Is Grayscale the Financial Behemoth of the Cryptospace?

A consideration of Grayscale Investments


Who is Grayscale?

Now many may not know this but the Grayscale Investment Company which is the management company for billions in dollars worth of crypto assets just made a big move regulatory speaking. 

This week, it has been reported that the subsidiary of the Digital Currency Group which has at its helm Angel investor Barry Silbert who has been behind some of the cryptocurrency industry’s greatest names so far has applied to the United States Security and Exchange Commission (SEC) to register its Bitcoin Trust as a reporting company to the commission.

This, of course, raises the bar for many of the required compliance procedures and processes but also gives great advantages both of which will be discussed hereafter.

Greyscale and the Bitcoin Trust

Firstly, this then means that Bitcoin Trust will have to undergo the same requirements as public companies in the United States. These include but are not limited to accounting standards, corporate governance standards, taxation requirements, transparency requirements, shareholders rules and regulations as determined by United States investment laws and so on.

Should the SEC agree (which may take some time due to filing responses and clarifications by the SEC), this will make the Bitcoin Trust become the first Digital asset investment vehicle in the world to follow such procedures openly and transparently.

It would also indicate that the crypto space is also changing and as such the rules must apply as in all the use-cases of other investment vehicles.

The Digital Currency Group

It also says quite a bit about the organization behind this: The Digital Currency Group and the moves that the firm has been making over almost a decade as regards cryptocurrencies putting the firm in the drivers’ seat (at least in the western financial world) for anything regarding cryptocurrency investments.

This then, of course, will mean that the firm will become the “go-to” guys for all types of cryptocurrency investment models, vehicles, investment structuring and advisories and so on.

It also makes a bold statement about the kinds of bright minds that exist within and around the Digital Currency Group.

If cryptocurrencies are to achieve adoption, they have to play by the rules just like everybody else.    

This is what they have discovered and are toeing the path.

Cryptocurrency and Regulation

On the second hand, this opens the main door of the rabbit hole as several things should expectedly start happening in a few days. 

Further regulatory scrutiny of the crypto space by the Americans shall ensue.

This, of course, is to be expected following the rather tepid response of the American lawmakers to innovations with bills such as the “Keep-Big-Tech-Out-of-finance” Act and others.

However, the crypto space shall pass these examinations and scrutiny and shall rise to the challenge.

Further curiosity by the general public shall ensure and investments both on a retail institutional scale shall also follow. 

Cryptocurrency and Wall Street

It is expected that this will create a window of opportunity for Wall Street and other financial markets in America to catch up with their peers in other climes that have accepted cryptocurrencies and distributed ledger technologies.

Further liquidity windows between the crypto space and the regular financial world shall also ensue.

This is one more step towards adoption.

Following the success of this, Digital Currency Group will expectedly make other moves using Grayscale Investments.

Give or take within half a decade, Grayscale Investments will be the “Goldman Sachs” of the crypto space.

So in answer to the question in the title, yes Grayscale Investments is the behemoth of the crypto space if not now; then in the nearest future.

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