Digital asset manager Grayscale Investments announced on Monday that its Digital Large Cap Fund has become a reporting company to the US Securities and Exchange Commission(SEC). This means the diversified crypto fund will now register its financial reports and statements with the SEC and comply with all other obligations listed under the Securities Exchange Act. The fund is Grayscale’s third product to report to the securities regulator after the Bitcoin Trust and Ethereum Trust.
On July 12, Digital large Cap became Grayscale’s first diversified cryptocurrency investment fund to register with the SEC. According to a press release issued by Grayscale, the company has applied for three additional registrations for its Bitcoin Cash Trust, Ethereum Classic Trust, and Litecoin Trust.
Following the registration, investors holding shares in the fund’s private placement will have the option to cash out early, since the holding period has been reduced from 12 months to 6 months. As of July 9, the Digital Large Cap Fund’s components consisted 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).
SEC’s approval of the Digital Large Cap Fund is a great sign for Grayscale, which has continuously strived to attract institutional investors to its regulated crypto investment offerings. The company has also hit another milestone in its efforts to move forward with its product development plans outlined in an April 2021 blog post.
Presently, the digital asset manager is focused on converting its Bitcoin Trust into an exchange-traded fund(ETF). Although, the timeline for this initiative will depend on the regulatory environment. The firm had originally applied for a Bitcoin ETF in 2016, although it eventually withdrew its application after extensive discussions with the SEC, which is yet to act on the backlog of ETF applications that are currently demanding approval.