Tanya Abrosimova
Independent Analyst
- The company expands its offering with a new crypto-based index fund.
- The fund will include top-five digital assets.
Grayscale Investments obtained permission from the Financial Institutions Regulatory Agency (FINRA) to launch a cryptocurrency-based publicly traded index fund.
The securities of the Digital Large Cap Fund (DLC) will be traded on the OTC market under the ticker symbol GDLCF, according to the press release, published by the company.
DLC will become the fourth publicly traded Grayscale product, with the Bitcoin Trust (GBTC), Ethereum Trust (ETHE) and Ethereum Classic Trust (ETCG) previously launched. In the future, Grayscale intends to launch all its products on an over-the-counter stock trading system and thus make them available to accredited investors.
“The bitcoin trust is one of the most liquid securities on OTCQX market daily. To our knowledge, this is the first diversified digital currency offering going on the U.S. public market,” Grayscale managing director Michael Sonnenshein said in the interview with CoinDesk.
The fund’s return amounted to 74.8% since the beginning of the year. Now, many investors will be able to invest in cryptocurrencies using the usual tools of the financial market.
DLC includes the most liquid crypto assets, which account for more than 70% of total market capitalization.
“DLC provides exposure to a diverse selection of digital currencies that meet Grayscale’s fund construction criteria through a market capitalization-weighted portfolio (Fund Components). As of September 30, 2019, DLC’s Fund Components were a basket of 80.3% Bitcoin (BTC), 9.9% Ethereum (ETH), 5.8% XRP, 2.2% Bitcoin Cash (BCH), and 1.8% Litecoin (LTC),” according to the press release.
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