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.

What Happened

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.

This has effectively made the Grayscale Bitcoin Trust the first cryptocurrency investment vehicle to become an SEC reporting company, it said in a statement.

Grayscale offers its services as an asset manager to accredited investors seeking to invest money in bitcoin as a 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 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 SEC along with other materials, including corporate changes.

Why It Matters

The move from Grayscale comes at a time when bitcoin as an investment is finding increased popularity with millennials.

According to a report from Charles Schwab, more millennials preferred to invest in Grayscale Bitcoin Trust than in The Walt Disney Company, Netflix, or Microsoft.

Price Action

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.

This story originally appeared on Benzinga.

 © 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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