In a recent press release, Grayscale Investments announced that it had received FINRA’s approval for its Digital Large Cap Fund shares. The shares will trade under the GDLCF symbol on OTC Markets. This is the first time that a US regulator has approved a publicly-quoted security that derives its value from cryptocurrencies.
About the Digital Large Cap Fund (DLC)
The DLC operates as an open-ended fund, which is managed by Grayscale. Via this fund, institutional investors can gain exposure to price movement in the crypto market without having to worry about various challenges such as safe storage of crypto and legal repercussions.
The DLC has been operational since February 2018. Its shares will become available for public trading after a holding period of one year, which complies with Rule 144.
Trading volume for the share’s public quotation will only be available once they receive DTC approval. GDLC is upbeat about getting the approval soon. Investors will then be allowed to trade the tradable DLC shares via investment accounts as they would other securities that are unregistered.
The Structure of the Fund
DLC gives accredited investors access to a wide selection of digital coins, which must meet strict standards created by Grayscale. As of September 30, the fund was made up of 1.8% LTC, 2.2% BCH, 5.8% XRP, 9.9% ETH, and 80.3% BTC.
Grayscale Maintains a Positive Outlook
This recent announcement marks a positive development for the company’s fortunes in H2 2019. In July 2018, the company released a report titled Digital Asset Investment Report, which showed that institutional investors were still interested in crypto. This was despite the end of the crypto market Bull Run that started in April that year.
A director at the fund recently said that while media reports indicated there was little interest from institutional investors, this was not a reflection of the reality on the ground. The official said that institutional investors had been investing with them for a long time.
As the price of Bitcoin has tanked, coverage of institutional interest in the crypto sector has also fallen. The anticipated launch of a Bitcoin ETF was expected to have ramped up institutional interest in the sector but the SEC rejected the application.
About Grayscale Investments
Grayscale Investment is the largest crypto asset management firm globally. The company has a proven record of success in this sector. Combined with its experience in the sector, it offers investors the tools they need to make the right choices when entering the crypto space.
The company is part of the Digital Currency Group, whose aim is to build better products for investors all around the world. It has worked tirelessly, in collaboration with others in the sector, to eliminate the barriers to entry for both individual and institutional investors. This has helped many reap the benefits of gaining exposure to crypto coins. With its institutional-grade investment tools, the company is fostering a new feature where digital currencies are seen as a mainstream investment.
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