- Grayscale investments reported over $250 million in registered investments during the Q3 2019 quarter.
- The basket of digital currencies that makes up the new fund includes Bitcoin, Ether, XRP, Bitcoin Cash, and Litecoin.
Grayscale Investments is known for serving the American public as a digital asset management fund, but they are preparing to launch the Grayscale Digital Large Cap Fund (DLC). DLC is a diversified cryptocurrency investment product, which will be available for public trading. Announced on November 22nd, the product will soon be available for over-the-counter share trading with the OTCQX Best Market marketplace, and it already includes five major cryptocurrencies.
DLC was already launched in 2018, presenting as an open-ended fund that offers exposure, based on market cap, upwards of 70% of asset class for digital currency. As was previously announced, this new product will be the first publicly-quoted security, that comes from a collection of digital currencies in the US. Based on data from October 31st, 2019, the basket of digital currencies that makes it up includes 1.7% Litecoin, 2.5% Bitcoin Cash, 6% XRP, 9.2% Ether, and 80.6% Bitcoin.
On this new product, director of investments and research at Grayscale – Matthew Beck – stated,
“Digital assets represent a new and important alternative source of return for investors. Their unique market opportunities, use cases, and risk exposures can also enhance diversification. A well-constructed, diversified investment product like Grayscale Digital Large Cap Fund is an important took for investors seeking to build more balanced portfolios with higher risk-adjusted returns.”
As it enters public trading, it will be available under the symbol GDLCF, making it the fourth investment product to be publicly traded from Grayscale investments. The investment products to precede this include Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG).
The U.S. Financial Industry Regulatory Authority (FINRA) and the Depository Trust Company (DTC) –both had to approve the GDLCF before the shares of the new fund could be quoted on OTC markets. FINRA issued their approval in mid-October this year, and DTC provided their eligibility approval on November 22nd. Now, the public just has to wait for a starting date from Grayscale.
As it stands, Grayscale Investments has not registered with the U.S. Securities and Exchange Commission. The company claims that this new fund is “not subject to disclosure and certain other requirements mandated by U.S. securities laws.” However, the SEC did receive a filing from Grayscale anyway, which makes them the first cryptocurrency fund to report to them. Under the Exchange Act, the Grayscale Bitcoin Trust filed Form 10, which allows them to register their shares.
During Q3 2019, the firm reported $254 million in total registered investments for its products. Predominantly due to hedge funds, about 84% of the investments came from institutional investors to Grayscale.
The full press release regarding the GDLCF can be viewed here: https://gryscl.co/2KLMNJj.