Grayscale Bitcoin Trust and Grayscale Ethereum Trust may soon be unavailable to Vanguard clients. This is due to the company ceasing to provide over-the-counter securities services, including purchasing and transferring securities.
Investors trying to obtain exposure to crypto assets through stock market shares will soon confront a new challenge.
Vanguard clients were warned today that, from April 28, they would no longer be allowed to purchase or transfer the majority of over-the-counter stocks. Vanguard is a US financial manager with about $7 trillion in assets under management. This would encompass both the Grayscale Bitcoin Trust and Grayscale Ethereum Trust based on the parameters specified in the email.
The email included a comment on Vanguard’s investment philosophy, which emphasizes a long-term and lasting strategy, as the reason for the move. As a result, the company will reduce certain of its over-the-counter securities-related goods and services.
Off-exchange trading is done with over-the-counter securities. This is frequently due to the fact that they do not meet all of the standards to be listed and traded on a stock exchange like the New York Stock Exchange or Nasdaq. The Bitcoin and Ethereum products from Grayscale are traded over-the-counter and are a popular way for institutions to invest in cryptocurrencies.
Following the April 28 update, Vanguard investors who already own GBTC and ETHE will be able to maintain them in their portfolios.
Because no Bitcoin (or Ethereum) spot exchange-traded fund has been approved by the Securities and Exchange Commission, GBTC and ETHE are frequently used as vehicles to get crypto exposure. Grayscale has applied to the Securities and Exchange Commission to convert the GBTC into a spot ETF. Grayscale’s CEO Michael Sonnenshein said last month that if the SEC did not accept its spot ETF proposal, his company would consider filing a lawsuit.