Grayscale Investments, a subsidiary of the Digital Currency Group, on Tuesday, said it had become a reporting company with the United States Securities and Exchange Commission.
The company had filed for the status in mid-November, and the form 10 filing was deemed effective as per protocol at the end of 60 days.
Grayscale offers its services as an asset manager to accredited investors seeking to invest money in Bitcoin (BTC) as security, without needing to make direct purchases or be responsible for its safekeeping.
As a result of the new status, the statutory holding period for the investors will reduce from an earlier 12 months to 6 months.
Grayscale would also be required to publicly file its quarterly and annual financial reports with the S.E.C. along with other materials, including corporate changes.
Why It Matters
The move from Grayscale to inspire greater confidence comes at a time when Bitcoin as an investment is finding increased popularity with millennials.
According to a report from Charles Schwab Corporation (NYSE: SCHW), more millennials preferred to invest in Grayscale Bitcoin Trust than in The Walt Disney Company(NYSE: DIS), Netflix Inc.(NASDAQ: NFLX), Microsoft Corporation(NASDAQ: MSFT).
Grayscale's shares closed 3.28% lower at $9.74 in the OTC market on Tuesday. The shares traded further 0.21% lower in the after-hours market.