New York, April 06, 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.
Grayscale has adjusted the Fund’s portfolio by selling the existing Fund Components in proportion to their respective weightings and using the cash proceeds to purchase Chainlink (LINK) in accordance with the Fund’s construction criteria.
This announcement follows the recent launch of Grayscale® Chainlink Trust, a single-asset investment product offering investors exposure to the price movement of the LINK token.
Chainlink is a decentralized data routing protocol that is built on Ethereum. Through a wide network of nodes, Chainlink facilitates the transfer of data from off-chain sources to on-chain applications, in what is commonly referred to as an oracle service. The LINK token is the native token of Chainlink and is used to incentivize Chainlink node operators to provide oracle services.
For investors who wish to learn more about Chainlink, Grayscale also recently published an introduction to the digital currency, available here.
As of the end of the day on April 2, 2021, the Fund Components were a basket of 79.8% Bitcoin (BTC), 17.5% Ethereum (ETH), 0.80% Bitcoin Cash (BCH), 1.00% Litecoin and 0.90% Chainlink (LINK) and each Share represented 0.00046619 Bitcoin (BTC), 0.00287637 Ethereum (ETH), 0.00046869 Bitcoin Cash (BCH), 0.00166308 Litecoin and 0.00973831 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 have instead traded at a substantial premium over such value.
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.
For more information, please visit: https://grayscale.co/investors/.
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®
Grayscale Investments is the world’s largest digital currency asset manager, with more than $46B in assets under management as of April 5, 2021. Through its family of 14 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 grayscale.co or follow us on Twitter, @Grayscale.