New York-based digital asset management fund Grayscale Investments will soon be listing shares of its diversified cryptocurrency portfolio after it secured approval from both the United States Financial Industry Regulatory Authority (FINRA) and the Depository Trust Company (DTC). The fund will be listed on the over-the-counter (OTC) marketplace OTCQX® Best Market under the symbol: GDLCF (which stands for the Grayscale® Digital Large Cap Fund). Announcing the news on Friday, Grayscale stated that this will be the first of its kind cryptocurrency fund to be listed for public trading but not the first product from the investment asset manager.
Launched in 2018, the Digital Large Cap (DLC) fund has been constituted by the leading cryptocurrency assets which together represent about 70% of the entire market capitalization. As of September 30th, 2019 the asset composition of the DLC was Bitcoin, Ethereum, Ripple’s XRP, Bitcoin Cash and Litecoin each allocated for 80.6%, 9.2%, 6.0%, 2.5%, and 1.7% respectively. Each publicly listed share of the GDLCF will have the following composition as constituted on September 30th: 0.00049043 Bitcoin (BTC), 0.00283525 Ethereum (ETH), 1.13609958 XRP, 0.00049348 Bitcoin Cash (BCH), and 0.00160253 Litecoin (LTC).
The GDLCF becomes the fourth publicly listed product launched by Grayscale. The first three are the Grayscale® Bitcoin Trust (GBTC), Grayscale® Ethereum Trust (ETHE) and Grayscale® Ethereum Classic Trust (ETCG) all listed on the OTC Markets. The obvious difference being that these three investment products track the prices of their individual underlying assets but the DLC fund tracks the prices of a bunch of assets – five as of launch time. The number of assets tracked could change depending on the performance of the individual assets and their market share on the overall cryptocurrency market capitalization. Reconstitution will be done every end of the quarter.
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.
Said Matthew Beck, Grayscale’s Investments and Research Director.
Grayscale’s investment products operate under the same principle and that is allowing investors the opportunity to invest in high risk and highly technical asset classes without the hustle of maintaining wallets and storing private keys. Essentially making it easier to invest in cryptocurrency for all types of investors.