As publicly traded companies, Voyager Digital Ltd VYGVF and Grayscale Bitcoin Trust GBTC already adhere to financial standards and self-regulation. This could lead to the companies being ahead of SEC regulations, which is a welcomed event by the companies' executives.
Self-Regulation: Not that many cryptocurrency exchanges and companies offering investments in cryptocurrency are publicly traded. The ones that are have abided by rules put in place and maintain self-regulation.
“I think our firms are doing what we can to make these products transparent to investors,” Grayscale’s VP of Legal Craig Salm said at the 2021 Benzinga Crypto Festival.
Protections for retail traders are in place with a company such as Grayscale as it self-regulates and seeks to protect its customers.
Salm added that there is a common misconception that cryptocurrency companies are anti-regulation, which isn’t true. He said regulators have a tough job as a new growing industry such as cryptocurrency brings a new set of risks for investors.
Voyager offers investments in cryptocurrencies and seeks to protect its customers.
“We’re already self-regulating ourselves when it comes to bringing products to retail investors,” Voyager Digital CEO Steve Ehrlich said.
Ehrlich adds that there is a limited number of cryptocurrency companies abiding by this extra set of rules as a publicly traded company.
The Voyager CEO welcomes changes from the SEC but sees the process taking time, comparing it to the early days of the SEC taking years to add rules after stock market crashes.
“The regulation itself, it can’t happen overnight,” he said.
Ehrlich wants insight from the SEC into regulation changes: "I'd like to see more framework around the coins to guide us."
Crypto ETFs: An ETF could allow exposure to cryptocurrency without having to buy. The ETFs that have been discussed are tracking the price of Bitcoin BTC/USD and could allow exposure to new investors.
The duo said that ETFs are important for the evolution of the marketplace.
Grayscale operates the closed-end fund launched in 2013 that has attracted more than $30 billion in assets under management. Salm said Grayscale is committed to the ETF process.
“The SEC has been very clear at what they want to see from this,” Salm said.
The SEC is primarily focused on investment protection, Salm told panel viewers.
GBTC shares trade at $37.99 and have traded between $10 and $58.22. With no current ETFs on the market, GBTC is a popular option for new investors to cryptocurrency who want exposure without having to buy the coin or open an account with a crypto broker.
Voyager Offerings: Ehrlich said Voyager currently offers 60 different coins, with half allowing rewards.
“You can create wealth through this digital,” Ehrlich said.
Voyager will list on the Toronto Stock Exchange next week and has a goal of being uplisted from the OTC to the Nasdaq in the U.S.
Business accounts are being welcomed to Voyager as the firm started accepting small to mid-size businesses wishing to hold cryptocurrencies.
Voyager shares trade at $14.93 and have traded between $0.43 and $30.20 over the last year, marking a huge gain in the share price with continued interest in cryptocurrency and new account sign-ups for the company.
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