The Grayscale Large Crypto Fund Is Now Registered
The largest crypto management firm in the world, Grayscale, has revealed that its large-cap digital fund is now registered with America’s Securities and Exchange Commission (SEC). It noted that it had started the registration process for Grayscale’s Digital Large-Cap (GDLC) fund last year when it filed its Form 10 registration statement.
The firm also disclosed that its Form 10 registration statement includes filing three more reporting products (litecoin, ethereum classic, and bitcoin cash trusts). It is a well-known fact that Grayscale’s Bitcoin and Ethereum Trusts are currently SEC reporting products.
The main benefit of this reporting responsibility is that licensed investors can now access 6-month liquidity instead of a 12-month one as contained in rule 144 of the Securities Act of 1933. The drawback is that they have now become more responsible in their reporting to the SEC.
Grayscale’s cryptocurrency Trusts and similar ones help investors own choice tokens (like Bitcoin, Ethereum, or both) when they own shares of these trusts. The GDLC fund allows investors access to multiple assets under one investment product.
The GDLC Adds Cardano To Its Portfolio
Cardano is among the top five cryptocurrencies in the world. Its token (ADA) price was $0.18 at the beginning of the year. But now, it trades at almost $1.36 and has a market capitalization of about $44 billion. By the end of next month, it is expected that Cardano would be smart-contract enabled.
Also, Cardano will start supporting decentralized finance (DeFi) and non-fungible token (NFT) projects once its scheduled hard fork (the Alonzo hard fork) is completed. Hence, this will strengthen Cardano and make it more attractive to projects on other blockchains. Therefore, these projects will switch to Cardano, which will increase the value of its ADA token.
Why Cardano?
GDLC is the only investment management firm that discovered the potential. Also, its proof-of-stake mechanism requires almost insignificant power. Its energy efficiency makes it better than the present configuration of bitcoin and Ethereum.
You’d recall that energy consumption and efficiency have the main topic of debate in the crypto community recently. Apart from allowing smart contract integration after the hard fork completion, Cardano also plans to allow the development of decentralized applications (Dapps). Once the smart contract integration and Dapps development become functional on Cardano, it would be at par with ethereum in terms of utility and functions.
The GDLC differs from other Grayscale investment products
The GDLC fund is different from the usual Grayscale investment funds approach (single-investment product trusts). Perhaps, the aim is to cover a more significant percentage of other cryptocurrencies, then separate anyone that becomes as big as Ethereum or Bitcoin.
However, there is still a tiny percentage of cryptos missing in the GDLC fund, and notable among them are Binance coin, Dogecoin, and stablecoins. Even though Binance coin and Dogecoin have larger market caps than litecoin and bitcoin cash, the GDLC fund probably those latter two because of their excellent histories.
Also, they might have been added because investors can invest in them via PayPal. Before adding Cardano, chainlink was the latest addition to the fund; it was included in the first quarter of this year.
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