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Grayscale’s diversified crypto fund has been approved by the Securities and Exchange Commission

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  • Grayscale Investments, a cryptocurrency asset management, is reaffirming its commitment to digital currency investment products
  • On behalf of its Grayscale Digital Large Cap Fund, Monday the Company has announced it has submitted Form 10 on its behalf
  • Grayscale also stated that it has filed three additional Form 10 registration statements with the Securities and Exchange Commission on behalf of other funds

Grayscale Investments, the world’s largest digital currency asset manager and manager of Grayscale Digital Large Cap Fund , announced today that the Securities and Exchange Commission’s Registration Statement on Form 10 that it filed on behalf of the Fund has become effective. The Fund is Grayscale’s first diversified digital currency investment fund to be registered with the Securities and Exchange Commission (SEC) under Section 12(g) of the Securities Exchange Act of 1934, as amended (Exchange Act).

Grayscale Investments Announcements

Grayscale also stated today that on behalf of Grayscale Bitcoin Cash Trust, Grayscale Ethereum Classic Trust, and Grayscale Litecoin Trust, it has filed three more Registration Statements on Form 10 with the SEC. Grayscale Bitcoin Trust and Grayscale Ethereum Trust are the company’s two SEC reporting products.

According to Craig Salm, Vice President of Legal at Grayscale Investments, Grayscale seeks to provide the investment community with a higher degree of disclosure and reporting on top of the existing onerous obligations to which our products adhere. We hold our products to a higher level because we feel it is what investors want and deserve. The Fund’s status as our third SEC reporting company, as well as the additional Form 10 filings, indicate that investors are still interested in gaining exposure to the growing digital currency ecosystem while remaining within existing regulatory frameworks, and that regulators are still engaging with market participants in the asset class.

Grayscale’s new ventures

Grayscale’s dedication to moving its digital currency investment products ahead through the product development pipeline stated in an April 2021 blog post about Grayscale’s strategy to introduce digital currency ETFs has been reinforced by this achievement.

In addition to complying with all other Exchange Act duties, Grayscale Digital Large Cap Fund will now submit reports and financial statements with the SEC as 10-Qs and 10-Ks, as well as current reports on Form 8-K. Furthermore, accredited investors who purchased shares in the Fund’s private placement would have access to liquidity sooner, since the statutory holding period for private placement shares will be lowered from 12 to 6 months under Rule 144 of the Securities Act of 1933, as amended (Securities Act).

The new Form 10 filings are optional and will be reviewed by the SEC. If any of the Registration Statements submitted today become effective, the related product will be designated as an SEC reporting company and its shares will be registered under Section 12(g) of the Exchange Act. Grayscale Bitcoin Trust and Grayscale Ethereum Trust were the first two digital currency investment vehicles to register with the Securities and Exchange Commission (SEC). This also coincides with the effective date of Grayscale’s Form 10 filled with the Securities and Exchange Commission on behalf of Grayscale Digital Large Cap Fund.

Accredited investors who purchased shares in the applicable product’s private placement would have an earlier liquidity opportunity if any of the Registration Statements originally filed today become effective, as the holding period for the applicable private placement shares would be reduced from 12 months to 6 months under Rule 144 of the Securities Act.

Grayscale’s basket of components

The Fund is an investment product that allows investors to use the Fund’s shares to more effectively implement strategic and tactical asset allocations that include digital assets. The Fund Components were a basket of 67.49 percent Bitcoin (BTC), 25.35 percent Ethereum (ETH), 4.30 percent Cardano (ADA), 1.03 percent Bitcoin Cash (BCH), 0.96 percent Litecoin (LTC), and 0.87 percent Chainlink (LINK) as of the end of the day on July 9, 2021, with each share representing 0.00044894 Bitcoin (BTC), 0.00262915 Ethereum (ETH), 0.71030670 Cardano (ADA) (LINK).

The new Form 10 filings are optional and will be reviewed by the SEC. If any of the Registration Statements submitted today become effective, the related product will be designated as an SEC reporting company and its shares will be registered under Section 12(g) of the Exchange Act. Grayscale Bitcoin Trust and Grayscale Ethereum Trust were the first two digital currency investment vehicles to register with the Securities and Exchange Commission (SEC). This also coincides with the effective date of Grayscale’s Form 10 filled with the Securities and Exchange Commission on behalf of Grayscale Digital Large Cap Fund.

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