Grayscale Bitcoin Trust now a SEC-reporting company
Two months ago, Grayscale Investments filed a Registration Statement on Form 10 with the United States SEC on behalf of Grayscale Bitcoin Trust. Today, January 21, the SEC approved the registration, thereby making Grayscale trust the pioneer digital currency investment vehicle to become an SEC reporting firm.
The firm revealed on Twitter:
ANNOUNCEMENT: Grayscale Bitcoin Trust hits yet another incredible milestone: Grayscale #Bitcoin Trust is now designated as an SEC reporting company. What are the 6 things you need to know about it? https://t.co/Q18eE7Tfmw$BTC pic.twitter.com/mb8O0EkO71
— Grayscale (@GrayscaleInvest) January 21, 2020
The firm stated that it represents an awesome milestone for its product, the firm itself, as well as the digital currency industry. It provided explanations about the sole and passive investment in BTC by the Trust, helping investors in gaining exposure to Bitcoin without problems associated with direct buying, storing, and securing.
As long as what is required under Rule 144 of the amended Securities Act of 1993 is in place, accredited investors owning shares in the private placement of the Trust now have an earlier liquidity opportunity. There will also be a reduction in the statutory holding period of their private placement shares from twelve to six months.
The firm mentioned some institutions’ restrictions on investments to instruments unregistered with the SEC and the possibility of more investors to start considering the Trust as an investment vehicle. It was stated that the Trust would start filing its audited financial statements as 10-Qs and 10-Ks with the SEC, as well as its yearly and quarterly reports.
The reporting standards are similar to those applicable to public firms and exchange-traded products trading on national exchanges.
The post noted that there will be no changes to the trust’s structure and will stop operating a redemption program and stop trading on a national securities exchange. It was maintained that the process involved in classifying the Trust as an SEC reporting company was voluntary and not the same as the attempt to classify it as an ETF, although they are similar.
Featured image courtesy of Shutterstock. Source: Cryptopress.