Today the Digital asset space has taken another step in its legitimacy among institutional investors.
Grayscale Investments , the world’s largest digital currency asset manager and sponsor of Grayscale® Bitcoin Trust* (OTCQX: GBTC) (the “Trust”), today announced that the Registration Statement on Form 10 that it filed with the Securities and Exchange Commission (“SEC”) on behalf of the Trust has been deemed effective.
What is SEC Form 10?
SEC Form 10 is a filing with the Securities and Exchange Commission (SEC), also known as the General Form for Registration of Securities. It is used to register a class of securities for potential trading on U.S. exchanges. Any company with over $10 million in total assets and 750 or more shareholders is required to file a Form 10 with the SEC. Any company under these thresholds may file a Form 10 voluntarily. The Form 10 registration statement automatically becomes effective sixty days post-filing
The Trust is now an SEC reporting company with its shares registered pursuant to Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).**
What is the Grayscale Bitcoin Trust?
Grayscale Bitcoin Trust enables investors to gain exposure to the price movement of BTC through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping BTC. Now, it is also the first digital currency investment vehicle to attain the status of an SEC reporting company.
Additionally, accredited investors who own or purchase shares from the Trust’s private placement now have an earlier liquidity opportunity as the statutory holding period of shares purchased through the private placement will be reduced from 12 months to 6 months, provided the other requirements under Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”) have been satisfied.***
The Trust will now file its quarterly and annual reports as well as audited financial statements as 10-Qs and 10-Ks with the SEC, along with current reports on Form 8-K, in addition to complying with all other obligations under the Exchange Act. For more information, please refer to the Information Statement, the Form 10 filing, and Grayscale’s FAQ page.
In conclusion this announcements entrenches digital assets as more than a just speculative asset among retail traders. Grayscale and the Digital Currency Group has shown us all that regulatory compliance is the route to the success of all digital assets. We are likely to see their other fund products (BCH, ETH, ETC, XRP, XLM, ZEN, ZEC,LTC, Large Cap Digital Fund ) go through the same process.
Thanks for reading.
Kasezga Tembo, CIO, Zog Capital