GBTC Grayscale Bitcoin Trust ETF

Grayscale Investments®, an asset management firm with expertise in crypto investing offering more than 25 crypto investment products, today announced that NYSE Arca, Inc.’s (“NYSE Arca”) Form 19b-4 proposing to list and trade shares of Grayscale Digital Large Cap Fund (OTCQX: GDLC) as an Exchange-Traded Product (ETP) has been published in the Federal Register (link), formally initiating the review process which can take up to 240 days. The proposed rule change, if adopted, would represent the first national securities exchange ruleset permitting the listing and trading of shares of multi-crypto asset ETPs: NYSE Arca Rule 8.800-E (Commodity- and/or Digital Asset-Based Investment Interests).

As part of the Form19b-4 filing, NYSE Arca’s proposed rule change aims to revise how the exchange defines ETPs that hold commodities and digital assets beyond Bitcoin and Ether.

“Grayscale is committed to pioneering the next generation of digital asset investing, and client focus is foundational to our firm's evolution,” said Peter Mintzberg, Grayscale’s CEO. “As investors seek to maximize risk-adjusted returns and build financial portfolios that can adapt to market shifts, they are increasingly allocating to digital assets. At Grayscale, we aspire to proactively meet our clients' needs and be the go-to crypto investing partner for decades to come.”

As of November 1, 2024, GDLC currently holds assets under management of more than $530M, and includes the following large-cap digital assets from the CoinDesk Large Cap Select Index (DLCS) that are rebalanced quarterly*:

• Bitcoin, 76.53%
• Ether, 16.92%
• Solana, 4.36%
• XRP, 1.63%
• Avalanche, 0.56%

“Grayscale Digital Large Cap Fund is currently trading on OTC Markets under ticker: GDLC, and continues to meet growing investor demand by providing diversified exposure to crypto through a portfolio of market-leading digital assets,” said David LaValle, Grayscale’s Global Head of ETFs. “Grayscale and NYSE Arca have taken a thoughtful approach toward developing a proposed ruleset to permit the listing and trading of shares of multi-crypto asset ETPs within the SEC’s existing standard, and we look forward to engaging constructively with regulators, as we seek to bring digital assets further into the U.S. regulatory perimeter and deliver for our clients.”

Under the proposal, funds invested in a diversified basket index must invest at least 90% in commodities with an established surveillance or futures market, like Bitcoin and Ether, while up to 10% could be allocated elsewhere. If approved, this rule would directly benefit GDLC, which tracks the CoinDesk Large Cap Select Index (DLCS) and invests in a diversified basket of large-cap digital assets that is rebalanced quarterly.

Grayscale is firmly committed to building future-forward regulated investment vehicles that are designed to help investors build stronger diversified portfolios. GDLC first launched as a private placement in February 2018, began publicly trading on OTC Markets under ticker: GDLC in November 2019, and became an SEC reporting entity in July 2022.

Grayscale has several private placement products currently open for investment by eligible accredited investors, including diversified funds that track thematic indices and are rebalanced quarterly, such as Grayscale Decentralized AI Fund, as well as single-asset trusts that provide clients with exposure to a singular digital asset, including Grayscale Avalanche Trust, Grayscale Aave Trust, Grayscale Bittensor Trust, Grayscale MakerDAO Trust, Grayscale NEAR Trust, Grayscale Stacks Trust, Grayscale Sui Trust and Grayscale XRP Trust.

For updates and more information about Grayscale’s products, please visit https://www.grayscale.com/

*Holdings as of 11/1/2024 and are subject to change

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.

Grayscale intends to attempt to have shares of new products quoted on a secondary market. However, there is no guarantee that we will be successful. Although the shares of certain products have been approved for trading on a secondary market, investors in the new products should not assume that the shares will ever obtain such an approval due to a variety of factors, including questions regulators, such as the SEC, FINRA, or other regulatory bodies may have regarding such products. As a result, shareholders of such products should be prepared to bear the risk of investment in the shares indefinitely. To date, certain products have not met their investment objective and the shares of such products quoted on OTC Markets have not reflected the value of the digital assets held by such products, less such products’ expenses and other liabilities, but have instead traded at a premium over such value, which at times has been substantial. There have also been instances where the shares of certain products have traded at a discount.

Private placement securities are speculative, illiquid, and entail a high level of risk, including the risk that an investor could lose their entire investment.

Smart contracts are a new technology and ongoing development may magnify initial problems, cause volatility on the networks that use smart contracts and reduce interest in them, which could have an adverse impact on the value of MKR.

The Artificial Intelligence protocols underlying the Grayscale Decentralized AI Fund components were only recently conceived and the technologies underlying the protocols may not function as intended, which could have an adverse impact on the value of the Fund Components and an investment in the shares.

The Avalanche protocol was only conceived in 2018 and the Avalanche protocol or its subnet mechanisms may not function as intended, which could have an adverse impact on the value of AVAX and an investment in the shares.

The Bittensor protocol was only conceived in 2017 and its Yuma Consensus and Proof-of-Authority consensus mechanisms may not function as intended, which could have an adverse impact on the value of TAO and an investment in the shares.

The MakerDao protocol was only conceived in 2015 and the MakerDao protocol, Dai, or CDPs may not function as intended, which could have an adverse impact on the value of MKR and an investment in the shares.

The Stacks protocol was only conceived in 2017 and its “proof-of transfer” consensus mechanisms may not function as intended, which could have an adverse impact on the value of STX and an investment in the Shares. The Stacks Network only launched in 2021 and cross-blockchain scaling solutions are a new technology that could fail to attract users, which could have an adverse impact on the value of STX and an investment in the shares.

The Sui protocol and Near protocol were only conceived in 2017 and such protocols or their Nightshade and Doomslug consensus mechanisms, respectively, may not function as intended, which could have an adverse impact on the value of SUI and NEAR and an investment in the shares.

The Ripple protocol was only launched in 2012 and the Ripple Network, the Ripple Ledger, or the Trusted Nodes Lists may not function as intended, which could have an adverse impact on the value of XRP and an investment in the shares.

About Grayscale Investments®Grayscale enables investors to access the digital economy through a family of future-forward investment products. Founded in 2013, Grayscale has a decade-long track record and deep expertise as an asset management firm focused on crypto investing. Investors, advisors, and allocators turn to Grayscale for single asset, diversified, and thematic exposure. Grayscale products are distributed by Grayscale Securities, LLC (Member FINRA/SIPC).

Media ContactJennifer Rosenthalpress@grayscale.com

Client Contact866-775-0313info@grayscale.com