- Grayscale Digital Large Cap Fund marks the fourth publicly-quoted investment product
- The premium on GBTC fall by 50%, analyst says BTC price to follow with 30-40% drop
Grayscale Investments, the world’s largest currency asset manager has received FINRA approval for the public quotation of eligible shares of Grayscale Digital Large Cap Fund under symbol GDLCF on OTC markets, announced the company on Monday.
This will mark the introduction of the first publicly quoted security in the US, deriving value from different digital currencies.
DLC is an open-fund managed by Grayscale and the fourth publicly-quoted investment product after Grayscale Bitcoin Trust, Grayscale Ethereum Trust, and Grayscale Ethereum Classic Trust.
This product enables investors to gain exposure to a diversified basket of large cap digital currencies — 80.3% Bitcoin (BTC), 9.9% Ethereum (ETH), 5.8% XRP, 2.2% Bitcoin Cash (BCH), and 1.8% Litecoin (LTC) — via an investment vehicle.
Grayscale has been providing private placement to accredited investors through DLC since February 2018 and had 3,194,900 Shares outstanding as of Sept. 30.
For now, there is no trading volume in the Shares’ public quotation. It won't be available until the Shares are DLC eligible that GDLC is expecting to receive soon.
Meanwhile, Premium on GBTC Fall, BTC to Follow?
The premium on GBTC has taken a hit that according to analyst Timothy Peterson means Bitcoin price would soon take a fall of 30-40% as well because,
“In the past, changes in GBTC premium have been predictive of BTC price levels weeks in advance.”
— Timothy Peterson (@nsquaredcrypto) October 11, 2019
Whenever BTC price goes above the GBTC premium, it drops “substantially.” And a gap has opened up yet again as GBTC’s premium fell from $4.00 per share to $2.00 per share. This he says implies that bitcoin’s price should fall to $6,000.
The relationship between GBTC premium and BTC price hasn't been stable or predictable over time but the analyst says fundamentals also value BTC at about $6,000.
“It appears that institutional and long-term US investors in GBTC are expecting this price level for bitcoin as well,”