Grayscale Investments—a subsidiary of the Digital Currency Group (DCG)—is pledging an additional two years of support to the Ethereum Classic Cooperative (ECC).
In a press release, the digital asset manager explained that one-third of the fees collected through its Grayscale Ethereum Classic Trust will continue to go toward funding the ECC through the end of 2021. This allows the Ethereum Classic Cooperative to continue to fund various development projects on the ETC protocol.
The Cooperative also plans to use some of the funds to revamp its governance and establish stronger bookkeeping methods to ensure a more transparent infrastructure. It plans to publish transparency reports every quarter starting in March of this year.
Founded in 2017, the ECC is a public charity that provides financial resources to developers who build atop the Ethereum Classic network. As of Q3 of last year, Grayscale has contributed more than $1 million in funds to the organization.
Meanwhile, it appears that Grayscale’s boost of confidence in Ethereum Classic may have caused a slight surge in the price of the coin. Earlier today, ETC was up by as much as 6 percent, trading for right around $9.45 per coin. It is currently trading for approximately $9.17, which is still a 3 percent increase.
Ethereum Classic is having a big year so far, and so is Grayscale.
Last week, Grayscale announced that 2019 was its highest-performing year in terms of cryptocurrency investments, with clients pledging more than $600 million to digital currencies and beating out the totals of 2013 through 2018 combined.
And just yesterday, the company announced that its Grayscale Bitcoin Trust had become an SEC reporting company. Initially filing a Form 10 with the SEC last November, the company’s application has now been accepted. The Trust will now be required to remain in compliance with the SEC and issue periodic reports detailing any changes in its operations.
While filing is voluntary, the Trust’s newfound status is likely to make it more attractive to institutional investors, who will enjoy more protection when investing in Bitcoin through the firm.