the Grayscale Ethereum Trust can now be traded in the open over-the-counter (OTC) market like securities.
“The secondary market really opens up the opportunity for any and all investors,” Michael Sonnenshein, managing director of Grayscale Investments, told Bloomberg.
Though the exact timeline of the listing is not specified by the asset management company, it could hit the open market in the next two weeks. The shares will be traded under the ticker symbol of ETHE, and each unit will be equivalent to around one-tenth of an Ether.
“ETHE will not generate any income and regularly distributes Ethereum to pay for its ongoing expenses. Therefore, the amount of Ethereum represented by each Share gradually decreases over time,” the company noted in the press release.
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Managing billions worth crypto
As per the firm’s daily update, it has a total AUM of $1.8 billion. Grayscale Bitcoin Trust leads the chart with a total asset of $1,737.6 million, whereas its Ethereum trust manages only $11.7 million worth digital assets with each share valued at $23.38 on May 23.
5/23/19 UPDATE: Holdings per share and net assets under management for our investment products
Total AUM: $1.8 billion pic.twitter.com/UxU5qar6ri
— Grayscale (@GrayscaleInvest) May 23, 2019
Meanwhile, on the crypto exchanges, Ethereum is trading at around $245 apiece, as seen on Coinmarketcap.com, gaining around 2.4 percent in the last 24 hours.