Grayscale Bitcoin Trust Gets SEC’s Nod to be Its Reporting Company
In an unprecedented move, The United States SEC has today January 21, 2020, approved an application by Grayscale Bitcoin Trust to be its reporting firm. The move comes after the firm’s parent company, Grayscale Investments, filed for its subsidiary’s registration with the SEC two months ago. This action effectively makes Grayscale Trust the pioneering crypto investment entity conferred with that honor.
Taking to Twitter to confirm this news, the firm announced, ” Grayscale Bitcoin Trust hits yet another incredible milestone: Grayscale Bitcoin Trust is now designated as an SEC reporting company.”
A Win for the Entire Digital Currency Industry
It went on to state that the registration not only represented a major achievement for its product but the firm itself and the entire digital currency industry. Additionally, it provided insights into the Trust’s BTC investment. It maintained that its actions were driven by the need to spur investments in BTC by eliminating problems associated with the currency’s purchase, storage, and security.
It reiterated that shareholders of The Trust had an earlier opportunity to liquidate their holdings so long as they adhered to provisions of Rule 144 of the amended Securities Act of 1993. Further, the statutory holding period for their private placement shares would reduce from twelve to six months.
Adherence to SEC Reporting
Moreover, the firm linked some of its restrictions on investments to instruments unregistered with the SEC. However, it expressed the optimism of more investors looking to the Trust for investments. It undertook to start filing its audited financial statements including 10-Qs and 10- Ks together with its quarterly and yearly reports with the SEC.
The reporting standards are similar to those applicable to public firms and exchange-traded products trading on national exchanges.
The statement clarified that the development wouldn’t affect the Trust’s structure. However, it would pull the plug on a redemption program it was running in addition to exiting trading on a national securities exchange. It held that the process of classifying the Trust as an SEC reporting company was voluntary and separate from the attempt to classify it as an ETF, although they are similar