Grayscale Digital Large Cap Fund Announces Resumption of Private Placement
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New York, Aug. 31, 2020 (GLOBE NEWSWIRE) -- Grayscale Investments, the world’s largest digital currency asset manager and manager of Grayscale® Digital Large Cap Fund (OTCQX: GDLC) (the Fund), today announced that the Fund will resume the private placement of its shares. The Fund’s private placement is offered on a periodic basis throughout the year and is currently available to accredited investors for daily subscription.*
The Fund enables investors to gain exposure to a market-cap weighted portfolio of large-cap digital currencies through a singular investment vehicle without the challenges of buying, storing, and safekeeping digital currencies directly.** Through a rules-based portfolio construction methodology, the Fund targets coverage of the upper 70% of the digital currency market and is re-evaluated each quarter; however, the weightings of each Fund Component change daily and are published around 4:00pm NY-time.***
The Fund’s investment objective is for its shares (based on Fund Components per share) to reflect the value of Fund Components held by the Fund, less its expenses and other liabilities. To date, the Fund has not met its investment objective and the shares quoted on OTCQX have not reflected the value of Fund Components held by the Fund less, the Fund’s expenses and other liabilities, but have instead traded at a substantial premium over such value.
Following a one-year holding period, shareholders who invest in the private placement may elect to sell their shares at prices dictated by the market under the symbol: GDLC.
The Fund is an investment vehicle with shares titled in the investor’s name, providing a familiar structure for financial and tax advisors and easy transferability to beneficiaries under estate laws. Additionally, shares are eligible to be held in certain IRA, Roth IRA, and other brokerage and investor accounts.
The private placement shares have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and the shares are being offered pursuant to an exemption from registration provided by Rule 506(c) of Regulation D under the Securities Act and in reliance on similar exemptions under applicable state laws. An investment in the shares of the Fund is suitable only for sophisticated, well-informed investors, and investors will be required to represent that they are accredited investors as such term is defined in Rule 501(a) of Regulation D under the Securities Act.
As a result, the shares are restricted shares and are subject to a one-year holding period in accordance with Rule 144 under the Securities Act. Because of the one-year holding period and the lack of an ongoing redemption program, shares should not be purchased by any investor who is not willing and able to bear the risk of investment and lack of liquidity for at least one year. No assurances are given that after the one-year holding period, there will be any market for the resale of shares, or, if there is such a market, as to the price at which such shares may be sold into such a market. Qualified investors should refer to the Fund’s private placement memorandum, which is available from Grayscale at [email protected], for a discussion of these and other risks.
Grayscale's investment products are available to institutional and accredited investors through their respective periodic and ongoing private placements. In addition to the Fund, Grayscale’s single-asset investment products provide exposure to Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), Stellar Lumens (XLM), XRP, and Zcash (ZEC). All 10 of its products are also currently available for daily subscription by accredited investors.
For more information, please visit: https://grayscale.co/investors/.
For real time visibility into the daily performance and composition of the Fund, please refer to the TradeBlock Grayscale Digital Large Cap Index (DLCX): https://tradeblock.com/markets/dlcx.
*The Fund offers a private placement to accredited investors. The Fund does not currently operate a redemption program.
**As of August 28, 2020, the Fund Components were a basket of 77.4% Bitcoin (BTC), 15.3% Ethereum (ETH), 4.2% XRP, 1.8% Bitcoin Cash (BCH), and 1.3% Litecoin (LTC) and each share represented 0.00047719 Bitcoin (BTC), 0.00275870 Ethereum (ETH), 1.10542512 XRP, 0.00048016 Bitcoin Cash (BCH), and 0.00155926 Litecoin (LTC). The Fund will not generate any income and regularly distributes Fund Components to pay for its ongoing expenses. Therefore, the amount of Fund Components represented by each share gradually decreases over time.
***The composition of the Fund is evaluated on a quarterly basis to remove existing Fund Components or to include new Fund Components in its portfolio, in accordance with the Fund's construction criteria established by Grayscale.
This press release is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
About Grayscale Investments®
Grayscale Investments is the world’s largest digital currency asset manager, with more than $5.9B in assets under management as of August 28, 2020. Through its family of 10 investment products, Grayscale provides access and exposure to the digital currency asset class in the form of a security without the challenges of buying, storing, and safekeeping digital currencies directly. With a proven track record and unrivaled experience, Grayscale’s products operate within existing regulatory frameworks, creating secure and compliant exposure for investors. For more information, please visit www.grayscale.co and follow @Grayscale.
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