Grayscale launches mainstream cryptocurrency

nBuzz comments: Digital Currency Group subsidiary Grayscale is a cryptocurrency investment fund, recently announced the launch of a fourth fund, and will choose the top five market capitalization of cryptocurrency targets. The aim is to expand the larger cryptocurrency market for clients, which will be offered for sale by qualified investors approved by the SFC. The redemption plan for the fund’s price guarantee has not been approved yet.n
nTranslation: Annie_Xun
The founder of the Bitcoin Investment Trust will launch a fourth fund to provide qualified investors with an encrypted currency exploration channel.n
Unlike previous Grayscale Bitcoin, Ethereum Classic and Zero funds, the fund called Digital Large Cap Fund aims to provide investors with the top five cryptocurrency services on the market capitalization.n
The fund will be established after the shares will be used only to invest in encrypted currency assets, including the first batch of Bitcoin, Ethereum, Ruibo currency, bitcoin cash and Litecoin.n
Adding new currency to avoid the cryptocurrencies already provided by Grayscale is a consideration of the total value of the assets.n
Michael Sonnenshein, executive director of Grayscale, said:n
n”Investors are looking for greater market access to digital currency asset classes.”n
nn”This gives them the opportunity to participate in similar investments that will reach them in about 70% of the market.”n
nInvestors can buy the shares of this private equity instrument and price it according to the actual cryptocurrency. Pricing is based on the Digital Asset Reference Rate provided by TradeBlock, an institutional trading technology company.n
Pricing per digital asset reduces the cost and responsibility of the fund.n
In response to changes in the market value of cryptocurrencies, adjustments are made quarterly, possibly replacing existing assets with new assets. The fund is a passive investment vehicle that does not require proactive management.n
In addition to market capitalization, the availability of liquidity, operational requirements and hosting solutions will also be taken into account.n
In addition, the release of the fund will not provide redemption plans, which means that the stock price can not be guaranteed close to the actual value of the assets held by the Fund. The fund will continue to issue shares to eligible investors regulated by the SEC.n
Interestingly, Grayscale’s total managed assets at Digital Currency Group (DCG) subsidiary shrunk by nearly a billion dollars in previous months. Last December DCG founder Silbert posted tweets, with a company that manages assets of $ 3 billion and has now dropped to $ 2.1 billion.n
Judging from past Grayscale funds, these shares may have higher premiums on the underlying assets if they are traded in the secondary market in the future.n
Grayscale official press release shows that the company may obtain regulatory clearance, release redemption plan.n
Sonnenshein said the company plans to follow the direction of the first investment vehicle, the Bitcoin Investment trust (ticker symbol GBTC: OTCQX).n
n”We plan to create public pricing in about a year.”n

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