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Grayscale Commences Diversified Large Cap Fund Trading

In February 2018, Grayscale Investments, the sponsor of the Bitcoin Trust (OTCQX: GBTC) announced the Grayscale Digital Large Cap Fund, an investment vehicle that captures a basket of the top digital assets within the cryptoconomy. A year later on November 22, the firm revealed the diversified crypto investment product is now available to the public as trading commences with publicly-quoted shares under the symbol: GDLCF.

Also Read: Bakkt’s Bitcoin Futures Shatters Records Amid Spot Market Turmoil

Grayscale Reveals Diversified Crypto Investment Product Available for Public Trading

Last year, Grayscale Investments announced the launch of the diversified GDLCF and four single-asset cryptocurrency trusts for XRP, BCH, LTC, and ETH. Grayscale is well known for launching the first publicly traded BTC investment vehicle (OTC:GBTC) in the U.S. in 2013. Now according to a recent blog post, Grayscale says that GDLCF will be available to trade using over-the-counter (OTC) platform OTCQX Best Market. “GDLCF is the first publicly traded security in the U.S. deriving value from a diverse selection of digital currencies,” Grayscale said on Friday. This will give investors the ability to purchase and sell GDLCF using their investments accounts similarly to traditional unregistered securities. “You can soon gain exposure to a basket of large-cap digital currencies without the challenges of buying, storing, and safekeeping digital currencies directly,” the firm stressed. Grayscale’s Director of Investments and Research, Matthew Beck, emphasized during the announcement that “digital assets represent a new and important alternative source of return for investors.”

“[Cryptocurrencies’] unique market opportunities, use cases, and risk exposures can also enhance diversification,” Beck further suggested. “A well-constructed, diversified investment product like Grayscale Digital Large Cap Fund is an important tool for investors seeking to build more balanced portfolios with higher risk-adjusted returns.”

Grayscale OTC Platform Commences Diversified Large Cap Fund Trading

Grayscale Digital Large Cap Fund Receives FINRA Approval for Public Quotation

The GDLCF launch on OTCQX Best Market follows Grayscale registering GBTC using a Form 10 Registration Statement with the U.S. Securities and Exchange Commission (SEC). The filing would designate the GBTC trust as an SEC-approved reporting company and register its shares. If approved by the SEC, then Grayscale’s Bitcoin Trust could be the first digital currency vehicle to be greenlighted by the SEC with a legal reporting status. The latest Grayscale blog post also noted that GDLCF received FINRA approval for public quotation alongside DTC eligibility. DTC issuance grants can take up to four weeks and it’s possible Grayscale’s GDLCF will be able to be deposited through DTC, the largest securities depository in the world.

Grayscale OTC Platform Commences Diversified Large Cap Fund Trading

Grayscale highlights that as of October 31, 2019, the components of the large-cap fund consist of a basket of 80.6% BTC, 9.2% ETH, 6% XRP, 2.5% BCH, and 1.7% LTC. “[GDLCF is an] open-ended fund that provides market-cap-weighted exposure to the upper 70% of the digital currency asset class,” Grayscale explains. The basket fund will be the company’s fourth publicly quoted investment product following GBTC, the Ethereum Trust (OTCQX: ETHE), and the Ethereum Classic Trust (OTCQX: ETCG). Investors will still have to wait for the public quotation approval for the Bitcoin Cash Investment Trust, Litecoin Investment Trust, and XRP Investment Trust. “A well constructed, diversified investment product like Grayscale Digital Large Cap Fund is an important tool for investors seeking to build more balanced portfolios with higher risk-adjusted returns,” Grayscale’s Beck concluded on Friday.

What do you think about Grayscale’s Digital Large Cap Fund (GDLCF)? Let us know what you think in the comments below.

Image credits: Shutterstock, Grayscale Investments, and Pixabay.

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Jamie Redman

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for about the disruptive protocols emerging today.

Jamie Redman , 2019-11-24 02:21:56 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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