Grayscale Investments, the sponsor of the Bitcoin Investment Trust, the Ethereum Classic Investment Trust, and the Zcash Investment Trust, announced today the launch of a new investment vehicle, the Grayscale Digital Large Cap Fund. The new fund targets to hold the top digital assets by market capitalization that meet Grayscale’s fund construction criteria in a market capitalization-weighted portfolio. A known administrator of blockchain asset investment trusts, Grayscale has assets under management of $1.31 billion.
Initially, the fund will invest in a basket of large-cap digital assets including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), and Litecoin (LTC).
Grayscale CEO Barry Silbert said:
“We’re excited to further expand the universe of Grayscale’s product offerings as interest in the digital currency asset class continues to grow. As a trusted and experienced manager, Grayscale is committed to creating investment structures that are familiar to qualified investors and provide secure access to this emerging asset class.”
The fund may also hold cash and assets arising as a result of a fork, airdrop or similar occurrence from time to time. The investment objective of the fund is for the shares to reflect the value of the fund’s comprised assets determined by reference to TradeBlock’s Digital Asset Reference Rate at 4:00 p.m. New York, minus expenses, and other liabilities.
Through a rules-based portfolio construction process, the fund targets 70% coverage of the digital asset market. The fund will be rebalanced on a quarterly basis to remove existing digital assets or include new digital assets in the portfolio in accordance with certain criteria established by Grayscale.
The fund does not currently operate a redemption program. As a result, there can be no assurance that the value of the shares will approximate the value of the fund’s assets held and the shares may trade at a substantial premium over or discount to, the value of the fund’s individual components if traded on any secondary market in the future.
The Grayscale Digital Large Cap Fund is a Cayman Island limited liability company based in the United States. Shares are offered on an ongoing basis only to certain “accredited investors” within the meaning of Rule 501(a) of Regulation D of the Securities Act of 1933, as amended, pursuant to an exemption from registration provided by Rule 506(c) of Regulation D. The shares are only available for purchase through certain authorized participants engaged by Grayscale.
