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Grayscale’s Bitcoin dominant large-cap crypto fund becomes SEC reporting firm

grayscale, Grayscale’s Bitcoin dominant large-cap crypto fund becomes SEC reporting firm
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  • Grayscale Investments’ Digital Large Cap (GDLC) fund becomes an SEC-reporting company
  • The crypto asset manager filed three additional registration forms for its BCH, ETC, and LTC funds

JAIPUR (Coinchapter.com) – Grayscale has just achieved another milestone. The New York-based crypto asset management giant’s Digital Large Cap Fund (GDLC) has officially become an SEC-reporting company. The third Grayscale product is to secure an SEC accreditation after the Bitcoin (GBTC) and Ethereum (ETHE) funds. For the digital asset manager, this is the first diversified fund to receive SEC’s nod.

Barry Silbert, Founder, and CEO of the Digital Currency Group, Grayscale’s parent firm, sounded euphoric about the development.

As per the official announcement, the GDLC fund is a basket of various crypto assets, with Bitcoin (BTC) being the dominant one (67.49%). At 25.35%, Ether (ETH) follows next, along with Cardano (ADA) at 4.30%, Bitcoin Cash (BCH) at 1.03%, Litecoin (LTC) at 0.96%, and Chainlink (LINK) at 0.87%.

Also Read: ADA ascends as Grayscale adds Cardano to institutional crypto basket

Each GDLC share represents 0.00044894 BTC, 0.00262915 ETH, 0.71030670 ADA, 0.00046134 BCH, 0.00160667 LTC, and 0.01052450 LINK. Grayscale’s official website reports the fund holding $352.5 million worth of assets. In the last 12 months, GDLC has notched a 306.95% upside with 122.60% gains since inception.

GDLC is now liable to file all its reports and financial statements/balance sheets with the SEC. Along with compliance with all other obligations falling under the purview of the Exchange Act. Also, accredited investors who purchased shares in the fund’s private placement can liquidate their holdings after six months. This is as per the provision under Rule 144 of the Securities Act of 1933, as amended (Securities Act).**

Grayscale Goes With Three More Filings

GDLC becoming an SEC reporting firm is a significant achievement for Grayscale. But the firm is not done yet. Grayscale Investments has filed for SEC registrations (on Form 10) of three more funds. 

The Grayscale Bitcoin Cash Trust, the Grayscale Ethereum Classic Trust, and the Grayscale Litecoin Trust.

Also Read: Grayscale Announces Five New Digital Currency Investment Trusts

Grayscale said that the filings are voluntary are subject to SEC review. If they get the green light, similar to GDLC, accredited investors would have an earlier liquidity opportunity. The holding period for private placement shares will undergo a reduction from 12 months to 6 months. In compliance with Rule 144 of the Securities Act.

“Grayscale aims to provide the investment community with a higher level of disclosure and reporting on top of the already stringent obligations to which our products adhere,” said Craig Salm, Vice President of Legal at Grayscale Investments. “We hold our products to a higher standard because this is what investors want and what we believe they deserve. Events such as the fund becoming our third SEC reporting company and the additional Form 10 filings signal that there is continued investor interest in gaining exposure to the growing digital currency ecosystem within existing regulatory frameworks, and that regulators continue to engage with market participants in the asset class.”

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Himadri Saha

Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.

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