Vanguard has informed customers today that it will cease support for over-the-counter (OTC) securities. This means that the Grayscale Bitcoin Trust and Grayscale Ethereum Trust based on cryptocurrencies can no longer be purchased. Here are the details…
Vanguard stops trading crypto trusts GBTC and ETHE
Vanguard customers may not be able to purchase both Grayscale Bitcoin Trust and Grayscale Ethereum Trust anytime soon. This is a result of the company stopping its over-the-counter securities services, including supporting purchases and transfers. Investors hoping to acquire crypto-asset risk through shares in the stock market will soon face a new hurdle.
Vanguard, a U.S.-based investment advisor with approximately $7 trillion in assets under his management, has informed clients that starting April 28, they will no longer be able to purchase the majority of over-the-counter (OTC) securities. and they were not able to transfer. According to the criteria listed in the email, this includes both the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE). As for the reason for the change, the email contained a note about Vanguard’s investment philosophy, emphasizing a long-term and durable strategy.
OTC products popular
Over-the-counter securities are traded off-exchange. Often times this is because they do not meet all the requirements to be listed and traded on an exchange such as the New York Stock Exchange or the Nasdaq. Grayscale’s Bitcoin and Ethereum products are traded over the counter and are a popular way for institutions to invest in cryptocurrencies. Investors who already hold GBTC and ETHE will be able to keep them in their portfolios after the April 28 change.
Kriptokoin.com, one reason GBTC and ETHE are widely used as a tool to gain crypto exposure, is because the US Securities and Exchange Commission (SEC) There is no approved Bitcoin (or Ethereum) ETF. Grayscale has filed with the SEC to convert GBTC to a spot ETF. Last month, Grayscale’s CEO, Michael Sonnenshein, stated that he would sue the SEC if his firm did not approve its spot ETF application.
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