- Trading for the publicly quoted shares of Grayscale Digital Large Cap Fund will soon begin under the symbol GDLCF.
- It will be the first publicly traded security in the U.S.
- Investors will be able to buy and sell freely tradable shares under the symbol GDLCF.
Grayscale is a leader in digital currency asset management and trading for the publicly quoted shares of Grayscale Digital Large Cap Fund will soon begin under the symbol GDLCF. This will make GDLCF the first publicly traded security in the U.S. and it will derive value from a diverse selection of digital currencies.
It will trade under the symbol GDLCF on the OTCQX® Best Market. Investors will now be able to buy and sell freely tradable Grayscale Digital Large Cap Fund shares under the symbol GDLCF through their investment accounts just like they would any other unregistered securities.
It will now be easier for people to gain access to a group of large-cap cryptocurrencies without the obstacles of directly buying, storing, and safekeeping digital currencies.
Grayscale’s Director, Investments and Research, Matthew Beck says “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 tool for investors seeking to build more balanced portfolios with higher risk-adjusted returns.”
Market-cap-weighted exposure is provided to the upper 70% of the digital currency asset class via DLC which is an open-ended fund launched by Grayscale.
However, DLC is not registered with the Securities and Exchange Commission and is not subject to disclosure and certain other requirements mandated by U.S. securities laws.
They are evaluated on a quarterly basis and are permitted to hold cash and assets arising as a result of a fork, airdrop, or similar event from time to time.
It will, however, not generate any income and will regularly distribute Fund Components to provide for their current expenses which means that the amount of fund components represented by each share will gradually decrease over time.
As of October 31, 2019, DLC’s Fund Components were a basket of 80.6% Bitcoin (BTC), 9.2% Ethereum (ETH), 6.0% XRP, 2.5% Bitcoin Cash (BCH), and 1.7% Litecoin (LTC).
Shares of GDLCF will soon be available to all investors with access to U.S. securities because GDLCF has received FINRA approval for public quotation and DTC eligibility.
Because the Grayscale Digital Large Cap Fund private placement does not currently operate a redemption program, there are no assurances that the value of the Shares will approximate the value of the underlying assets held by the Fund when traded on a secondary market, like OTCQX.
As such, the shares of the public quotation may trade at a substantial premium over, or substantial discount to, the value of the assets held by Grayscale Digital Large Cap Fund.
GDLCF is Grayscale’s fourth publicly quoted investment product. Grayscale® Bitcoin Trust (OTCQX: GBTC), Grayscale® Ethereum Trust (OTCQX: ETHE), and Grayscale® Ethereum Classic Trust (OTCQX: ETCG) are also publicly quoted and available to all investors with access to U.S. securities.
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