Grayscale Investments Receives FINRA Regulatory Approval

Grayscale Investments has received regulatory approval to publicly quote shares of its diversified crypto fund.

Even though a cryptocurrency exchange-traded fund (ETF) still has to assemble regulatory approval, Grayscale Investments manage to get a green light from FINRA in order to list, what it calls – the first publicly-traded digital currency index fund.

After they’ve got Financial Industry Regulatory Authority’s approval, the so-called Digital Large Cap Fund (DLC) will be listed on over-the-counter markets and trade under the initials GDLCF.

This is company’s fourth publicly-quoted investment product which is now traded together with the rest trusts:  Bitcoin Trust (OTCQX: GBTC), Ethereum Trust (OTCQX: ETHE), and Ethereum Classic Trust (OTCQX: ETCG).

As Grayscale has ten investment products in its portfolio, the question is when they will all be listed. From the company they’ve said that they intend to list all ten but that they are already open to eventual investors. As they said from the company “the new product is available to all investors with access to U.S. securities.”

They added that the Bitcoin trust is one of the “most liquid securities on OTCQX market daily,”

Grayscale managing director Michael Sonnenshein told to media:

“To our knowledge, this is the first diversified digital currency offering going on the U.S. public market.”

He added on to explain that the main focus for DLC is enabling its investors a wider exposure to cryptocurrencies with just one vehicle. Sonnenshein also discovered that the fund has seen a 74.8 percent return, year-to-date.

As per his words:

“The fund targets upwards of 70 percent of the digital currency market. As of Sept. 30, 2019, that was 80.3 percent Bitcoin, 9.9 percent Ethereum, 5.8 percent XRP, 2.2 percent Bitcoin Cash and 1.8 percent Litecoin. To account for changes in cryptocurrency market caps, the fund components are rebalanced on a quarterly basis, potentially removing existing digital assets and adding new assets. The fund is a passive investment vehicle that is not actively managed.”

DLC Eligibility Happening Soon

The main point is that once shares are DLC eligible, which should, as they said from the company, happen soon, investors could freely-trade DLC shares through their investment accounts the same they would do with other securities that are (still) not registered.

Based in New York, Grayscale Investments, LLC is the biggest global digital currency asset manager. The company has a proven track record and experienced no competition whatsoever. As per their official announcement they are aiming to give their investors all instruments necessary in order to make informed investment decisions in a rapidly growing asset class. As part of Digital Currency Group, Grayscale acquires the world’s biggest network of industry intelligence in order to build better investment products.

In other news, when China-US trade war started, the company published a report where it requested fund managers to include Bitcoin to their portfolio as weighing tool against the escalating US-China trade conflicts. Terming the cryptocurrency as “an exciting financial technology and investment opportunity,” Grayscale revealed that it has the capacity to act as a hedge against the delaying economic tension.