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Grayscale Bitcoin Trust Fund receives positive news again! Successfully registered with the SEC.

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Grayscale Bitcoin Trust Fund receives positive news again! Successfully registered with the SEC.

According to the press release, the cryptocurrency investment firm Grayscale Investments' Bitcoin trust fund, Grayscale Bitcoin Trust (GBTC), has officially registered with the U.S. Securities and Exchange Commission (SEC), becoming the first cryptocurrency investment tool to report to the SEC and target traditional investors.

Table of Contents

  • GBTC will need to provide quarterly and annual financial reports to the SEC from now on
  • Total investments in GBTC have exceeded $1 billion since its launch

GBTC was launched by Digital Currency Group subsidiary Grayscale in 2013, and received SEC private placement exemption registration that year, and was approved for listing by the Financial Industry Regulatory Authority (FINRA) in 2015.

In November 2019, Grayscale submitted a registration statement to the SEC, and since more than 60 days have passed since the initial filing, it is automatically effective. Grayscale Investments director Michael Sonnenshein stated:

Grayscale voluntarily registered to elevate its compliance standards and gain the trust of investors, and we will continue to operate within the existing regulatory framework. Today's announcement also signals to investors that regulatory authorities are willing to engage with our products and the industry as a whole.

After submitting Form 10 registration, Grayscale is required to submit financial and risk reports on time. (Image from SEC)

Reports indicate that in addition to quarterly and annual reports, audited financial statements will also need to be submitted to the SEC going forward, following the same standards as traditional exchange products reporting.

Furthermore, previously GBTC investors had to hold the trust fund for 12 months before selling, but now this period has been shortened to 6 months, which is estimated to significantly increase its trading liquidity.

ABM previously reported that GBTC's fund inflows in 2019 exceeded the total of the past 5 years, with Grayscale's total investments in products reaching 1.17 billion. The recent positive news may once again pique the interest of traditional investment institutions.

Further Reading

  • Grayscale's Bitcoin Trust fund has surged by 375% in 4 months
  • Last year's fund inflow exceeded the total of the past 5 years, GBTC Bitcoin Trust Fund makes new progress

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