New York, July 10, 2020 (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 that the Fund will resume the private placement of its shares. The Fund’s private placement is offered on a periodic basis throughout the year and is currently available to accredited investors for daily subscription.
The Fund enables investors to gain exposure to the price movement of 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 4:00pm NY-time.**
Following a one-year holding period, shareholders who invest in the private placement may elect to sell their shares at prices dictated by the market under the symbol: GDLC. Because the Fund does not currently operate a redemption program, there can be no assurance that the value of the shares will approximate the value of the Fund Components held by the Fund, less the Fund’s expenses and other liabilities, and the shares may trade at a substantial premium over, or a substantial discount to, the value of the Fund Components held by the Fund, less the Fund’s expenses and other liabilities.
The Fund is a traditional investment vehicle with shares titled in the investor’s 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.
The private placement shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws, and the shares are being offered pursuant to an exemption from registration provided by Rule 506(c) of Regulation D under the Securities Act and in reliance on similar exemptions under applicable state laws. An investment in the shares of the Fund is suitable only for sophisticated, well-informed investors, and investors will be required to represent that they are accredited investors as such term is defined in Rule 501(a) of Regulation D under the Securities Act.
As a result, the shares are restricted shares and are subject to a one-year holding period in accordance with Rule 144 under the Securities Act. Because of the one-year holding period and the lack of an ongoing redemption program, shares should not be purchased by any investor who is not willing and able to bear the risk of investment and lack of liquidity for at least one year. No assurances are given that after the one-year holding period, there will be any market for the…