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Scoring yet another ‘golden boot’ for the global crypto team, Grayscale Investments brings home the first ever publicly-quoted security which derives its value from cryptocurrencies.
Indeed, the firm is living up to its reputation as the world’s largest digital asset manager. You will recall that the firm already has three Trusts – Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG). All of which are publicly quoted.
As of yesterday, September 14th, the firm received the necessary FINRA approval for public quotation of its Digital Large Cap Fund (DLC), making it even safer to trade digital assets. Originally, DLC was created to help investors (including institutional and individual investors) to enjoy the fun of trading digital assets without the fear that comes with it.
DLC takes away at least some of the fears and risks of trading digital assets by providing investors with total exposures to the price movement of the diversified crypto market – up to 70% of the digital asset market. It is more like laying all the cards on the table and literally doing all the hard lifting for you.
The Crypto Fund Recipe
Using a fund construction criteria termed Fund Component, DLC is able to analyze the crypto market and provide an in depth insight of the market to investors.
As of September 30, 2019, the firm reported a total of “80.3% Bitcoin(BTC)trade, 9.9% Ethereum (ETH)trade, 5.8% Ripple (XRP)trade, 2.2% Bitcoin Cash (BCH), and 1.8% Litecoin (LTC)trade” in its Fund Component basket. And each of its shares reportedly represents 0.00049043 Bitcoin, 0.00283525 Ethereum, 1.13609958 XRP, 0.00049348 Bitcoin Cash, and 0.00160253 Litecoin.”
Thanks to this trading method, crypto investors can now enjoy the lucrative crypto world without the trouble of keeping, selling, or buying digital assets.
The digital asset manager completed its private placement as early as February 2018, and by the statuary laws, shares created through the DLC’s private placement are eligible to go on sale in the public market. The firm’s record shows over 3 million outstanding shares as of September 30, 2019.
Note: The composition of DLC is subject to regular evaluation. Typically, this is done on a quarterly basis to “to remove existing Fund Components or to include new Fund Components in DLC’s portfolio, in accordance with DLC’s fund construction criteria established by Grayscale. DLC may also hold cash and assets arising as a result of a fork, airdrop, or similar event from time to time.”