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Grayscale Investments LLC Grayscale Stellar Lumens Trust (XLM) has submitted its 10-K filing for the fiscal year ended September 30, 2024.
The filing details the Trust's purpose to hold Stellar Lumens (XLM) and its operations as a Delaware Statutory Trust. The Trust issues shares on a periodic basis to accredited investors in exchange for deposits of XLM.
The Trust's investment objective is for the value of the Shares to reflect the value of XLM held by the Trust, less the Trust's expenses and other liabilities. However, the Shares have historically traded at premiums and discounts to the Trust's NAV per Share.
The Trust's XLM are held by Coinbase Custody Trust Company, LLC (COIN+4.92%) as the custodian. The Trust does not operate a redemption program, and the Shares are not redeemable by the Trust.
The filing outlines the risks associated with the Trust and the digital asset market, including extreme volatility in trading prices, regulatory changes, and the potential for digital assets to be deemed securities.
The Trust's expenses include a Sponsor's Fee, which is paid in XLM, and extraordinary expenses that may arise from regulatory or legal actions.
The filing also discusses the potential impact of forks, airdrops, and similar occurrences on the Trust's holdings and operations.
The Trust may be subject to additional regulations if XLM or transactions in XLM are deemed securities, which could result in extraordinary expenses or the termination of the Trust.
The filing includes a summary of risk factors, highlighting the volatility of digital asset prices, regulatory risks, and the Trust's reliance on third-party service providers.
The Trust does not anticipate cash dividend payments to shareholders and highlights various factors that could impact the value of the Shares.
The filing concludes with a discussion of potential conflicts of interest, the Trust's reliance on the Sponsor, and the limited rights of shareholders under the Trust Agreement.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Grayscale Investments LLC Grayscale Stellar Lumens Trust (XLM) annual 10-K report dated November 22, 2024. To report an error, please email earnings@qz.com.