Grayscale has clarified its use of the term "ETF" to describe its exchange-traded products, including spot crypto ETPs, which are not registered under the Investment Company Act of 1940. These products, therefore, do not adhere to the same regulations and protections as ETFs and mutual funds registered under the 40 Act. This distinction is crucial for investors to understand the regulatory differences and associated risks of these financial products.
Grayscale Clarifies Use of 'ETF' for Non-40 Act Crypto Products
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