According to a statement released yesterday, Grayscale Investment’s digital large-cap Fund has become an SEC-reporting entity.
Greyscale will be required to submit reports and financial statements with the SEC and comply with other requirements as an SEC-reporting entity.
Grayscale Investments’ Vice President of Legal, Craig Salm, stated, “We hold our products to a higher standard because this is what investors expect and deserve.”
The Fund’s status as their third SEC reporting entity, as well as the additional Form 10 filings, show that institutional investors are interested in participating in the rapidly growing cryptocurrency ecosystem while staying within emerging regulatory frameworks.
Accredited investors who acquired shares in the Fund’s private placement will also benefit from an early liquidity opportunity, as the appropriate private placement shares’ holding period will be reduced from 12 to six months under Rule 144 of the Securities Act.
Grayscale’s Digital Large Cap fund is Grayscale’s fourth-largest product, with $352.5 million in assets under management. The big cap fund’s shares trade under the ticker GDLC on the OTCQX over-the-counter market.
Bitcoin and ether make up the majority of its assets (approximately 93 percent). Each GDLC share comprises 67.5 percent bitcoin and 25.3 percent ether. The rest consists of Cardano, introduced recently, along with Bitcoin Cash, Litecoin, and Chainlink Holdings. This is evident in its price performance over the last year, which has been quite similar to Bitcoin.
The impact and reputation of Grayscale’s funds can be tracked with the fact that Morgan Stanley acquired 28289 shares of Grayscale Bitcoin trust in June.