NEW YORK, Feb. 11, 2018 /PRNewswire/ — Grayscale Investments, LLC (“Grayscale”), the sponsor of the Bitcoin Investment Trust (OTCQX: GBTC), 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 LLC (the “Fund”). The Fund intends to hold the top digital assets by market capitalization that meet Grayscale’s fund construction criteria in a market capitalization-weighted portfolio. A trusted authority on digital currency investing, Grayscale has assets under management of $1.31 billion.
“We’re excited to further expand the universe of Grayscale’s product offerings as interest in the digital currency asset class continues to grow,” said Barry Silbert, CEO of Grayscale. He continued, “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 invests in a basket of large cap digital assets that will initially include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH) and Litecoin (LTC) (the “Fund Components”). 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 Components, determined by reference to TradeBlock’s Digital Asset Reference Rate for each Fund Component at 4:00 p.m. New York time, less the Fund’s expenses and other liabilities. Grayscale believes that the shares represent a cost-effective and convenient investment relative to a direct investment in digital assets. Qualified investors should refer to the Fund’s private placement memorandum, which is available from Grayscale, for further information.
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 Fund’s 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 Components held by the Fund and the shares may trade at a substantial premium over, or discount to, the value of the Fund Components, if traded on any secondary market in the future.
The Fund is a Cayman Islands limited liability company based in the United States. The Fund is offering shares 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 on behalf of the Fund. For additional information, please contact info@grayscale.co.
As described more fully in the private placement memorandum, an investment in the Fund is highly speculative in nature. In addition, because the Fund’s shares are subject to a one-year holding period before they can be resold without restriction, investors will be required to bear the risk of investment and lack of liquidity for at least one year. Please read the private placement memorandum carefully for a discussion of these and other risks.
The Fund is not registered with the Securities and Exchange Commission and is not subject to disclosure and certain other requirements mandated by U.S. securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to purchase any securities in any jurisdiction. Offers to sell the Fund’s shares are made solely pursuant to the Fund’s private placement memorandum.
About Grayscale Investments, LLC
Founded in 2013, Grayscale Investments, LLC is a wholly-owned subsidiary of Digital Currency Group, Inc., which builds and supports bitcoin and blockchain companies by leveraging its insights, network, and access to capital. A trusted authority on digital currency investing, Grayscale Investments, LLC provides market insight and investment exposure to the developing digital currency asset class. Grayscale Investments, LLC is the sponsor of the Bitcoin Investment Trust, the Ethereum Classic Investment Trust, the Zcash Investment Trust and the Digital Large Cap Fund.
Grayscale Investments, LLC is headquartered in New York City. www.grayscale.co
Digital Large Cap Fund Photo credit: antanacoins on VisualHunt / CC BY-SA
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