8-K: Grayscale Stellar Lumens Trust Amends Trust Agreement to Align Business Day Definition with Securities Exchange Closures
Material Definitive Agreement Amendment
Grayscale Stellar Lumens Trust has amended its trust agreement to redefine 'Business Day' to align with closures of national securities exchanges, rather than bank closures.
Summary
- Grayscale Stellar Lumens Trust (XLM) has modified its Trust Agreement by entering into Amendment No. 3.
- The amendment changes the definition of 'Business Day' to mean any day other than a Saturday, Sunday, or a day when national securities exchanges are closed in New York, New York.
- Previously, a 'Business Day' was defined as any day other than a Saturday, Sunday, or a day when banks were closed in New York, New York.
- This change aligns the definition with the operational schedule of securities exchanges rather than banks.
Sentiment
Score: 7
Explanation: The document reflects a routine operational update, which is neither particularly positive nor negative, but necessary for clarity and alignment with industry standards.
Positives
- The change in the definition of 'Business Day' provides clarity and aligns the Trust's operations with the schedule of securities exchanges.
- The amendment was made without the need for shareholder consent, streamlining the process.
Management Comments
- Michael Sonnenshein, CEO of Grayscale Investments, LLC, signed the amendment on behalf of the sponsor.
Industry Context
This amendment reflects a move towards standardizing operational definitions within the financial industry, particularly for trusts dealing with securities, by aligning with securities exchange schedules.
Comparison to Industry Standards
- Many financial trusts and investment vehicles use the closure of securities exchanges as a benchmark for defining business days.
- This change brings Grayscale Stellar Lumens Trust in line with common industry practice.
- Other similar trusts, such as those managed by BlackRock or Fidelity, also typically use securities exchange closures to define business days.
Stakeholder Impact
- The change in the definition of 'Business Day' provides clarity for shareholders regarding the operational schedule of the Trust.
- This change is unlikely to have a significant impact on the day-to-day operations of the Trust or its stakeholders.
Key Dates
| Date | Description |
|---|---|
| December 4, 2018 | Date of the original Amended and Restated Declaration of Trust and Trust Agreement. |
| January 11, 2019 | Date of Amendment No. 1 to the Trust Agreement. |
| June 28, 2022 | Date of Amendment No. 2 to the Trust Agreement. |
| March 22, 2024 | Date of Amendment No. 3 to the Trust Agreement and effective date of the change to the definition of 'Business Day'. |
| March 25, 2024 | Date the 8-K report was signed. |
Keywords
Grayscale Stellar Lumens Trust, Trust Agreement, Business Day, Amendment, Securities Exchange, Delaware Trust Company, Grayscale Investments, GXLM, XLM
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