Bitcoin

Bitcoin Investment Trust Ups Its Proposed IPO Size to US$1bn

JP Buntinx | May 5, 2017 | 2:00 pm
trust
Bitcoin

Bitcoin Investment Trust Ups Its Proposed IPO Size to US$1bn

JP Buntinx | May 5, 2017 | 2:00 pm

The concept of a Bitcoin ETF continues to spark the imagination. Such an investment vehicle provides a convenient gateway for mainstream investors. Until that happens, though, we can only dream of such a vehicle. Bitcoin Investment Trust, a company seeking SEC approval for its IPO, remains optimistic. In fact, the trust has increased its IPO size to US$1bn all of a sudden.

Grayscale makes no bones about what they want to achieve with the Bitcoin Investment Trust. The shares are the first publicly quoted securities deriving value from the Bitcoin price. Given the bull run Bitcoin has been on these past few months, the company has gotten a lot of attention. This also bodes well for their upcoming IPO, assuming that will get approved in the long run.

A Bold Plan For Bitcoin Investment Trust

The process of filing for IPO has been ongoing for some time now. Barry Silbert field all of the paperwork several months ago. However, the SEC has yet to approve or reject this proposal. At the time of filing, BIT aimed for a US$500m valuation. That seems like a steep amount, yet things have changed quite a bit ever since. An updated filing shows the BIT proposed size has now doubled to US$1bn.

Considering how the Bitcoin Investment Trust is a public market to mainstream Bitcoin exposure, this is quite big news. Even though the IPO shares a lot of similarities with a Bitcoin ETF, Grayscale feels it is a more favorable approach. To be more specific, the company is confident the SEC will approve their IPO.

It remains to be seen if that will be the case, though. The SEC has not looked kindly upon Bitcoin ETF proposals. They may still reject the Bitcoin Investment Trust IPO filing for the same reason. Bitcoin markets are prone to volatility, which no one can deny. However, BIT is already publicly traded, which may give it a leg up over Bitcoin ETF filings.

Increasing the IPO size to US$1bn is still a big gamble, though. At the same time, global demand for Bitcoin is increasing. It only makes sense the Bitcoin Investment Trust wants to capitalize on this momentum. Financial firms are also warming up to Bitcoin as of late. It is evident the SEC has some very important decisions to make in the coming months.  These are very exciting times for Bitcoin, that much is certain.

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