Bitcoin Investment Trust Provides Update on Possible Bitcoin Cash Distribution
NEW YORK, Sept. 6, 2017 /PRNewswire/ -- Grayscale Investments, LLC, the sponsor (the "Sponsor") of the Bitcoin Investment Trust (the "Trust") (OTCQX: GBTC), announced that it continues to work with the Trust's professional advisors and third-party service providers to understand the implications for the Trust of the fork in the Bitcoin blockchain that resulted in the creation of Bitcoin Cash.
To maximize shareholder value, the Sponsor has begun a process with the Trust's professional advisers to evaluate, among other options, the feasibility of forming an entity to hold the Bitcoin Cash and distributing interests in that entity to the Trust's shareholders. As part of that evaluation, the Sponsor expects to engage in discussion with relevant regulators, including the U.S. Internal Revenue Service and the U.S. Securities and Exchange Commission, to ensure that the Trust continues to be treated as a grantor trust for U.S. federal income tax purposes. Receiving regulatory guidance in respect of such a distribution, while prudent, may be a lengthy process of several months or more. There can be no assurance regarding whether or when the Trust will obtain such guidance.
If and when formal guidance is received, the Sponsor will determine a record date for any potential distribution. However, the Sponsor can offer no assurance as to whether or when shareholders of the Trust might participate in any value attributable to Bitcoin Cash. If and when further updates are made available, the Sponsor intends to disseminate relevant information to the Trust's shareholders.
About Grayscale Investments, LLC
Founded in 2013, Grayscale Investments, LLC is a wholly-owned subsidiary of Digital Currency Group, Inc., which builds and supports bitcoin and blockchain companies by leveraging its insights, network, and access to capital. A trusted authority on digital currency investing, Grayscale Investments, LLC provides market insight and investment exposure to the developing digital currency asset class.
Grayscale Investments, LLC is headquartered in New York City.
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