Grayscale Investments, LLC, a New York-based wholly-owned subsidiary of Digital Currency Group, has filed with the Securities and Exchange Commission (SEC) to list the Bitcoin Investment Trust as an exchange-traded fund in a $500 million initial public offering.
According to the official release, the investment objective of the Bitcoin Investment Trust is for the registered Shares to reflect the performance of the value of a bitcoin, before liabilities and expenses of the Trust, as represented by the TradeBlock XBX Index.
“The Shares are designed to provide investors with a cost-effective and convenient way to invest in bitcoin. Because the value of the Shares is tied to the value of the bitcoins held by the Trust, it is important to first understand the investment attributes of, and the market for, bitcoins. Investing in the Shares does not insulate the investor from certain risks, including price volatility”, the document reads.
Initially launched as a private investment vehicle in September 2013, the Trust is not actively managed, and expects to list on the NYSE Arca, under the symbol “GBTC”. According to Finance Magnates, the Bitcoin Investment Trust currently trades over the counter at OTCQX and is the only U.S.-based exchange-listed product that tracks the underlying price of bitcoin.
The offering will be made only by means of a prospectus. Notably, Grayscale Investments, LLC is the sponsor of the Trust, Delaware Trust Company is the trustee of the Trust, The Bank of New York Mellon is the transfer agent and the administrator of the Trust, and Xapo Inc. is the custodian of the Trust, according to the filing.
Founded in 2013, Grayscale Investments builds and supports bitcoin and blockchain companies by leveraging its insights, network, and access to capital. A trusted authority on digital currency investing, it provides market insight and investment exposure to the developing digital currency asset class.
