Grayscale’s Bitcoin trust seeks SEC reporting company status

Grayscale, the asset manager behind the GBTC bitcoin trust, files Form 10 to make it the first crypto investment fund to be registered as an SEC reporting company. The SEC has 60 days to review and leave comments or reject it, otherwise the document goes into effect. While the firm already publishes quarterly and annual reports, the new status would require them to file audited financial statements with the SEC, making it a more familiar structure to investors.

Why it matters:

• This designation would open the fund to a much wider pool of investors who cannot otherwise invest in non SEC-reporting companies. It also allows investors who purchased in a private placement to sell their shares after six months, instead of a year.
• This move should not be misconstrued as an ETF filing, however, the improved disclosure and risk reporting should be seen favorably by regulators as a step closer to one day allowing the public markets to invest in a bitcoin fund.