Grayscale« Digital Large Cap Fund Announces Quarterly Rebalancing of Fund
07/02/2021 | 08:50am EDT
New York, July 02, 2021 (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 the updated Fund Component weightings for the Fund in connection with its quarterly review.
In accordance with the Fund's construction criteria, Grayscale has adjusted the Fund’s portfolio by selling certain amounts of the existing Fund Components in proportion to their respective weightings and using the cash proceeds to purchase Cardano (ADA). This announcement follows the April 2021 news that Grayscale adjusted the Fund’s portfolio and purchased Chainlink (LINK).
“We are excited to welcome Cardano to our Digital Large Cap Fund’s portfolio as we work to ensure that our diversified Fund can safely hold assets that collectively comprise 70% of the entire digital asset market,” said Edward McGee, Vice President of Finance at Grayscale. “Digital currencies represent a unique opportunity for investors to diversify their portfolios, and at Grayscale, we are proud to provide our investors with access to leading digital currencies through regulated, familiar product offerings.”
Cardano is a smart contract platform created by Charles Hoskinson, a co-founder of Ethereum. Informed by academic research, Cardano aims to improve upon the scalability, security, and efficiency of Ethereum by using a novel proof-of-stake (PoS) consensus mechanism called Ouroboros. ADA is the native token of the Cardano network that allows holders to engage in peer-to-peer transactions and stake as collateral to contribute to the network’s consensus mechanism.
At the end of the day on July 1, 2021, the Fund Components were a basket of 67.47% Bitcoin (BTC), 25.39% Ethereum (ETH), 4.26% Cardano (ADA), 1.03% Bitcoin Cash (BCH), 0.99% Litecoin (LTC), and 0.86% Chainlink (LINK) and each Share represented 0.00044919 Bitcoin (BTC), 0.00263059 Ethereum (ETH), 0.71069603 Cardano (ADA), 0.0046159 Bitcoin Cash (BCH), 0.00160755 Litecoin (LTC), and 0.01053027 Chainlink (LINK). The Fund does 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.
About Grayscale® Digital Large Cap Fund Grayscale Digital Large Cap 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 4:00 p.m. NY-time.* Investors can obtain real time visibility into the daily performance and composition of the Fund through the TradeBlock Grayscale Digital Large Cap Index (DLCX): https://tradeblock.com/markets/dlcx.
The Fund's investment objective is for its Shares 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 instead have traded at both premiums and discounts to such value, with variations that have at time been substantial.
The Fund is an investment vehicle with Shares titled in the investors 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.
Grayscale is issuing this release in accordance with the disclosure obligations of OTCQX®. The Fund’s Annual Report and other disclosures, published to satisfy the Alternative Reporting Standard disclosure guidelines for OTCQX, are available at https://www.otcmarkets.com/stock/GDLC/disclosure.
*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. Additional information about the Fund’s Construction Criteria can be found in the annual report available at https://backend.otcmarkets.com/otcapi/company/financial-report/258607/content.
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® Founded in 2013, Grayscale Investments is the world’s largest digital currency asset manager, with more than $30.4B in assets under management as of July 1, 2021. Through its family of 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. Grayscale products are distributed by Genesis Global Trading, Inc. (Member FINRA/SIPC, MSRB Registered). For more information, please visit grayscale.com and follow @Grayscale.