Grayscale Investments has secured regulatory approval from the U.S. Financial Industry Regulatory Authority (FINRA) to publicly quote shares of its diversified crypto fund, the Grayscale Digital Large Cap Fund (DLC). The approval makes DLC the first publicly quoted security in the United States deriving its value from a diversified selection of digital assets.
Fund Composition and Details
The open-ended fund provides exposure to the top liquid digital assets through a market-cap-weighted portfolio. As of September 30, 2019, the fund’s components were: 80.3% Bitcoin (BTC), 9.9% Ethereum (ETH), 5.8% Ripple (XRP), 2.2% Bitcoin Cash (BCH), and 1.8% Litecoin (LTC). DLC aims to cover approximately 70% of the total cryptocurrency market, with its holdings reviewed quarterly. The fund currently has $15.7 million in assets under management and 3,194,900 outstanding shares.
Since February 2018, DLC had been offered as a private placement to accredited investors. Shares created through the private placement become eligible for public sale after a one-year holding period under Securities Act Rule 144. The fund will trade on OTC markets under the ticker GDLCF.
Grayscale’s Broader Product Suite
In addition to DLC, Grayscale offers nine single-asset investment funds covering BTC, BCH, ETH, ETC, ZEN, LTC, XLM, XRP, and ZEC. As of September 30, the firm managed approximately $2.1 billion in total assets across all products.
DLC is Grayscale’s fourth publicly quoted investment vehicle available to all U.S. securities investors. The others are the Bitcoin Trust (OTCQX: GBTC), Ethereum Trust (OTCQX: ETHE), and Ethereum Classic Trust (OTCQX: ETCG). The remaining funds are limited to institutional and accredited investors. None of the funds are registered with the Securities and Exchange Commission (SEC), which has yet to approve a spot Bitcoin ETF. The SEC recently rejected the Bitwise Bitcoin ETF proposal and earlier saw the withdrawal of the VanEck SolidX Bitcoin Trust application, which subsequently shifted to a Rule 144A offering.
With this regulatory milestone, Grayscale provides U.S. investors a new way to gain diversified crypto exposure through traditional securities accounts, marking a significant step toward mainstream adoption of digital assets.