Bitcoin Bursts onto NYSE in $500 Million IPO

  • Grace Noto
  • January 20, 2017
  • 1

pexels-photo-200574Start the line now, people—bitcoin is now available on the New York Stock Exchange.

Grayscale Investments, a New York based subsidiary of Digital Currency Group, today filed to list its fund, Bitcoin Investment Trust (look for GBTC on the NYSE), on the exchange for a public offering of $500 million. Grayscale began the fund in 2013, for the sole purpose of investing in the cryptocurrency.

Grayscale was unable to comment on the IPO due to federal securities law.

Investing in bitcoin has historically been challenging for investors, though options for trades are present through exchanges such as Bitstamp, which offers trades of bitcoin to both the U.S. dollar and to the Euro. Bitcoin on the NYSE is, however, another level now open to exploration.

From the documents submitted the Securities and Exchange Commission, or the SEC:

The Shares are designed to provide investors with a cost-effective and convenient way to invest in bitcoin. Grayscale Investments, LLC is the sponsor of the Trust (the “Sponsor”), Delaware Trust Company is the trustee of the Trust (the “Trustee”), The Bank of New York Mellon is the transfer agent of the Trust (in such capacity, the “Transfer Agent”) and the administrator of the Trust (in such capacity, the “Administrator”) and Xapo Inc. is the custodian of the Trust (the “Custodian”).

A bank which explored various financial possibilities for the blockchain in 2016, BNY Mellon, agreed to act as transfer agent of the shares. This could be seen as a continuation of the bank’s interest in the technology.

Among other projects in 2016, BNY Mellon developed the “BDS 360” system, a record of its brokerage transactions on the blockchain, and created the Global Innovation Group, a unit aimed at testing new, innovative blockchain solutions.

Shares of the Bitcoin Investment Trust are up 1.28%, and are trading at $118.50 at the time of this reporting.

To learn more about cryptocurrency and the blockchain, join us at Bank Innovation 2017 in San Jose. Please request your invitation here.

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