Grayscale Investments just received FINRA approval to launch an exchange-listed security

Grayscale Investments are set to launch a new product after they recieved  the green light  from the U.S. Financial Industry Regulatory Authority (FINRA) to launch an exchange-listed security backed by a basket of digital assets.

The fund  said it expected the Grayscale Digital Large Cap Fund (DLC) to trade on the New York-based OTCQX market. It is said to be  part of the OTC Group which specialises in listing over-the-counter products and will trade under the symbol GDLCF.

It will not be traded straight away as the firm have to wait until the fund receives DTC eligibility.  DTC is the world’s largest securities depository and the vetting process requires  that the securities must be issued “in a transaction registered with the Securities Exchange Commission (SEC)”.

So what now?. The fund either needs SEC approval or has to prove it is exempt from the regulation.

The fund has offered a private placement to accredited traders and investors since February 2018. At the end of September, there were said to be 3,194,900 DLC shares outstanding. These shares were created through the private placement and became eligible to sell into the secondary public market after a one-year holding period.

DLC fund construction is as follows: 80.3% bitcoin, 9.9% ether, 5.8% XRP, 2.2% bitcoin cash and 1.8% litecoin.