Grayscale Investments has been granted regulatory approval to allow the public to quote shares in its diversified crypto fund. This product is the only diversified offering of Grayscale Investments and invests in five major cryptocurrencies. The firm also offers nine single-asset funds that can be quoted publicly.
Fund Gains FINRA Approval
Digital currency asset manager Grayscale Investments announced Monday that shares of its diversified crypto fund have been approved for public quotation by the U.S. Financial Industry Regulatory Authority (FINRA), a government-authorized nonprofit organization that oversees U.S. broker-dealers. Grayscale Digital Large Cap Fund (DLC), shares will be listed on OTC markets under the symbol GDLCF. According to the company:
This is the debut of the first U.S.-issued security that derives value from a variety of digital currencies. Check out more about Charity Coin
Diversified Crypto Fund receives U.S. regulatory approval
Grayscale Digital Large Cap Fund shares as of Oct. 11.
DLC is an open-ended, non-restricted fund that “provides exposure for the most liquid digital assets through market-weighted portfolios,” according to the firm. Its components consisted of five cryptocurrencies as of September 30, including 80.3% BTC and 9.9% ETH. It aims to cover 70%, and the components of the fund are reviewed quarterly. The fund currently holds $15.7 million in assets and 3,194,900 shares outstanding.
Since February 2013, the fund has been available for private placement to accredited investors. The firm clarified that shares created by DLC’s private placement are eligible for sale into the public markets after a one-year period of holding under Rule 144, Securities Act.
Funds for Single-Asset
Grayscale also offers a variety of single-asset funds that offer exposure to BTC and ETC. The firm had approximately $2.1 billion of assets as of September 30.
Diversified Crypto Fund receives U.S. regulatory approval
Grayscale’s single asset investment funds
Grayscale stated that DLC was its fourth publicly-quoted investment product and is available to all investors who have access to U.S. securities. Other options include Ethereum Trust (OTCQX : ETHE), Bitcoin Trust (OTCQX : GBTC), and Ethereum Classic Trust. Institutional and individual accredited investors can also access other investment funds.
None of these funds have been registered with the Securities and Exchange Commission, which has yet not approved the first bitcoin exchange-traded mutual fund (ETF). The commission rejected last week the most prominent proposal it was examining, which was submitted by NYSE Arca Inc. to the Bitwise Bitcoin Exchange Traded Fund. Cboe BZX Exchange Inc. retracted its proposal for Vaneck Solidx Bitcoin Trust earlier this month. It is now available under Rule 144A.
