FINRA Approves Crypto Fund
The Financial Industry Regulatory Authority also known as FINRA has approved the Greyscale Ethereum Trust. FINRA is a non-government organization (NGO) that works as a self-regulatory organization. While FINRA is an NGO, it has been authorized by Congress to protect America's investors by verifying the broker-dealer industry operates fairly.
A Bit About Greyscale
Greyscale is a large digital currency asset management. They operate several different cryptofunds and were the firm that lead the #dropgold campaign on Twitter and elsewhere.
In a surprising announcement, FINRA approved the Greyscale Ethereum Fund. As per the announcement:
" ("Grayscale"), a global leader in digital currency asset management, today announced that common units of fractional undivided beneficial interest (â€œSharesâ€) in Grayscale Ethereum Trust ("Shares") were approved by FINRA for a public quotation (symbol: ETHE) on the OTC Markets.
Launched in 2017 and sponsored by Grayscale, ETHE is an open-ended trust that holds Ethereum and derives its value solely from the value of Ethereum. Investors in ETHE can gain exposure to the price movement of Ethereum without the challenges of buying, storing, and safekeeping Ethereum. As of April 30, 2019, each Share of ETHE represents ownership of 0.09662399 Ethereum. 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.
Grayscales investment products are available to institutional and accredited individual investors."
Unfortunately, it seems that this fund isn't available for regular traders, but only institutes and accredited investors. While this may be seen as a step in the right direction & good for Ethereum and cryptocurrencies, it could have been better.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado