Grayscale Investments announced that the Trust will resume the private placement of its shares. The Trust private placement is offered on a periodic basis throughout the year and is now currently available to accredited investors for daily subscription.
The Trust’s investment objective is for the value of its shares to reflect the price performance of Bitcoin (based on Bitcoin per Share), less fees and expenses. The Trust is solely and passively invested in Bitcoin and was created for investors seeking exposure to Bitcoin through a traditional investment vehicle. As of July 8, 2019, the Trust has more than $2.66 billion in assets under management (AUM) and each Share of the Trust represents 0.00097876 Bitcoin.
Following a one-year holding period, shareholders who invest in the private placement may elect to sell their shares at prices dictated by the market under the symbol: GBTC. Because the Trust does not currently operate a redemption program, there can be no assurance that the value of the Shares will approximate the value of Bitcoin held by the Trust when traded on a secondary market and the Shares may trade at a substantial premium over, or discount to the value of the Bitcoin held by the Trust.
The Trust is a traditional investment vehicle with shares titled in the investor’s name, providing a familiar structure for financial and tax advisors and easy transferability to beneficiaries under estate laws. Additionally, shares are eligible to be held in certain IRA, Roth IRA, and other brokerage and investor accounts.
The private placement shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws, and the shares are being offered pursuant to an exemption from registration provided by Rule 506(c) of Regulation D under the Securities Act and in reliance on similar exemptions under applicable state laws. An investment in the shares of the Trust is suitable only for sophisticated, well-informed investors, and investors will be required to represent that they are accredited investors as such term is defined in Rule 501(a) of Regulation D under the Securities Act.
As a result, the shares are restricted shares and are subject to a one-year holding period in accordance with Rule 144 under the Securities Act. In addition, the Trust does not currently operate a redemption program. Because of the one-year holding period and the lack of an ongoing redemption program, shares should not be purchased by any investor who is not willing and able to bear the risk of investment and lack of liquidity for at least one year. No assurances are given that after the one-year holding period, there will be any market for the resale of shares, or, if there is such a market, as to the price at such shares may be sold into such a market.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.