Bitcoin hits new high, cryptocurrency asset management company Grayscale secretly submits IPO application in the US

At the peak of Bitcoin hitting new highs, Grayscale Investments LLC has secretly filed for its initial public offering (IPO) with U.S. regulators, becoming the latest cryptocurrency-related company planning to go public on the capital market. The crypto asset management company announced on Monday that it had submitted a draft registration statement on Form S-1 to the U.S. Securities and Exchange Commission (SEC). The company stated that the number of shares to be registered and the price range have not yet been determined. According to the typical IPO timeline, the company expects to go public later this year, but the specific timing will depend on market conditions and may be subject to change. Founded in 2013, Grayscale launched the first publicly traded Bitcoin fund and the first Ethereum investment fund. According to information on its official website, the total assets under management by the company exceed $33 billion, offering over thirty investment products. As the application is still in progress, Grayscale declined to provide further comment citing the regulatory quiet period, but noted that it had issued a press release earlier that day. This application comes just months after billionaire brothers Winklevoss-backed cryptocurrency company Gemini filed for IPO in secrecy. Grayscale's application also follows stablecoin issuer Circle (CRCL.US) experiencing a successful listing in June, further solidifying the position of cryptocurrency technology in the mainstream financial system. Circle's IPO marked the most highly anticipated cryptocurrency company listing event since Coinbase (COIN.US) went public in 2021. Companies typically choose to file for IPO confidentially to gain greater control over the process and reduce reputational risks. This enables the company to interact with regulators and respond to feedback from the SEC without public attention. Publicly disclosing a confidential filing can serve as a strategic tool to build market hype and test investor interest. Grayscale is well known for its crucial role in pushing for approval of the first physically backed Bitcoin exchange-traded fund (ETF) in the U.S. The company is a subsidiary of Digital Currency Group, a crypto conglomerate founded by billionaire investor Barry Silbert. In 2023, Grayscale won a legal victory in federal court, successfully transitioning its Bitcoin Trust Fund into the first U.S.-based ETF directly investing in the largest cryptocurrency, Bitcoin. Subsequently, more than a dozen physically backed Bitcoin ETFs were launched, including ones from BlackRock, Inc. and Fidelity Investments. Currently, Grayscale's Bitcoin Trust ETF (GBTC) has been surpassed by BlackRock, Inc.'s iShares Bitcoin Trust ETF (IBIT), which is three times the size of GBTC. Additionally, GBTC has a management fee of 1.5%, while IBIT is only 0.25%. This year, Bitcoin has set multiple records, currently breaking through $120,000 for the first time. Meanwhile, the U.S. House of Representatives is preparing to discuss a series of crucial industry legislation during the upcoming "Crypto Week." The clarification of the U.S. regulatory framework, along with Bitcoin's steady rise amid the chaotic trade policies of former President Trump, have boosted institutional investors' confidence in this asset class.