Frequently Asked Questions

Bitcoin Investment Trust™ (BIT)
What is Bitcoin Investment Trust™?
×

Bitcoin Investment Trust™ is a privately offered trust available exclusively to accredited investors. Bitcoin Investment Trust’s investment objective is for the value of its shares to reflect the price performance of bitcoin, less fees and expenses. Modeled on the popular SPDR Gold ETF, Bitcoin Investment Trust was created for investors seeking exposure to bitcoin through a traditional investment vehicle. Bitcoin Investment Trust is publicly quoted on OTCQX®, the top tier operated by OTC Markets, under the ticker: GBTC.

Bitcoin Investment Trust is not registered with the Securities and Exchange Commission and is not subject to disclosure and certain other requirements mandated by U.S. securities laws. Investors considering an investment in Bitcoin Investment Trust should carefully read Bitcoin Investment Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Bitcoin Investment Trust’s Private Placement Memorandum, including the Risk Factors beginning on page 37.

Why should I own shares of Bitcoin Investment Trust™ over purchasing outright bitcoin?
×

Ease and Peace of Mind

Often, individuals and institutions seeking to directly purchase or sell bitcoin must themselves transact via unfamiliar exchanges or intermediaries that in some cases may be unregulated and insecure. This often requires investors to transmit funds to jurisdictions where they might not be comfortable. In addition, storing bitcoin on one’s own can add additional headaches, as the private keys (the bitcoin equivalent of passwords) which ensure access to an investor’s bitcoin can be susceptible to loss or theft. This potentially exposes one’s bitcoin position to partial or total loss, often with limited or no recourse to regain access to the bitcoin.

In contrast, by investing in Bitcoin Investment Trust shares, investors avoid the challenges of purchasing, storing and transferring bitcoin on their own and instead, pass these tasks to Grayscale and Bitcoin Investment Trust’s service providers, while maintaining their exposure to the price performance of bitcoin. Bitcoin Investment Trust’s assets are safeguarded by a robust security system that uses industry-leading security standards. The system’s underlying protocols are designed by experienced security, financial, legal and technology professionals, and are overseen by a financial operations principal. Bitcoin Investment Trust’s financial statements are audited annually by Friedman LLP.

Cost Effective Order Fulfillment

Purchasing large orders of bitcoin can be challenging. Few digital asset exchanges and order books can reliably fill large orders without significant price slippage. Depending on the timing and size of the transaction, a trade on a given exchange could move the market materially. Bitcoin Investment Trust’s authorized participant executes large purchase and sale orders through exchanges and over-the-counter transactions to create shares for investors at a blended daily average price based on the TradeBlock XBX Index.

Titled, Transferable, and IRA Eligible

Shares of Bitcoin Investment Trust are titled securities, which are similar to other non-SEC registered common stocks and bonds that investors may own. Titled securities are familiar to financial and tax advisors, and easily transferred to beneficiaries under estate laws, Bitcoin Investment Trust shares are eligible to be held in certain IRAs, 401ks, and other brokerage and investment accounts. Consult your investment and tax advisors for additional information.

What are Bitcoin Investment Trust’s fees?
×

Bitcoin Investment Trust charges an annual administration and safekeeping fee of 2.0%, which accrues daily. For further details on Bitcoin Investment Trust’s fees, please review Bitcoin Investment Trust’s Private Placement Memorandum.

What is the difference between purchasing shares directly from Bitcoin Investment Trust™ as opposed to purchasing Bitcoin Investment Trust shares trading on OTCQX®?
×

Qualified accredited investors are eligible to directly invest in Bitcoin Investment Trust and purchase shares at the daily Bitcoin Holdings per Share (non-GAAP NAV based on the TradeBlock XBX Index). Shares purchased directly from Bitcoin Investment Trust are restricted and subject to significant limitations on resale and transferability. Conversely, investors may choose to purchase eligible Bitcoin Investment Trust shares on OTCQX® under the ticker: GBTC at the applicable market price. These securities have been deemed freely tradeable under SEC Rule 144 and are not subject to restrictions on resale or transferability once purchased.

How is Bitcoin Investment Trust’s Bitcoin Holdings (non-GAAP NAV) calculated?
×

Bitcoin Investment Trust’s Bitcoin Holdings is calculated and published each business day at 4 p.m., New York time. The Bitcoin Holdings calculation is based off of TradeBlock’s XBX Index, taking into account a trailing 24-hour VWAP across the major bitcoin exchanges that comprise the index. For further details on how Bitcoin Holdings is calculated, please review Bitcoin Investment Trust’s Private Placement Memorandum.

Can I purchase Bitcoin Investment Trust™ shares in my retirement account?
×

It is possible that your IRA or retirement account provider may allow you to purchase shares in Bitcoin Investment Trust. For additional information, please inquire with the Grayscale team. Please note that Grayscale does not and will not provide any advice or recommendation regarding investment in Bitcoin Investment Trust and that you should consult your own advisers before making any decision to purchase shares in Bitcoin Investment Trust.

How are the bitcoin underlying Bitcoin Investment Trust™ shares safeguarded?
×

Bitcoin Investment Trust’s assets are stored with Xapo, Inc., as Custodian, in deep cold storage vaults.  Bitcoins stored in the Xapo Vaults reside on multisignature addresses, the private keys for which are protected by intense cryptographic, physical and process security.

What are the tax consequences of owning shares in Bitcoin Investment Trust™?
×

Bitcoin Investment Trust intends to take the position that it is a grantor trust for U.S. federal income tax purposes.  Assuming that Bitcoin Investment Trust is a grantor trust, Shareholders generally will be treated as if they directly owned their pro rata shares of the underlying assets held in Bitcoin Investment Trust. Shareholders also will be treated as if they directly received their respective pro rata shares of Bitcoin Investment Trust’s income, and directly incurred their pro rata shares of Bitcoin Investment Trust’s expenses. Most state and local tax authorities follow U.S. income tax rules in this regard. Prospective investors in Bitcoin Investment Trust should discuss the tax consequences of an investment in Bitcoin Investment Trust with their tax advisors.

What are the risks of investing in Bitcoin Investment Trust™?
×

As described more fully in Bitcoin Investment Trust’s Private Placement Memorandum, an investment in Bitcoin Investment Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Bitcoin Investment Trust, have experienced extreme volatility in recent periods and may continue to do so. In light of steep increases in the value of certain digital assets including Bitcoin over the course of 2017, multiple market observers have asserted that digital assets are currently experiencing a “bubble.” If these observers are correct, trading prices for many of the most popular digital assets, including those held by Bitcoin Investment Trust, could experience steep declines in value and Bitcoin Investment Trust’s shares could lose all or substantially all of their value. In addition, because Bitcoin Investment Trust’s shares are subject to a one-year holding period before they can be resold without restriction, investors in the shares will be required to bear the risk of lack of liquidity for at least one year. Please read Bitcoin Investment Trust’s Private Placement Memorandum carefully for a discussion of these and other risks.

What is an accredited investor?
×

Only accredited investors are eligible to invest in Bitcoin Investment Trust. An accredited investor includes:

  • Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or
  • Any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (excluding the value of the person’s primary residence and certain indebtedness secured by such person’s primary residence).

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

  • any trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring shares of Bitcoin Investment Trust, whose purchase is directed by a sophisticated person; or
  • any entity in which all of the equity owners are accredited investors.

For this purpose, a sophisticated person means a person who has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of a prospective investment.

Bitcoin Cash Investment Trust™ (BCH)
What is Bitcoin Cash Investment Trust™?
×

Bitcoin Cash Investment Trust™ is a privately offered trust available exclusively to accredited investors. Bitcoin Cash Investment Trust’s investment objective is for the value of its shares to reflect the price performance of Bitcoin Cash (“BCH”), less fees and expenses. Modeled after Grayscale’s Bitcoin Investment Trust, Bitcoin Cash Investment Trust was created for investors seeking exposure to BCH through a traditional investment vehicle.

Bitcoin Cash Investment Trust is not registered with the Securities and Exchange Commission and is not subject to disclosure and certain other requirements mandated by U.S. securities laws. Investors considering an investment in Bitcoin Cash Investment Trust should carefully read Bitcoin Cash Investment Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Bitcoin Cash Investment Trust’s Private Placement Memorandum, including the Risk Factors beginning on page 7.

Why should I own shares of Bitcoin Cash Investment Trust over purchasing BCH outright?
×

Ease and Peace of Mind

Often, individuals and institutions seeking to directly purchase or sell BCH must themselves transact via unfamiliar exchanges or intermediaries that in some cases may be unregulated and insecure.  This often requires investors to transmit funds to jurisdictions where they might not be comfortable. In addition, storing BCH on one’s own can add additional headaches, as the private keys (the BCH equivalent of passwords) which ensure access to an investor’s BCH can be susceptible to loss or theft. This potentially exposes one’s BCH position to partial or total loss, often with limited or no recourse to regain access to the BCH.

In contrast, by investing in Bitcoin Cash Investment Trust shares, investors avoid the challenges of purchasing, storing and transferring BCH on their own and instead, pass these tasks to Grayscale and Bitcoin Cash Investment Trust’s service providers, while maintaining their exposure to the price performance of BCH. Bitcoin Cash Trust’s assets are safeguarded by a robust multi-factor security system that incorporates intense physical, cryptographic and procedural elements. This is done in order to mitigate the risks associated with a single point of failure. The system’s underlying protocols are designed by experienced security, financial, legal and technology professionals.

Cost Effective Order Fulfillment

Purchasing large orders of BCH can be challenging. Few digital asset exchanges and order books can reliably fill large orders without significant price slippage. Depending on the timing and size of the transaction, a trade on a given exchange could move the market materially. Bitcoin Cash Investment Trust’s authorized participant executes large purchase and sale orders through exchanges and over-the-counter transactions to create shares for investors at a blended daily average price based on the TradeBlock BCX Index.

Titled, Transferable, and IRA Eligible

Shares of Bitcoin Cash Investment Trust are titled securities, which are similar to other non-SEC registered common stocks and bonds that investors may own. Titled securities are familiar to financial and tax advisors, and easily transferred to beneficiaries under estate laws, Bitcoin Cash Investment Trust shares are eligible to be held in certain IRAs, 401ks, and other brokerage and investment accounts. Consult your investment and tax advisors for additional information.

What are Bitcoin Cash Investment Trust’s fees?
×

Bitcoin Cash Investment Trust charges an annual administration and safekeeping fee of 2.5%, which accrues daily. For further details on Bitcoin Cash Investment Trust’s fees, please review Bitcoin Cash Investment Trust’s Private Placement Memorandum.

How is Bitcoin Cash Investment Trust’s BCH Holdings (non-GAAP NAV) calculated?
×

Bitcoin Cash Investment Trust’s BCH Holdings (non-GAAP NAV) is calculated and published each business day at 4 p.m., New York time. The BCH Holdings calculation is based off of TradeBlock’s BCX Index, taking into account a trailing 24-hour VWAP across the major BCH exchanges that comprise the index. For further details on how Bitcoin Cash Investment Trust’s BCH Holdings is calculated, please review Bitcoin Cash Investment Trust’s Private Placement Memorandum.

Can I purchase Bitcoin Cash Investment Trust shares in my retirement account?
×

It is possible that your IRA or retirement account provider may allow you to purchase shares in Bitcoin Cash Investment Trust. For additional information, please inquire with the Grayscale team. Please note that Grayscale does not and will not provide any advice or recommendation regarding investment in Bitcoin Cash Investment Trust and that you should consult your own advisers before making any decision to purchase shares in Bitcoin Cash Investment Trust.

How are the BCH underlying Bitcoin Cash Investment Trust shares safeguarded?
×

Bitcoin Cash Investment Trust’s assets are maintained with Ledger SAS, as Key Maintainer, in deep cold storage vaults. The BCH maintained with Ledger SAS reside on multi-factor digital addresses, the private keys for which are protected by intense cryptographic, physical and process security.

What are the tax consequences of owning shares in Bitcoin Cash Investment Trust?
×

Bitcoin Cash Investment Trust intends to take the position that it is a grantor trust for U.S. federal income tax purposes.  Assuming that Bitcoin Cash Investment Trust is a grantor trust, Shareholders generally will be treated as if they directly owned their pro rata shares of the underlying assets held in Bitcoin Cash Investment Trust. Shareholders also will be treated as if they directly received their respective pro rata shares of Bitcoin Cash Investment Trust’s income, and directly incurred their pro rata shares of the Bitcoin Cash Investment Trust’s expenses. Most state and local tax authorities follow U.S. income tax rules in this regard. Prospective investors in Bitcoin Cash Investment Trust should discuss the tax consequences of an investment in Bitcoin Cash Investment Trust with their tax advisors.

What are the risks of investing in Bitcoin Cash Investment Trust?
×

As described more fully in Bitcoin Cash Investment Trust’s Private Placement Memorandum, an investment in Bitcoin Cash Investment Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Bitcoin Cash Investment Trust, have experienced extreme volatility in recent periods and may continue to do so. In light of steep increases in the value of certain digital assets including BCH over the course of 2017, multiple market observers have asserted that digital assets are currently experiencing a “bubble.” If these observers are correct, trading prices for many of the most popular digital assets, including those held by Bitcoin Cash Investment Trust, could experience steep declines in value and Bitcoin Cash Investment Trust’s shares could lose all or substantially all of their value. In addition, because Bitcoin Cash Investment Trust’s shares are subject to a one-year holding period before they can be resold without restriction, investors in the shares will be required to bear the risk of lack of liquidity for at least one year. Please read Bitcoin Cash Investment Trust’s Private Placement Memorandum carefully for a discussion of these and other risks.

What is an accredited investor?
×

Only accredited investors are eligible to invest in Bitcoin Cash Investment Trust. An accredited investor includes:

  • Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or
  • Any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (excluding the value of the person’s primary residence and certain indebtedness secured by such person’s primary residence).

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

  • any trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring shares of Bitcoin Cash Investment Trust, whose purchase is directed by a sophisticated person; or
  • any entity in which all of the equity owners are accredited investors.

For this purpose, a sophisticated person means a person who has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of a prospective investment.

Ethereum Investment Trust™ (ETH)
What is Ethereum Investment Trust™?
×

Ethereum Investment Trust™ is a privately offered trust available exclusively to accredited investors. Ethereum Investment Trust’s investment objective is for the value of its shares to reflect the price performance of Ethereum (“ETH”), less fees and expenses. Modeled after Grayscale’s Bitcoin Investment Trust, Ethereum Investment Trust was created for investors seeking exposure to ETH through a traditional investment vehicle.

Ethereum Investment Trust is not registered with the Securities and Exchange Commission and is not subject to disclosure and certain other requirements mandated by U.S. securities laws. Investors considering an investment in Ethereum Investment Trust should carefully read Ethereum Investment Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Ethereum Investment Trust’s Private Placement Memorandum, including the Risk Factors beginning on page [7].

Why should I own shares of Ethereum Investment Trust™ over purchasing ETH outright?
×

Ease and Peace of Mind

Often, individuals and institutions seeking to directly purchase or sell ETH must themselves transact via unfamiliar exchanges or intermediaries that in some cases may be unregulated and insecure.  This often requires investors to transmit funds to jurisdictions where they might not be comfortable. In addition, storing ETH on one’s own can add additional headaches, as the private keys (the ETH equivalent of passwords) which ensure access to an investor’s ETH can be susceptible to loss or theft. This potentially exposes one’s ETH position to partial or total loss, often with limited or no recourse to regain access to the ETH.

In contrast, by investing in Ethereum Investment Trust shares, investors avoid the challenges of purchasing, storing and transferring ETH on their own and instead, pass these tasks to Grayscale and Ethereum Investment Trust’s service providers, while maintaining their exposure to the price performance of ETH. Ethereum Trust’s assets are safeguarded by a robust multi-factor security system that incorporates intense physical, cryptographic and procedural elements. This is done in order to mitigate the risks associated with a single point of failure. The system’s underlying protocols are designed by experienced security, financial, legal and technology professionals.

Cost Effective Order Fulfillment

Purchasing large orders of ETH can be challenging. Few digital asset exchanges and order books can reliably fill large orders without significant price slippage. Depending on the timing and size of the transaction, a trade on a given exchange could move the market materially. Ethereum Investment Trust’s authorized participant executes large purchase and sale orders through exchanges and over-the-counter transactions to create shares for investors at a blended daily average price based on the TradeBlock ETX Index.

Titled, Transferable, and IRA Eligible

Shares of Ethereum Investment Trust are titled securities, which are similar to other non-SEC registered common stocks and bonds that investors may own. Titled securities are familiar to financial and tax advisors, and easily transferred to beneficiaries under estate laws, Ethereum Investment Trust shares are eligible to be held in certain IRAs, 401ks, and other brokerage and investment accounts. Consult your investment and tax advisors for additional information.

What are Ethereum Investment Trust’s fees?
×

Ethereum Investment Trust charges an annual administration and safekeeping fee of 2.5%, which accrues daily. For further details on Ethereum Investment Trust’s fees, please review Ethereum Investment Trust’s Private Placement Memorandum.

How is Ethereum Investment Trust’s ETH Holdings (non-GAAP NAV) calculated?
×

Ethereum Investment Trust’s ETH Holdings (non-GAAP NAV) is calculated and published each business day at 4 p.m., New York time. The ETC Holdings calculation is based off of TradeBlock’s ETX Index, taking into account a trailing 24-hour VWAP across the major ETH exchanges that comprise the index. For further details on how Ethereum Investment Trust’s ETH Holdings is calculated, please review Ethereum Investment Trust’s Private Placement Memorandum.

Can I purchase Ethereum Investment Trust shares in my retirement account?
×

It is possible that your IRA or retirement account provider may allow you to purchase shares in Ethereum Investment Trust. For additional information, please inquire with the Grayscale team. Please note that Grayscale does not and will not provide any advice or recommendation regarding investment in Ethereum Investment Trust and that you should consult your own advisers before making any decision to purchase shares in Ethereum Investment Trust.

How are the ETH underlying Ethereum Investment Trust shares safeguarded?
×

Ethereum Investment Trust’s assets are maintained with Ledger SAS, as Key Maintainer, in deep cold storage vaults. The ETH maintained with Ledger SAS reside on multi-factor digital addresses, the private keys for which are protected by intense cryptographic, physical and process security.

What are the tax consequences of owning shares in Ethereum Investment Trust?
×

Ethereum Investment Trust intends to take the position that it is a grantor trust for U.S. federal income tax purposes.  Assuming that Ethereum Investment Trust is a grantor trust, Shareholders generally will be treated as if they directly owned their pro rata shares of the underlying assets held in Ethereum Investment Trust. Shareholders also will be treated as if they directly received their respective pro rata shares of Ethereum Investment Trust’s income, and directly incurred their pro rata shares of the Ethereum Investment Trust’s expenses. Most state and local tax authorities follow U.S. income tax rules in this regard. Prospective investors in Ethereum Investment Trust should discuss the tax consequences of an investment in Ethereum Investment Trust with their tax advisors.

What are the risks of investing in Ethereum Investment Trust™?
×

As described more fully in Ethereum Investment Trust’s Private Placement Memorandum, an investment in Ethereum Investment Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Ethereum Investment Trust, have experienced extreme volatility in recent periods and may continue to do so. In light of steep increases in the value of certain digital assets including ETH over the course of 2017, multiple market observers have asserted that digital assets are currently experiencing a “bubble.” If these observers are correct, trading prices for many of the most popular digital assets, including those held by Ethereum Investment Trust, could experience steep declines in value and Ethereum Investment Trust’s shares could lose all or substantially all of their value. In addition, because Ethereum Investment Trust’s shares are subject to a one-year holding period before they can be resold without restriction, investors in the shares will be required to bear the risk of lack of liquidity for at least one year. Please read Ethereum Investment Trust’s Private Placement Memorandum carefully for a discussion of these and other risks.

What is an accredited investor?
×

Only accredited investors are eligible to invest in Ethereum Investment Trust. An accredited investor includes:

  • Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or
  • Any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (excluding the value of the person’s primary residence and certain indebtedness secured by such person’s primary residence).

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

  • any trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring shares of Ethereum Classic Investment Trust, whose purchase is directed by a sophisticated person; or
  • any entity in which all of the equity owners are accredited investors.

For this purpose, a sophisticated person means a person who has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of a prospective investment.

Ethereum Classic Investment Trust™ (ETC)
What is Ethereum Classic Investment Trust™
×

Ethereum Classic Investment Trust™ is a privately offered trust available exclusively to accredited investors. Ethereum Classic Investment Trust’s investment objective is for the value of its shares to reflect the price performance of Ethereum Classic (“ETC”), less fees and expenses. Modeled after Grayscale’s Bitcoin Investment Trust, Ethereum Classic Investment Trust was created for investors seeking exposure to ETC through a traditional investment vehicle.

Ethereum Classic Investment Trust is not registered with the Securities and Exchange Commission and is not subject to disclosure and certain other requirements mandated by U.S. securities laws. Investors considering an investment in Ethereum Classic Investment Trust should carefully read Ethereum Classic Investment Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Ethereum Classic Investment Trust’s Private Placement Memorandum, including the Risk Factors beginning on page 7.

Why should I own shares of Ethereum Classic Investment Trust™ over purchasing ETC outright?
×

Ease and Peace of Mind

Often, individuals and institutions seeking to directly purchase or sell ETC must themselves transact via unfamiliar exchanges or intermediaries that in some cases may be unregulated and insecure.  This often requires investors to transmit funds to jurisdictions where they might not be comfortable. In addition, storing ETC on one’s own can add additional headaches, as the private keys (the ETC equivalent of passwords) which ensure access to an investor’s ETC can be susceptible to loss or theft. This potentially exposes one’s ETC position to partial or total loss, often with limited or no recourse to regain access to the ETC.

In contrast, by investing in Ethereum Classic Investment Trust shares, investors avoid the challenges of purchasing, storing and transferring ETC on their own and instead, pass these tasks to Grayscale and Ethereum Classic Investment Trust’s service providers, while maintaining their exposure to the price performance of ETC. Ethereum Classic Trust’s assets are safeguarded by a robust multi-factor security system that incorporates intense physical, cryptographic and procedural elements. This is done in order to mitigate the risks associated with a single point of failure. The system’s underlying protocols are designed by experienced security, financial, legal and technology professionals.

Cost Effective Order Fulfillment

Purchasing large orders of ETC can be challenging. Few digital asset exchanges and order books can reliably fill large orders without significant price slippage. Depending on the timing and size of the transaction, a trade on a given exchange could move the market materially. Ethereum Classic Investment Trust’s authorized participant executes large purchase and sale orders through exchanges and over-the-counter transactions to create shares for investors at a blended daily average price based on the TradeBlock ECX Index.

Titled, Transferable, and IRA Eligible

Shares of Ethereum Classic Investment Trust are titled securities, which are similar to other non-SEC registered common stocks and bonds that investors may own. Titled securities are familiar to financial and tax advisors, and easily transferred to beneficiaries under estate laws, Ethereum Classic Investment Trust shares are eligible to be held in certain IRAs, 401ks, and other brokerage and investment accounts. Consult your investment and tax advisors for additional information.

What are Ethereum Classic Investment Trust’s fees?
×

Ethereum Classic Investment Trust charges an annual administration and safekeeping fee of 3.0%, which accrues daily.

In order to promote growth and development of Ethereum Classic Network, Grayscale intends to direct up to one-third of the annual management fee (or an annual rate of 1% of the daily ETC Holdings of Ethereum Classic Investment Trust) towards initiatives that support development, marketing, and other community efforts for the first three years of Ethereum Classic Investment’s operations. For further details on Ethereum Classic Investment Trust’s fees, please review Ethereum Classic Investment Trust’s Private Placement Memorandum.

How is Ethereum Classic Investment Trust’s ETC Holdings (non-GAAP NAV) calculated?
×

Ethereum Classic Investment Trust’s ETC Holdings (non-GAAP NAV) is calculated and published each business day at 4 p.m., New York time. The ETC Holdings calculation is based off of TradeBlock’s ECX Index, taking into account a trailing 24-hour VWAP across the major ETC exchanges that comprise the index. For further details on how Ethereum Classic Investment Trust’s ETC Holdings is calculated, please review Ethereum Classic Investment Trust’s Private Placement Memorandum.

Can I purchase Ethereum Classic Investment Trust™ shares in my retirement account?
×

It is possible that your IRA or retirement account provider may allow you to purchase shares in Ethereum Classic Investment Trust. For additional information, please inquire with the Grayscale team. Please note that Grayscale does not and will not provide any advice or recommendation regarding investment in Ethereum Classic Investment Trust and that you should consult your own advisers before making any decision to purchase shares in Ethereum Classic Investment Trust.

How are the ETC underlying Ethereum Classic Investment Trust shares safeguarded?
×

Ethereum Classic Investment Trust’s assets are maintained with Ledger SAS, as Key Maintainer, in deep cold storage vaults. The ETC maintained with Ledger SAS reside on multi-factor digital addresses, the private keys for which are protected by intense cryptographic, physical and process security.

What are the tax consequences of owning shares in Ethereum Classic Investment Trust™?
×

Ethereum Classic Investment Trust intends to take the position that it is a grantor trust for U.S. federal income tax purposes.  Assuming that Ethereum Classic Investment Trust is a grantor trust, Shareholders generally will be treated as if they directly owned their pro rata shares of the underlying assets held in Ethereum Classic Investment Trust. Shareholders also will be treated as if they directly received their respective pro rata shares of Ethereum Classic Investment Trust’s income, and directly incurred their pro rata shares of the Ethereum Classic Investment Trust’s expenses. Most state and local tax authorities follow U.S. income tax rules in this regard. Prospective investors in Ethereum Classic Investment Trust should discuss the tax consequences of an investment in Ethereum Classic Investment Trust with their tax advisors.

What are the risks of investing in Ethereum Classic Investment Trust™?
×

As described more fully in Ethereum Classic Investment Trust’s Private Placement Memorandum, an investment in Ethereum Classic Investment Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Ethereum Classic Investment Trust, have experienced extreme volatility in recent periods and may continue to do so. In light of steep increases in the value of certain digital assets including ETC over the course of 2017, multiple market observers have asserted that digital assets are currently experiencing a “bubble.” If these observers are correct, trading prices for many of the most popular digital assets, including those held by Ethereum Classic Investment Trust, could experience steep declines in value and Ethereum Classic Investment Trust’s shares could lose all or substantially all of their value. In addition, because Ethereum Classic Investment Trust’s shares are subject to a one-year holding period before they can be resold without restriction, investors in the shares will be required to bear the risk of lack of liquidity for at least one year. Please read Ethereum Classic Investment Trust’s Private Placement Memorandum carefully for a discussion of these and other risks.

What is an accredited investor?
×

Only accredited investors are eligible to invest in Ethereum Classic Investment Trust™. An accredited investor includes:

  • Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or
  • Any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (excluding the value of the person’s primary residence and certain indebtedness secured by such person’s primary residence).

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

  • any trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring shares of Ethereum Classic Investment Trust, whose purchase is directed by a sophisticated person; or
  • any entity in which all of the equity owners are accredited investors.

For this purpose, a sophisticated person means a person who has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of a prospective investment.

Litecoin Investment Trust™ (LTC)
What is Litecoin Investment Trust™?
×

Litecoin Investment Trust™ is a privately offered trust available exclusively to accredited investors. Litecoin Investment Trust’s investment objective is for the value of its shares to reflect the price performance of Litecoin (“LTC”), less fees and expenses. Modeled after Grayscale’s Bitcoin Investment Trust, Litecoin Investment Trust was created for investors seeking exposure to LTC through a traditional investment vehicle.

Litecoin Investment Trust is not registered with the Securities and Exchange Commission and is not subject to disclosure and certain other requirements mandated by U.S. securities laws. Investors considering an investment in Litecoin Investment Trust should carefully read Litecoin Investment Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Litecoin Investment Trust’s Private Placement Memorandum, including the Risk Factors beginning on page 7.

Why should I own shares of Litecoin Investment Trust over purchasing LTC outright?
×

Ease and Peace of Mind

Often, individuals and institutions seeking to directly purchase or sell LTC must themselves transact via unfamiliar exchanges or intermediaries that in some cases may be unregulated and insecure.  This often requires investors to transmit funds to jurisdictions where they might not be comfortable. In addition, storing LTC on one’s own can add additional headaches, as the private keys (the LTC equivalent of passwords) which ensure access to an investor’s LTC can be susceptible to loss or theft. This potentially exposes one’s LTC position to partial or total loss, often with limited or no recourse to regain access to the LTC.

In contrast, by investing in Litecoin Investment Trust shares, investors avoid the challenges of purchasing, storing and transferring LTC on their own and instead, pass these tasks to Grayscale and Litecoin Investment Trust’s service providers, while maintaining their exposure to the price performance of LTC. Litecoin Trust’s assets are safeguarded by a robust multi-factor security system that incorporates intense physical, cryptographic and procedural elements. This is done in order to mitigate the risks associated with a single point of failure. The system’s underlying protocols are designed by experienced security, financial, legal and technology professionals.

Cost Effective Order Fulfillment

Purchasing large orders of LTC can be challenging. Few digital asset exchanges and order books can reliably fill large orders without significant price slippage. Depending on the timing and size of the transaction, a trade on a given exchange could move the market materially. Litecoin Investment Trust’s authorized participant executes large purchase and sale orders through exchanges and over-the-counter transactions to create shares for investors at a blended daily average price based on the TradeBlock LTX Index.

Titled, Transferable, and IRA Eligible

Shares of Litecoin Investment Trust™ are titled securities, which are similar to other non-SEC registered common stocks and bonds that investors may own. Titled securities are familiar to financial and tax advisors, and easily transferred to beneficiaries under estate laws, Litecoin Investment Trust shares are eligible to be held in certain IRAs, 401ks, and other brokerage and investment accounts. Consult your investment and tax advisors for additional information.

What are Litecoin Investment Trust’s fees?
×

Litecoin Investment Trust™ charges an annual administration and safekeeping fee of 2.5%, which accrues daily. For further details on Litecoin Investment Trust’s fees, please review Litecoin Investment Trust’s Private Placement Memorandum.

How is Litecoin Investment Trust’s LTC Holdings (non-GAAP NAV) calculated?
×

Litecoin Investment Trust’s LTC Holdings (non-GAAP NAV) is calculated and published each business day at 4 p.m., New York time. The ETC Holdings calculation is based off of TradeBlock’s LTC Index, taking into account a trailing 24-hour VWAP across the major LTC exchanges that comprise the index. For further details on how Litecoin Investment Trust’s LTC Holdings is calculated, please review Litecoin Investment Trust’s Private Placement Memorandum.

Can I purchase Litecoin Investment Trust shares in my retirement account?
×

It is possible that your IRA or retirement account provider may allow you to purchase shares in Litecoin Investment Trust. For additional information, please inquire with the Grayscale team. Please note that Grayscale does not and will not provide any advice or recommendation regarding investment in Litecoin Investment Trust and that you should consult your own advisers before making any decision to purchase shares in Litecoin Investment Trust.

How are the LTC underlying Litecoin Investment Trust shares safeguarded?
×

Litecoin Investment Trust’s assets are maintained with Ledger SAS, as Key Maintainer, in deep cold storage vaults. The LTC maintained with Ledger SAS reside on multi-factor digital addresses, the private keys for which are protected by intense cryptographic, physical and process security.

What are the tax consequences of owning shares in Litecoin Investment Trust?
×

Litecoin Investment Trust intends to take the position that it is a grantor trust for U.S. federal income tax purposes.  Assuming that Litecoin Investment Trust is a grantor trust, Shareholders generally will be treated as if they directly owned their pro rata shares of the underlying assets held in Litecoin Investment Trust. Shareholders also will be treated as if they directly received their respective pro rata shares of Litecoin Investment Trust’s income, and directly incurred their pro rata shares of the Litecoin Investment Trust’s expenses. Most state and local tax authorities follow U.S. income tax rules in this regard. Prospective investors in Litecoin Investment Trust should discuss the tax consequences of an investment in Litecoin Investment Trust with their tax advisors.

What are the risks of investing in Litecoin Investment Trust?
×

As described more fully in Litecoin Investment Trust’s Private Placement Memorandum, an investment in Litecoin Investment Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Litecoin Investment Trust, have experienced extreme volatility in recent periods and may continue to do so. In light of steep increases in the value of certain digital assets including LTC over the course of 2017, multiple market observers have asserted that digital assets are currently experiencing a “bubble.” If these observers are correct, trading prices for many of the most popular digital assets, including those held by Litecoin Investment Trust, could experience steep declines in value and Litecoin Investment Trust’s shares could lose all or substantially all of their value. In addition, because Litecoin Investment Trust’s shares are subject to a one-year holding period before they can be resold without restriction, investors in the shares will be required to bear the risk of lack of liquidity for at least one year. Please read Litecoin Investment Trust’s Private Placement Memorandum carefully for a discussion of these and other risks.

What is an accredited investor?
×

Only accredited investors are eligible to invest in Litecoin Investment Trust. An accredited investor includes:

  • Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or
  • Any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (excluding the value of the person’s primary residence and certain indebtedness secured by such person’s primary residence).

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

  • any trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring shares of Litecoin Investment Trust, whose purchase is directed by a sophisticated person; or
  • any entity in which all of the equity owners are accredited investors.

For this purpose, a sophisticated person means a person who has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of a prospective investment.

XRP Investment Trust™
What is XRP Investment Trust™?
×

XRP Investment Trust™ is a privately offered trust available exclusively to accredited investors. XRP Investment Trust’s investment objective is for the value of its shares to reflect the price performance of XRP (“XRP”), less fees and expenses. Modeled after Grayscale’s Bitcoin Investment Trust, XRP Investment Trust was created for investors seeking exposure to XRP through a traditional investment vehicle.

XRP Investment Trust is not registered with the Securities and Exchange Commission and is not subject to disclosure and certain other requirements mandated by U.S. securities laws. Investors considering an investment in XRP Investment Trust should carefully read XRP Investment Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in XRP Investment Trust’s Private Placement Memorandum, including the Risk Factors beginning on page 7.

Why should I own shares of XRP Investment Trust over purchasing XRP outright?
×

Ease and Peace of Mind

Often, individuals and institutions seeking to directly purchase or sell XRP must themselves transact via unfamiliar exchanges or intermediaries that in some cases may be unregulated and insecure.  This often requires investors to transmit funds to jurisdictions where they might not be comfortable. In addition, storing XRP on one’s own can add additional headaches, as the private keys (the XRP equivalent of passwords) which ensure access to an investor’s XRP can be susceptible to loss or theft. This potentially exposes one’s XRP position to partial or total loss, often with limited or no recourse to regain access to the XRP.

In contrast, by investing in XRP Investment Trust shares, investors avoid the challenges of purchasing, storing and transferring XRP on their own and instead, pass these tasks to Grayscale and XRP Investment Trust’s service providers, while maintaining their exposure to the price performance of XRP. XRP Trust’s assets are safeguarded by a robust multi-factor security system that incorporates intense physical, cryptographic and procedural elements. This is done in order to mitigate the risks associated with a single point of failure. The system’s underlying protocols are designed by experienced security, financial, legal and technology professionals.

Cost Effective Order Fulfillment

Purchasing large orders of XRP can be challenging. Few digital asset exchanges and order books can reliably fill large orders without significant price slippage. Depending on the timing and size of the transaction, a trade on a given exchange could move the market materially. XRP Investment Trust’s authorized participant executes large purchase and sale orders through exchanges and over-the-counter transactions to create shares for investors at a blended daily average price based on the TradeBlock XRX Index.

Titled, Transferable, and IRA Eligible

Shares of XRP Investment Trust are titled securities, which are similar to other non-SEC registered common stocks and bonds that investors may own. Titled securities are familiar to financial and tax advisors, and easily transferred to beneficiaries under estate laws, XRP Investment Trust shares are eligible to be held in certain IRAs, 401ks, and other brokerage and investment accounts. Consult your investment and tax advisors for additional information.

What are XRP Investment Trust’s fees?
×

XRP Investment Trust charges an annual administration and safekeeping fee of 2.5%, which accrues daily. For further details on XRP Investment Trust’s fees, please review XRP Investment Trust’s Private Placement Memorandum.

How is XRP Investment Trust’s XRP Holdings (non-GAAP NAV) calculated?
×

XRP Investment Trust’s XRP Holdings (non-GAAP NAV) is calculated and published each business day at 4 p.m., New York time. The XRP Holdings calculation is based off of TradeBlock’s XRX Index, taking into account a trailing 24-hour VWAP across the major XRP exchanges that comprise the index. For further details on how XRP Investment Trust’s XRP Holdings is calculated, please review XRP Investment Trust’s Private Placement Memorandum.

Can I purchase XRP Investment Trust shares in my retirement account?
×

It is possible that your IRA or retirement account provider may allow you to purchase shares in XRP Investment Trust. For additional information, please inquire with the Grayscale team. Please note that Grayscale does not and will not provide any advice or recommendation regarding investment in XRP Investment Trust and that you should consult your own advisers before making any decision to purchase shares in XRP Investment Trust.

How are the XRP underlying XRP Investment Trust shares safeguarded?
×

XRP Investment Trust’s assets are maintained with Ledger SAS, as Key Maintainer, in deep cold storage vaults. The XRP maintained with Ledger SAS reside on multi-factor digital addresses, the private keys for which are protected by intense cryptographic, physical and process security.

What are the tax consequences of owning shares in XRP Investment Trust?
×

XRP Investment Trust intends to take the position that it is a grantor trust for U.S. federal income tax purposes.  Assuming that XRP Investment Trust is a grantor trust, Shareholders generally will be treated as if they directly owned their pro rata shares of the underlying assets held in XRP Investment Trust. Shareholders also will be treated as if they directly received their respective pro rata shares of XRP Investment Trust’s income, and directly incurred their pro rata shares of the XRP Investment Trust’s expenses. Most state and local tax authorities follow U.S. income tax rules in this regard. Prospective investors in XRP Investment Trust should discuss the tax consequences of an investment in XRP Investment Trust with their tax advisors.

What are the risks of investing in XRP Investment Trust?
×

As described more fully in XRP Investment Trust’s Private Placement Memorandum, an investment in XRP Investment Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by XRP Investment Trust, have experienced extreme volatility in recent periods and may continue to do so. In light of steep increases in the value of certain digital assets including XRP over the course of 2017, multiple market observers have asserted that digital assets are currently experiencing a “bubble.” If these observers are correct, trading prices for many of the most popular digital assets, including those held by XRP Investment Trust, could experience steep declines in value and XRP Investment Trust’s shares could lose all or substantially all of their value. In addition, because XRP Investment Trust’s shares are subject to a one-year holding period before they can be resold without restriction, investors in the shares will be required to bear the risk of lack of liquidity for at least one year. Please read XRP Investment Trust’s Private Placement Memorandum carefully for a discussion of these and other risks.

What is an accredited investor?
×

Only accredited investors are eligible to invest in XRP Investment Trust. An accredited investor includes:

  • Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or
  • Any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (excluding the value of the person’s primary residence and certain indebtedness secured by such person’s primary residence).

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

  • any trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring shares of XRP Investment Trust, whose purchase is directed by a sophisticated person; or
  • any entity in which all of the equity owners are accredited investors.

For this purpose, a sophisticated person means a person who has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of a prospective investment.

Zcash Investment Trust™ (ZEC)
What is Zcash Investment Trust™?
×

Zcash Investment Trust™ is a privately offered trust available exclusively to accredited investors. Zcash Investment Trust’s investment objective is for the value of its shares to reflect the price performance of Zcash (“ZEC”), less fees and expenses. Modeled after Grayscale’s Bitcoin Investment Trust, Zcash Investment Trust was created for investors seeking exposure to ZEC through a traditional investment vehicle.

Zcash Investment Trust is not registered with the Securities and Exchange Commission and is not subject to disclosure and certain other requirements mandated by U.S. securities laws. Investors considering an investment in Zcash Investment Trust should carefully read Zcash Investment Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Zcash Investment Trust’s Private Placement Memorandum, including the Risk Factors beginning on page 8.

Why should I own shares of Zcash Investment Trust™ over purchasing outright ZEC?
×

Ease and Peace of Mind

Often, individuals and institutions seeking to directly purchase or sell ZEC must themselves transact via unfamiliar exchanges or intermediaries that in some cases may be unregulated and insecure.  This often requires investors to transmit funds to jurisdictions where they might not be comfortable. In addition, storing ZEC on one’s own can add additional headaches, as the private keys (the ZEC equivalent of passwords) which ensure access to an investor’s ZEC can be susceptible to loss or theft. This potentially exposes one’s ZEC position to partial or total loss, often with limited or no recourse to regain access to the ZEC.

In contrast, by investing in Zcash Investment Trust shares, investors avoid the challenges of purchasing, storing and transferring ZEC on their own and instead, pass these tasks to Grayscale and Zcash Investment Trust’s service providers, while maintaining their exposure to the price performance of ZEC. Zcash Investment Trust’s assets are safeguarded by a robust multi-factor security system that incorporates intense physical, cryptographic and procedural elements. This is done in order to mitigate the risks associated with a single point of failure. The system’s underlying protocols are designed by experienced security, financial, legal and technology professionals.

Cost Effective Order Fulfillment

Purchasing large orders of ZEC can be challenging. Few digital asset exchanges and order books can reliably fill large orders without significant price slippage. Depending on the timing and size of the transaction, a trade on a given exchange could move the market materially. Zcash Investment Trust’s authorized participant executes large purchase and sale orders through exchanges and over-the-counter transactions to create shares for investors at a blended daily average price based on the Tradeblock ZCX Index.

Titled, Transferable, and IRA Eligible

Shares of Zcash Investment Trust are titled securities, which are similar to other non-SEC registered common stocks and bonds that investors may own. Titled securities are familiar to financial and tax advisors, and easily transferred to beneficiaries under estate laws, Zcash Investment Trust shares are eligible to be held in certain IRAs, 401ks, and other brokerage and investment accounts. Consult your investment and tax advisors for additional information.

 

What are Zcash Investment Trust’s fees?
×

Zcash Investment Trust charges an annual administration and safekeeping fee of 2.5%, which accrues daily. For further details on Zcash Investment Trust’s fees, please review Zcash Investment Trust’s Private Placement Memorandum.

How is Zcash Investment Trust’s ZEC Holdings (Non-GAAP NAV) calculated?
×

Zcash Investment Trust’s ZEC Holdings (non-GAAP NAV) is calculated and published each business day at 4 p.m., New York time. The ZEC Holdings calculation is based off of TradeBlock’s ZCX Index, taking into account a trailing 24-hour VWAP across the major ZEC exchanges that comprise the index. For further details on how Zcash Investment Trust’s ZEC Holdings is calculated, please review Zcash Investment Trust’s Private Placement Memorandum.

Can I purchase Zcash Investment Trust™ shares in my retirement account?
×

It is possible that your IRA or retirement account provider may allow you to purchase shares in Zcash Investment Trust. For additional information, please inquire with the Grayscale team. Please note that Grayscale does not and will not provide any advice or recommendation regarding investment in Zcash Investment Trust and that you should consult your own advisers before making any decision to purchase shares in Zcash Investment Trust.

How are the ZEC underlying Zcash Investment Trust™ shares safeguarded?
×

Zcash Investment Trust’s assets are maintained with Ledger SAS, as Key Maintainer, in deep, cold storage vaults. The ZEC maintained with Ledger SAS reside on multi-factor digital addresses, the private keys for which are protected by intense cryptographic, physical and process security.

What are the tax consequences of owning shares in Zcash Investment Trust?
×

Zcash Investment Trust intends to take the position that it is a grantor trust for U.S. federal income tax purposes.  Assuming that Zcash Investment Trust is a grantor trust, Shareholders generally will be treated as if they directly owned their pro rata shares of the underlying assets held in Zcash Investment Trust. Shareholders also will be treated as if they directly received their respective pro rata shares of Zcash Investment Trust’s income, and directly incurred their pro rata shares of the Zcash Investment Trust’s expenses. Most state and local tax authorities follow U.S. income tax rules in this regard. Prospective investors in Zcash Investment Trust should discuss the tax consequences of an investment in Zcash Investment Trust with their tax advisors.

What are the risks of investing in Zcash Investment Trust?
×

As described more fully in Zcash Investment Trust’s Private Placement Memorandum, an investment in Zcash Investment Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Zcash Investment Trust, have experienced extreme volatility in recent periods and may continue to do so. In light of steep increases in the value of certain digital assets including ZEC over the course of 2017, multiple market observers have asserted that digital assets are currently experiencing a “bubble.” If these observers are correct, trading prices for many of the most popular digital assets, including those held by Zcash Investment Trust, could experience steep declines in value and Zcash Investment Trust’s shares could lose all or substantially all of their value. In addition, because Zcash Investment Trust’s shares are subject to a one-year holding period before they can be resold without restriction, investors in the shares will be required to bear the risk of lack of liquidity for at least one year. Please read Zcash Investment Trust’s Private Placement Memorandum carefully for a discussion of these and other risks.

What is an accredited investor?
×

Only accredited investors are eligible to invest in Zcash Investment Trust. An accredited investor includes:

  • Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or
  • Any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (excluding the value of the person’s primary residence and certain indebtedness secured by such person’s primary residence).

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

  • any trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring shares of Zcash Investment Trust, whose purchase is directed by a sophisticated person; or
  • any entity in which all of the equity owners are accredited investors.

For this purpose, a sophisticated person means a person who has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of a prospective investment.

Where can I find more information on the Zcash Network?
×

For more information on the Zcash Network visit: https://z.cash/

Digital Large Cap Fund™ (DLC)
What is Digital Large Cap Fund™?
×

Digital Large Cap Fund™ is a privately offered investment vehicle available exclusively to accredited investors that seek to invest in the top digital assets by market cap. Digital Large Cap Fund was created for investors seeking exposure to a diversified portfolio of the top liquid digital assets by market cap through a traditional investment vehicle. The Fund targets 70% coverage of the digital asset market.

Digital Large Cap Fund is a Cayman LLC and is not registered with the Securities and Exchange Commission and is not subject to disclosure and certain other requirements mandated by U.S. securities laws. Investors considering an investment in Digital Large Cap Fund should carefully read Digital Large Cap Fund’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Digital Large Cap Fund’s Private Placement Memorandum, including the Risk Factors beginning on page 11.

How is Digital Large Cap Fund constructed?
×

A digital asset will generally be eligible for inclusion in Digital Large Cap Fund if it satisfies certain market cap, liquidity, and coverage criteria (70%) as determined by the Manager. Digital assets that qualify for inclusion will be held in Digital Large Cap Fund’s portfolio on a market cap-weighted basis. For example, a digital asset with a larger market cap will have a higher representation in Digital Large Cap Fund’s portfolio. The Manager will rebalance Digital Large Cap Fund’s portfolio on a quarterly basis. For further details on Digital Large Cap Fund’s construction and rebalancing methodology, please review Digital Large Cap Fund’s Placement Memorandum.

Why should I own shares of Digital Large Cap Fund over purchasing digital assets outright?
×

Ease and Peace of Mind

Often, individuals and institutions seeking to directly purchase or sell digital assets must themselves transact via unfamiliar exchanges or intermediaries that in some cases may be unregulated and insecure. This often requires investors to transmit funds to jurisdictions where they might not be comfortable. In addition, storing digital assets on one’s own can add additional headaches, as the private keys (the digital asset equivalent of passwords) which ensure access to an investor’s digital assets can be susceptible to loss or theft. This potentially exposes one’s digital asset positions to partial or total loss, often with limited or no recourse to regain access to the digital assets.

In contrast, by investing in Digital Large Cap Fund shares, investors avoid the challenges of purchasing, storing and transferring digital assets on their own and instead, pass these tasks to Grayscale and Digital Large Cap Fund’s service providers, while maintaining their exposure to the price performance of digital assets. The Digital Large Cap Fund’s assets are safeguarded by a robust security system that uses industry-leading security standards. The system’s underlying protocols are designed by experienced security, financial, legal and technology professionals, and are overseen by a financial operations principal. The Digital Large Cap Fund’s financial statements are audited annually by Friedman LLP.

Cost Effective Order Fulfillment

Purchasing large orders of digital assets can be challenging. Few digital asset exchanges and order books can reliably fill large orders without significant price slippage. Depending on the timing and size of the transaction, a trade on a given exchange could move the market materially. The Digital Large Cap Fund’s authorized participant executes large purchase and sale orders through exchanges and over-the-counter transactions to create shares for investors at a blended daily average price based on the 24-hour VWAPs of the relevant TradeBlock Index for each digital asset, which are currently the TradeBlock XBX, ETX, XRX, BCX and LTX Indices.

Titled, Transferable, and IRA Eligible

Shares of Digital Large Cap Fund are titled securities, which are similar to other non-SEC registered common stocks and bonds that investors may own. Titled securities are familiar to financial and tax advisors, and easily transferred to beneficiaries under estate laws, Digital Large Cap Fund shares are eligible to be held in certain IRAs, 401ks, and other brokerage and investment accounts. Consult your investment and tax advisors for additional information.

What are Digital Large Cap Fund’s fees?
×

The Digital Large Cap Fund charges an annual administration and safekeeping fee of 3.0%, which accrues daily. For further details on Digital Large Cap Fund’s fees, please review Digital Large Cap Fund’s Private Placement Memorandum.

How are Digital Large Cap Fund’s Digital Asset Holdings (Non-GAAP NAV) calculated?
×

Digital Large Cap Fund’s Digital Asset Holdings (non-GAAP NAV) is calculated and published each business day at 4 p.m., New York time. The Digital Asset Holdings calculation is based off of TradeBlock’s XBX, ETX, XRX, BCX and LTX Indices, taking into account a trailing 24-hour VWAP across the major digital asset exchanges that comprise the indices. For further details on how Digital Large Cap Fund’s Digital Asset Holdings is calculated, please review Digital Large Cap Fund’s Private Placement Memorandum.

Can I purchase Digital Large Cap Fund shares in my retirement account?
×

It is possible that your IRA or retirement account provider may allow you to purchase shares in Digital Large Cap Fund. For additional information, please inquire with the Grayscale team. Please note that Grayscale does not and will not provide any advice or recommendation regarding investment in Digital Large Cap Fund and that you should consult your own advisers before making any decision to purchase shares in Digital Large Cap Fund.

How are the digital assets underlying Digital Large Cap Fund’s shares safeguarded?
×

Digital Large Cap Fund’s assets are maintained with Ledger SAS, as Key Maintainer, in deep cold storage vaults. The digital assets maintained with Ledger SAS reside on multi-factor digital addresses, the private keys for which are protected by intense cryptographic, physical and process security.

What are the tax consequences of owning shares in Digital Large Cap Fund?
×

For U.S. federal income tax purposes, Digital Large Cap Fund will be a passive foreign investment company (a “PFIC”) and, in certain circumstances, may be a controlled foreign corporation (a “CFC”). Digital Large Cap Fund will make available a PFIC Annual Information Statement that will include information required to permit each eligible shareholder to make a “qualified electing fund” election (a “QEF Election”) with respect to Digital Large Cap Fund. Each Shareholder that is a taxable U.S. person for U.S. federal income tax purposes is urged to make a QEF Election with respect to Digital Large Cap Fund. Prospective investors in Digital Large Cap Fund should discuss the U.S. federal income tax consequences of an investment in Digital Large Cap Fund with their tax advisors, including the consequences to them of an investment in a PFIC or CFC.

 

What are the risks of investing in Digital Large Cap Fund?
×

As described more fully in Digital Large Cap Fund’s Private Placement Memorandum, an investment in Digital Large Cap Fund is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Digital Large Cap Fund, have experienced extreme volatility in recent periods and may continue to do so. In light of steep increases in the value of certain digital assets including Bitcoin, Ethereum and Ripple over the course of 2017, multiple market observers have asserted that digital assets are currently experiencing a “bubble.” If these observers are correct, trading prices for many of the most popular digital assets, including those held by Digital Large Cap Fund, could experience steep declines in value and Digital Large Cap Fund’s shares could lose all or substantially all of their value. In addition, because Digital Large Cap Fund’s shares are subject to a one-year holding period before they can be resold without restriction, investors in the shares will be required to bear the risk of lack of liquidity for at least one year. Please read Digital Large Cap Fund’s Private Placement Memorandum carefully for a discussion of these and other risks.

What is an accredited investor?
×

Only accredited investors are eligible to invest in Digital Large Cap Fund. An accredited investor includes:

  • Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or
  • Any natural person whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (excluding the value of the person’s primary residence and certain indebtedness secured by such person’s primary residence).

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

  • any trust, with total assets in excess of $5 million, not formed for the specific purpose of acquiring shares of Digital Large Cap Fund, whose purchase is directed by a sophisticated person; or
  • any entity in which all of the equity owners are accredited investors.

For this purpose, a sophisticated person means a person who has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of a prospective investment.

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