Grayscale Bitcoin Trust (GBTC) – the Bitcoin (BTC) own-and-track fund – has reportedly submitted Form 10 to the US SEC, in an attempt to be the first-ever firm to achieve SEC-reporting status.
Publicly announced by Grayscale on November 19, should the SEC authorized the submitted document, major amendments to numerous operating aspects can occur.
Specifically, if Grayscale successfully achieves its desired status, the trust fund’ structure will see no changes, and will not be included into any US securities exchange. However, Grayscale’s scope and operations are expected to undergo numerous major changes.
Particularly, Grayscale will become an SEC-reporting firm, requiring it to have its share registered to the department, under the Exchange Act. Moreover, SEC authorization is one of a few primary causes for businesses to deny investors of considering trusts, the new status could help Grayscale tap into a greater pool of potential investors. Grayscale will also be subjected to the auditing standards set by the SEC.
“Accredited investors who have previously purchased shares in the Trust’s private placement would have an earlier liquidity opportunity, as the statutory holding period of their private placement shares would be reduced from 12 to 6 months.” The firm believed the successful end result will be advantageous to accredited investors.