Grayscale Commences Diversified Large Cap Fund Trading
In February 2018, Grayscale Investments, the sponsor of the Bitcoin Trust (OTCQX: GBTC) announced the Grayscale Digital Large Cap Fund, an investment vehicle that captures a basket of the top digital assets within the cryptoconomy. A year later on November 22, the firm revealed the diversified crypto investment product is now available to the public as trading commences with publicly-quoted shares under the symbol: GDLCF.
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Last year, Grayscale Investments announced the launch of the diversified GDLCF and four single-asset cryptocurrency trusts for XRP, BCH, LTC, and ETH. Grayscale is well known for launching the first publicly traded BTC investment vehicle (OTC:GBTC) in the U.S. in 2013. Now according to a recent blog post, Grayscale says that GDLCF will be available to trade using over-the-counter (OTC) platform OTCQX Best Market. “GDLCF is the first publicly traded security in the U.S. deriving value from a diverse selection of digital currencies,” Grayscale said on Friday. This will give investors the ability to purchase and sell GDLCF using their investments accounts similarly to traditional unregistered securities. “You can soon gain exposure to a basket of large-cap digital currencies without the challenges of buying, storing, and safekeeping digital currencies directly,” the firm stressed. Grayscale’s Director of Investments and Research, Matthew Beck, emphasized during the announcement that “digital assets represent a new and important alternative source of return for investors.”
“[Cryptocurrencies’] unique market opportunities, use cases, and risk exposures can also enhance diversification,” Beck further suggested. “A well-constructed, diversified investment product like Grayscale Digital Large Cap Fund is an important tool for investors seeking to build more balanced portfolios with higher risk-adjusted returns.”
Grayscale Digital Large Cap Fund Receives FINRA Approval for Public Quotation
The GDLCF launch on OTCQX Best Market follows Grayscale registering GBTC using a Form 10 Registration Statement with the U.S. Securities and Exchange Commission (SEC). The filing would designate the GBTC trust as an SEC-approved reporting company and register its shares. If approved by the SEC, then Grayscale’s Bitcoin Trust could be the first digital currency vehicle to be greenlighted by the SEC with a legal reporting status. The latest Grayscale blog post also noted that GDLCF received FINRA approval for public quotation alongside DTC eligibility. DTC issuance grants can take up to four weeks and it’s possible Grayscale’s GDLCF will be able to be deposited through DTC, the largest securities depository in the world.
Grayscale highlights that as of October 31, 2019, the components of the large-cap fund consist of a basket of 80.6% BTC, 9.2% ETH, 6% XRP, 2.5% BCH, and 1.7% LTC. “[GDLCF is an] open-ended fund that provides market-cap-weighted exposure to the upper 70% of the digital currency asset class,” Grayscale explains. The basket fund will be the company’s fourth publicly quoted investment product following GBTC, the Ethereum Trust (OTCQX: ETHE), and the Ethereum Classic Trust (OTCQX: ETCG). Investors will still have to wait for the public quotation approval for the Bitcoin Cash Investment Trust, Litecoin Investment Trust, and XRP Investment Trust. “A well constructed, diversified investment product like Grayscale Digital Large Cap Fund is an important tool for investors seeking to build more balanced portfolios with higher risk-adjusted returns,” Grayscale’s Beck concluded on Friday.
What do you think about Grayscale’s Digital Large Cap Fund (GDLCF)? Let us know what you think in the comments below.
Image credits: Shutterstock, Grayscale Investments, and Pixabay.
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