Altcoin News: Grayscale Grants Permission to Publicly List Large Digital Assets Fund

October 15, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The digital asset management company Grayscale Investments has received permission from the Financial Services Industry Regulatory Authority (FINRA) to publicly list securities, the value of which will be determined by a basket of large cryptocurrencies writes The Block.

Securities of the Grayscale Digital Large Cap (DLC) will be traded under the GDLCF on the OTC market. Grayscale claims to be the first fund of its kind available to investors in the United States. Fund investors are given the opportunity to work with prices of large digital currencies without the need to directly buy and store them.

Currently, the fund is not registered with the US Securities and Exchange Commission (SEC), so its organizers are not required to disclose additional information in accordance with securities laws.

The predominant part of the fund is Bitcoin — 80%. It is followed by Ethereum with 10%, and the remaining share falls on XRP, Bitcoin Cash and Litecoin.

Grayscale promises to provide investors with access to the fund in the near future. DLC securities will be available for free sale through investment accounts in the same way as trading in other unregistered shares. Grayscale has conducted a private placement of DLC for accredited investors since February 2018. According to the Law on Securities, shares acquired in this way in the DLC are available for sale one year after the transfer to the investor.

Earlier, a representative of Grayscale said that the lack of institutional investors in the cryptocurrency market is a “myth”.

Author: Marko Vidrih