Grayscale Investments LLC, a wholly-owned subsidiary of Digital Currency Group, Inc., recently filed to list its Bitcoin Investment Trust (BIT) on the New York Stock Exchange (NYSE) in a $500 million initial public offering, according to a Securities and Exchange Commission (SEC) filing. Shares of the trust, which have traded over the counter, have traded at a premium to the bitcoin price, according to Marketwatch.
The trust, which launched in 2013 and exclusively invests in bitcoin, is one of the few options available to institutional investors who seek to exposure to bitcoin. BIT began trading on the OTCQX market May 4 under the ticker symbol GBTC.
Restrictions On Share Purchases
The offering will be made only by means of a prospectus. According to the SEC filing, the shares can be purchased from the trust only in one or more blocks of 100 shares. The trust issues baskets (100 shares) to certain authorized participants. Each authorized participant must be a registered broker-dealer and have entered into a participant agreement with the sponsor.
The trust is currently in discussions with KCG Americas LLC and Wedbush Securities to serve as authorized participants.
The Bank of New York Mellon will serve as the transfer agent for shares of the fund. Xapo Inc., a bitcoin wallet, will act as custodian of the BIT bitcoins.
As of Sept. 30, 2016, the trust’s net asset value was $102,639,992 and its net asset value per share was $56.94. As of Sept. 30, 2016, its bitcoin holdings were $102,767,265 and its bitcoin holdings per share was $57.01.