Grayscale obtains approval to list the first publicly-traded digital currency

Grayscale investments have recently obtained regulatory approval to list the first publicly-traded digital currency index fund. After getting consent from the Financial Industry Regulatory Authority (FINRA), the Digital Large Cap Fund (DLC) will be listed on over-the-counter markets and trade as “GDLCF.” 

The DLC is the fourth publicly-quoted investment product by Grayscale. Other Grayscale’s investment products are Bitcoin Trust (OTCQX: GBTC), Ethereum Trust (OTCQX: ETHE), and Ethereum Classic Trust (OTCQX: ETCG). Grayscale is aiming to list all ten of its investment products on the public market, which is presently open to accredited investors. All investors can avail of the new product with access to U.S. securities. Grayscale managing director Michael Sonnenshein told CoinDesk:

“The bitcoin trust is one of the most liquid securities on the OTCQX market daily. To our knowledge, this is the first diversified digital currency offering going on the U.S. public market.”

Sonnenshein stated that its aim is to provide investors with broad-based exposure to cryptocurrencies with one vehicle through DLC. The fund has seen a 74.8% return year-to-date. Investors are exposed to the largest cryptocurrencies based on market capitalization by the DLC at any time. The fund targets upwards of 70% of the digital currency market.

While picking cryptocurrencies for the fund, other factors, including liquidity, operational requirements, and the availability of custodial solutions, are also considered. Grayscale, which is worth $2.2 billion, opened the funds to accredited investors in Feb 2018. Almost 3.2 million shares of DLC were outstanding as of Sept. 30, 2019.