Introducing the Grayscale Digital Large Cap Fund (GDLCF)
Grayscale Investments is shaking things up in the crypto world once again! Soon, you’ll see the Grayscale Digital Large Cap Fund (DLC) hitting the trading floor, ready to take public trading by storm. This fund, packed with a mix of the top five cryptocurrencies, including Bitcoin and Ether, is set to debut on the OTCQX Best Market, giving investors a snazzy way to dive into the crypto pool.
The Fund’s Composition: What’s Inside?
Grayscale DLC isn’t just any fund; it’s like a VIP lounge for cryptos that catered to the top 70% of the digital currency market. As of October 31, 2019, the nifty little fund held:
- 80.6% Bitcoin
- 9.2% Ether
- 6% XRP
- 2.5% Bitcoin Cash (BCH)
- 1.7% Litecoin (LTC)
Every quarter, they evaluate the composition of the fund, which means it could also hold cash and other gleaming assets from things like forks and airdrops. It’s like crypto investing with all the tasty bits added in!
A Proud Family Member of Grayscale’s Investment Products
Grayscale is like the proud parent of multiple crypto investment products! The GDLCF will be the fourth member of this family, joining the likes of the Grayscale Bitcoin Trust, Grayscale Ethereum Trust, and Grayscale Ethereum Classic Trust. Essentially, if you’re keeping track, that’s a pretty robust lineup!
Getting the Green Light: FINRA and DTC Approval
To get GDLCF rolling, Grayscale had to jump through some regulatory hoops. Thankfully, they got a thumbs-up from the U.S. Financial Industry Regulatory Authority (FINRA) in mid-October, followed by the all-important Depository Trust Company (DTC) eligibility. After securing these approvals, they were ready to get the wheels in motion for public trading. Just don’t ask for the launch date yet; that’s still under wraps!
Status with the SEC: A Compliance Dream?
Interestingly, the DLC fund is not yet registered with the U.S. Securities and Exchange Commission (SEC), meaning it dodges a few heavyweight disclosure requirements. However, Grayscale isn’t just twiddling its thumbs; they’ve filed with the SEC to become the first crypto fund to report accordingly! Talk about stepping up to the regulations!
Institutional Investors Are Still All the Rage
In case you were wondering who’s throwing money at Grayscale, let me tell you—it’s the heavyweights! Grayscale recently enjoyed a solid quarter, boasting record inflows of over $254 million in Q3 2019, with a staggering 84% of that coming from institutional investors, predominantly hedge funds. So, if you’ve ever thought about getting into this crypto thing, the big guys piling on in might just be the push you need!
