In an initiative that would open up the Grayscale Bitcoin Trust (GBTC) to a large number of Bitcoin investors who would otherwise not be allowed to trade or invest in products that are not SEC-reporting, Grayscale Investments, a trusted authority on digital currency investing, has filed a voluntary registration statement with the United States Securities and Exchange Commission (SEC).
The filing is subject to SEC review; once the initiative that is aimed at broadening its investor base becomes a reality, GBTC will become the first digital currency investment vehicle to get the status of a reporting company by the Commission.
GBTC has assets of more than $2 billion and trades on an over-the-counter marketplace known as OTCQX. It is listed under the Alternative Reporting Standard, which does not need registration with the SEC. The differentiating factor is that an investment in OTC marketplace securities is generally considered riskier than in those traded on exchanges.
The filing by Grayscale Investments, the world’s largest digital currency asset manager, would allow investors, who previously purchased GBTC shares in a private placement, to sell their shares in the market. Yet another benefit with the filing, if it gets the green light, is that it will allow investors to sell their GBTC shares after six months, instead of the mandatory holding period of one year.
By filing a voluntary registration with the SEC, Grayscale Investments, which provides secure access and diversified exposure to digital currency asset classes, hopes to attract more investors to its dedicated Bitcoin Fund.
Once it gets the status of an SEC-reporting company, it would increase transparency for investors and subsequently, it will also encourage more people to invest in the fund. Another major benefit for investors is that the increase in investors would also result in more liquidity for shareholders.