Grayscale Digital Large Cap Fund Announces Management Fee Reduction
New York, Dec. 21, 2020– 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 be reducing its management fee. Effective January 1, 2021, the manager’s fee will be lowered from 3.0% to 2.5%.
Following a historic year for digital currencies, investors are seeking diversification not just into the asset class, but within it. In response to this growth in interest and demand, we’re taking action to deliver greater value to investors by reducing the management fee on one of our most popular products.
The Fund enables investors to gain exposure to a market-cap weighted portfolio of large-cap digital currencies, including Bitcoin (BTC), Ethereum (ETH), XRP, Bitcoin Cash (BCH) and Litecoin (LTC),* 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.** 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.
“Grayscale has been the market leader for digital currency investment products since our inception, and we’re focused on bringing our clients products that provide access, transparency, and exposure, all supported by best-in-class service providers,” said Michael Sonnenshein, Managing Director of Grayscale Investments. “It is extremely important to us that as our industry continues to mature and grow, Grayscale continues to lead in client service and offerings.”
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 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.
For more information, please visit https://grayscale.co/investors/.
*As of December 18, 2020, the Fund Components were a basket of 79.9% Bitcoin (BTC), 13.1% Ethereum (ETH), 4.7% XRP, 1.1% Bitcoin Cash (BCH), and 1.2% Litecoin (LTC) and each Share represented 0.00047282 Bitcoin (BTC), 0.00273342 Ethereum (ETH), 1.09529544 XRP, 0.00047576 Bitcoin Cash (BCH), and 0.00154497 Litecoin (LTC). The Fund will 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.
**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.
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 $15.5B in assets under management as of December 18, 2020. Through its family of 10 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 www.grayscale.co or follow us on Twitter, @Grayscale.