Grayscale Digital Large Cap Fund (GDLC) becomes SEC-reporting company

Grayscale also announce a partnership with BNY Mellon to prepare for expected Bitcoin ETF in October

Grayscale has announced that its registration with the Securities and Exchange Commission (SEC) on behalf of the its GDLC Fund has become effective.

The fund is Grayscale’s first diversified digital asset investment product to become an SEC-reporting company. The fund will now file its reports and financial statements with the regulatory authority.

Grayscale also announced today that it has filed three additional registration statements with the SEC on behalf of Grayscale Bitcoin Cash Trust ($BCHG), Grayscale Ethereum Classic Trust ($ETCG) and Grayscale Litecoin Trust ( $LTCN) in the hope of registering these as SEC reporting funds.

Grayscale already has two existing funds that report to the SEC – the Grayscale Bitcoin Trust and Grayscale Ethereum Trust. 

“Grayscale aims to provide the investment community with a higher level of disclosure and reporting on top of the already stringent obligations to which our products adhere,” said Craig Salm, Vice President of Legal at Grayscale Investments. 

“We hold our products to a higher standard because this is what investors want and what we believe they deserve.

“Events such as the Fund becoming our third SEC reporting company, and the additional Form 10 filings, signal that there is continued investor interest in gaining exposure to the growing digital currency ecosystem within existing regulatory frameworks, and that regulators continue to engage with market participants in the asset class.”

Weighted allocations

The GDLC is an investment product that provides investors with exposure to weighted allocations of diversified assets by using the Fund’s shares. As of July 9 2021, the Fund Components were a basket of 67.49% Bitcoin (BTC), 25.35% Ethereum (ETH), 4.30% Cardano (ADA), 1.03% Bitcoin Cash (BCH), 0.96% Litecoin (LTC), and 0.87% Chainlink (LINK).

The fund is rebalanced quarterly, with Cardano being added at the beginning of Q3. The fund’s portfolio is adjusted by selling certain amounts of existing Fund components and using the cash proceeds to purchase new assets. Grayscale is also exploring up to thirteen new products to add to its existing portfolio, with leading assets such as Polygon and Solana being considered.

Grayscale Investments further announced today that it has selected BNY Mellon as an asset servicing provider for Grayscale Bitcoin Trust (GBTC), the flagship product of Grayscale Investments LLC (Grayscale). Through this agreement, BNY Mellon will provide Grayscale Bitcoin Trust with fund accounting and administration effective October 1 2021. 

Additionally, it is anticipated that BNY Mellon will provide transfer agency and ETF Services for the Grayscale Bitcoin Trust upon its conversion to an ETF.

The successful filing alongside this new development marks the next step in Grayscale’s progression towards a regulated ETF product within the United States.

Grayscale outlined its intention in April with a Strategic Roadmap in which they proclaimed “we are 100% committed to converting GBTC into an ETF” alongside details on their upcoming plans with the Bitcoin Fund.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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