Grayscale Bitcoin Trust becomes the first SEC-accountable crypto investment vehicle
Digital Asset Manager Grayscale Investment has officially registered its Bitcoin Trust (GBTC) with the US Securities and Exchange Commission (SEC) as a reporting company.
Grayscale applied for registration on Form 10 in November 2019. More than 60 days have passed since then, which resulted in Grayscale’s application being automatically approved, making it the first company to report its cryptocurrency investing engine to the SEC..
The placement of GBTC securities is closed, which allowed Grayscale to benefit from the statutory exception and avoid the need to register with the SEC, but the company decided to voluntarily raise standards of legal compliance and provide additional confidence to investors..
“Grayscale has voluntarily accepted this status and will continue to operate in compliance with existing regulatory standards,” said Michael Sonnenshine, Director of Grayscale. “Today’s announcement should send a signal to investors that our regulators are willing to work with our products and our space in general.”.
From now on, the administration of the trust will have to submit quarterly and annual reports to the SEC, as well as other documents in accordance with current requirements. Grayscale also intends to reduce the statutory holding period for the securities acquired in a private placement from 12 months to 6. It is expected that this will help institutional investors faster access to liquidity. The change will take effect no earlier than 90 days, provided that the trust meets all requirements under the securities laws.
Grayscale previously reported significant success for GBTC and its business in general in 2019.
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