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Crypto Asset Manager Grayscale Files Confidentially for US IPO
Grayscale Investments LLC has filed confidentially for a US initial public offering, marking another step for cryptocurrency-related companies entering public markets as digital assets, led by Bitcoin, hit record highs.
The crypto asset manager announced that it submitted a draft registration statement on Form S-1 to the US Securities and Exchange Commission. The number of shares to be registered and the price range have yet to be determined.
Founded in 2013, Grayscale launched the first publicly-traded Bitcoin fund and the first Ethereum investment fund. The company now manages over $33 billion in assets and offers more than three dozen products.
Grayscale declined to comment further due to a regulatory quiet period linked to the active filing.
The move comes a few months after Gemini, backed by the billionaire Winklevoss twins, filed for an IPO. It also follows the debut of stablecoin issuer Circle Internet Group Inc. in June, further embedding crypto technologies in mainstream finance. Circle’s $1.1 billion IPO has been the most notable crypto debut since Coinbase Global Inc. went public in a 2021 direct listing.
Companies often pursue confidential IPO filings to maintain greater control over the process and limit reputational risk. This approach enables engagement with regulators and a chance to respond to SEC feedback away from public scrutiny. Announcing a confidential filing publicly can also serve strategic purposes, such as building market momentum and gauging investor interest.
Grayscale is recognized as a key player in getting spot-Bitcoin exchange-traded funds approved in the US. The firm, part of Digital Currency Group, succeeded in a federal court bid in 2023 to transform its Grayscale Bitcoin Trust into the first US ETF investing directly in Bitcoin. Subsequently, a dozen spot-Bitcoin ETFs were launched, including those by BlackRock Inc. and Fidelity Investments Inc.
The Grayscale Bitcoin Trust ETF, valued at $21 billion, has now been surpassed by BlackRock’s iShares Bitcoin Trust ETF, which has triple the assets. Grayscale's GBTC has a 1.5% expense ratio, while BlackRock's IBIT carries only 0.25%.
This year, Bitcoin has reached multiple record highs, now trading at $120,000 for the first time amid rising investor enthusiasm. The upcoming consideration of key industry legislation during the US House of Representatives' “Crypto Week” has bolstered confidence in Bitcoin among institutional investors.
Grayscale is expected to go public later this year based on typical IPO timelines, though the exact timing will depend on market conditions.
This article has been published in Bloomberg via Yahoo News.
