The Creator of the Bitcoin Investment Trust launched its fourth Fund aimed at providing accredited investors the opportunity to enter the cryptocurrency market. Unlike previous funds, Grayscale, which focuses on bitcoin, Ethereum Classic and the zcash for the initiative called Digital Large Cap Fund, will provide investors access to five largest cryptocurrency assets.
When you run a shares of the Fund will be invested solely in a basket of crypto-currency assets, initially including bitcoin (BTC), ether (ETH), ripple (XRP), Bitcoin Cash (BCH) and litecoin (LTC). According to managing Director Michael Grayscale Sonnenshein (Michael Sonnenshein), the decision on the inclusion of new currencies was based on total asset value. He said
«This Fund will give our customers the opportunity to make a unique investment that will provide them with a yield of approximately 70% of the market through a single mechanism.»
Investors will buy shares through the mechanism of investments backed by actual bitcoin cost 16.00 US Eastern time. The cost will be based on the rate of Digital Asset Reference Rate provided by institutional trading company TradeBlock. Each digital asset will be valued after deduction of the expenses of the Fund and other obligations.
To account for changes in market capitalization are included in the Fund cryptocurrencies, their value will be revalued on a quarterly basis, thus replacing the existing asset with a new one when needed. The Fund is a passive investment instrument that is not actively managed. In addition to market capitalization, liquidity and operating requirements will also be evaluated during the listing.
In addition, the Fund will not offer a stock repurchase program at startup, that is, there is no assurance that the value of the shares approximates the actual value of the assets. The Foundation promptly offers shares to some accredited investors as described in the application of the Commission securities and exchange Commission (SEC).
Interestingly, the aggregate assets under management of Grayscale, a subsidiary of Digital Currency Group, for the last couple of months has decreased by almost $ 1 billion. In December Zilbert, founder of DCG, tweeted that the company manages $ 3 billion. In a recent statement, this amount decreased to $ 2.1 billion.
As confirmed by the work of the previous Grayscale of the Fund, shares can be traded much more expensive than the value of the underlying asset, if they are registered on any secondary market in the future. According to the official press release, Grayscale can ultimately achieve regulatory approval for the implementation of this stock repurchase program.
Sonnenschein said that the company intends to follow the path set by their first investment instrument — Bitcoin Investment trust, which operates the OTC trade under the Ticker GBTC: OTCQX.