Grayscale Investments Bitcoin Trust (GBTC) Becomes The First Registered SEC Reporting Company

Grayscale Investments' Bitcoin (BTC) Trust is now registered as a Securities and Exchange Commission (SEC) reporting firm.

In May 2015 the trust was the 1st publicly traded BTC investment channel in the over-the-counter market. In November 2019, Grayscale filled with SEC a Form 10 that allows it to make the trust available to investors having restrictions with non-regulated channels. Its Form 10 became effective automatically, sixty days from it's filing date.

Grayscale Bitcoin Trust is the First SEC Reporting Crypto Investment Vehicle

The shares of the trust, registered under the Exchange Act of 1934, means the GBTC is the first SEC reporting crypto investment vehicle. This means it now has to send quarterly and annually reports to the SEC, also to publish any unscheduled events or changes within the corporation and to send audited statements together with other forms required to the SEC. Under its new status, it has to reduce the accredited investors’ statutory period from 12 to 6 months. The changes will have to take place 90 days after the SEC registration approval, and only if the trust meets the Securities Act’s requirements.

The Fund Was Given Private Placement Exemption from SEC in 2013

In 2013, GBTC was given a private exemption from being registered to SEC, but Grayscale decided on its own it needs to give the fund’s compliance standard a boost for investors to trust it more. This is what the Grayscale’s managing director, Michael Sonnenshein, had to say about it:

“Grayscale voluntarily pursued this designation and will continue to work within existing regulatory frameworks. Today’s announcement should signal to investors that our regulators are willing to engage with our products and our space as a whole.”

GBTC Has Been a Success in 2019

Over the last year, GBTC has been very successful, having more than $471 private placement total inflow, which is twice more than in 2018. Sonnenshein has explained before that it doesn’t want GBTC to become an ETF, even if its products are similar in structure with ETFs and are modeled after the most popular investment ones.

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Oana Ularu
Oana Ularu
Curious about what’s going on with all the money in the world, Oana is bringing you the latest news in the crypto world. She’s aware of the fact that you need to know everything that’s happening on the financial scene in order to play the cryptocurrency market, so you can count on her to share with you every little detail on what matters.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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