The Securities and Exchange Commission (SEC) and Bitcoin have been the subject of an increasing number of discussions over the past few years, and the most recent information suggests that this hasn’t stopped in 2022.
The frequency of 13F filings referencing Bitcoin by quarter climbed as the year progressed into 2021, although it decreased somewhat in the second and third quarters of last year to 60 mentions, in line with the on-chain data provided by CoinMetrics.
However, as more discussion takes place regarding the regulation and adoption of the flagship digital asset, the number of times the SEC mentioned ‘Bitcoin’ in its filings for the fourth quarter that ended at the end of January 2022 increased by 158%, to 155 mentions, as a result of the increased volume of discussion.
SEC filings reveal interest in institutional assets
It’s worth mentioning that SEC filings might be valuable in determining institutional interest in cryptocurrency assets.
For instance, investment funds having at least $100 million in assets under management (AUM) that operate and do business in the United States are required to file a 13F filing with the SEC on a quarterly basis, disclosing each fund’s holdings to the public.
Whatsmore, it’s not necessary to record all of a fund’s assets, but it is necessary to report a subset of those investments, including any stakes in spot Bitcoin. Trusts and other crypto-related investment entities, on the other hand, are often mentioned.
Trusts, such as Grayscale’s Bitcoin Trust (GBTC), the biggest Bitcoin trust by net asset value, have become a popular option for institutions to obtain exposure to Bitcoin. Between 2020 and 2021, GBTC’s BTC holdings climbed significantly in tandem with the growth in the number of investment funds that included BTC in their 13F filings during that time period.
Til late 2021, when 13F filings referencing Bitcoin increased, GBTC holdings had plateaued; however, this represents the debut of Bitcoin ETFs such as the ProShares’ Bitcoin Strategy ETF (BITO) and Valkyrie’s Bitcoin Strategy ETF (BTF) in October 2021, which are now disclosed on 13F filings, accounting for some of the growth in distinct organizations.
Consequently, in order to gauge the expanding presence of cryptocurrency in the US economy, it might be useful to examine public SEC filings.