- Grayscale Bitcoin Trust has grown to become the largest Bitcoin investment product in the world even though it had initially met with skepticism by many traditional investors and industry observers.
- It filed a Registration Statement with the Security and Exchange Commission (SEC) which makes it the first digital currency investment vehicle to do so.
- It was launched in September 2013 and had become the first-ever publicly traded Bitcoin investment product in the U.S.
In the beginning, the trust started as a private placement only available to accredited and institutional investors to gain exposure to Bitcoin easily without facing any problem in terms of buying, storing and safekeeping Bitcoin directly.
It was only in 2015 when the trust received the approval for trading publically under the symbol of “GBTC”, increasing its reach to all the investors with access to the U.S. security market.
Grayscale’s team is still working on the aim of creating and sponsor investment products, trying to make a digital currency investment product accessible to all investors.
Filing of SEC review
The Grayscale Bitcoin Trust has publicly filed a Registration Statement on Form 10 with the Security and Exchange Commission (SEC). The filings are still in transition, but when it’s completed the trust would be recognized as an SEC reporting company and register its shares under section 12(g) of Securities Exchange Act of 1934, as amended (the “Exchange Act”).
If the filing successes trust will become the first digital currency investment vehicle to attain the status of a reporting company by the SEC.
Although they do have a similar structure to investors, it’s very clear that this voluntary filing is not and shouldn’t be confused as an effort to classify the trust as an exchange-traded fund (ETF).
Even after Form is deemed effective, not much will change in the structure of the trust.
The things which will change are: –
First movers: this will make the trust as an SEC reporting company and register is share under the Exchange Act, which will make it the first digital currency investment vehicle to do so.
Liquidity Opportunity: the investors who have previously purchased shares in the Trust’s private placement would have an early liquidity opportunity.
Investor Audience: many institutional may begin to join the trust as it will be the first to be registered with the SEC which will provide investors many additional perks.
SEC Reporting: till now trust is filing its quarterly report, annual report and audited financial statement pursuant to the OTC Markets Alternative Reporting Standard (ARS), now it would file all these reports as 10-Qs and 10-Ks with the SEC along with the current report on Form 8-K, in addition to complying with all other obligations under the Exchange act.