Grayscale, a large digital asset manager that offers publicly listed funds that hold crypto, has filed a registration statement with the Securities and Exchange Commission for the Grayscale Digital Large Cap Fund.
The Fund is an investment vehicle that allows investors to participate in asset allocations that incorporate digital assets by using the Fund’s shares.
Grayscale states that this move reflects Grayscale’s commitment to move Grayscale Digital Large Cap Fund forward through the product pipeline as part of Grayscale’s roadmap to launching digital currency ETFs (exchange-traded funds).
The Form 10 may be viewed here.
The investment objective of the Fund is for the shares to reflect the value of the fund components held by the Fund as determined by reference to the Digital Asset Reference Rates, less the Fund’s expenses and other liabilities. The Fund seeks to hold Fund Components that have market capitalizations that collectively constitute at least 70% of the market capitalization of the entire digital asset market. The Fund intends to hold a market capitalization-weighted portfolio that is reviewed for rebalancing on a quarterly basis to meet the Target Coverage Ratio.
The filing with the SEC is voluntary and if it were to become effective, would designate Grayscale Digital Large Cap Fund as an SEC reporting company.
Shares in the Fund currently trade on OTC Markets, which is an ATS and subject to slightly different rules than a regulated exchange.
Recently, the SEC issued a staff statement cautioning investors who purchase shares in mutual funds that have exposure to Bitcoin futures. Grayscale does not currently invest in futures.
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