- Grayscale Bitcoin Trust (GBTC) has now become the first cryptocurrency investment vehicle to become an SEC reporting company, as stated in a press statement.
- Michael Sonnenshein, stated that Grayscale had voluntarily pursued this designation and would continue to work within existing regulatory frameworks.
- GBTC has witnessed significant amounts of success in the year 2019.
Since then, it has been over 60 days post the initial filing. Generally, the typical wait period before Form 10 filings automatically goes effective. Further, GBTC has now become the first cryptocurrency investment vehicle to become an SEC reporting company, as stated in a press statement.
The fund had offered by a private placement exemption from SEC registration in the year 2013. However, they decided to pursue this registration voluntarily so that they can boost their compliance standard and gain confidence from investors.
Michael Sonnenshein, the managing director at Grayscale Investment, stated that Grayscale had voluntarily pursued this designation and would continue to work within existing regulatory frameworks.
He also added that this announcement should signal the investors that the regulators were willing to engage with their products and space as a whole.
The Trust would now turn in its quarterly and annual reports, audited financial statements as well as other required forms to the SEC.
Further, Grayscale is also set to reduce the statutory holding periods for the shares from the Trust’s private placement ranging from 12 months to 6 months as per the statement.
This would give accredited investors an earlier liquidity opportunity. The change would be taking place at least 90 days before the condition that the Trust has met all relevant requirements under the Securities Act.
GBTC has witnessed significant amounts of success in the year 2019. As stated by a company spokesperson to The Block, they had over $471 million total inflow into private placement, which is almost twice the amount in 2018.
Sonnenshein had earlier emphasised on the fact that the filing was not a move to turn GBTC into an exchange-traded fund (ETF). Its products, although were modelled after popular investment products and have a familiar structure, according to a statement that came out in November.
As stated by the own site if Grayscale, they have provided various things which would happen, now that they are a reporting company for SEC.
This includes Traditional Security which would enable the investors to gain exposure to Bitcoin without the challenges of buying, storing, and safekeeping Bitcoin directly.
Further, they also assure that the Trust’s private placement will periodically be available for institutional and individual accredited investors. They would also restrict investments in instruments that not registered with the SEC
Additionally, the Trust would now file its quarterly and annual report along with the audited financial statements as 10-Qs and 10-Ks with the SEC, in addition to complying with all other obligations under the Exchange Act.
Lastly, the Trust has designed to have its share value reflect the performance of Bitcoin, and it will work on it.