Grayscale Digital Large Cap Fund Holdings as of 3/19/2019:

  • Bitcoin: 68.0% Ethereum: 13.6% XRP: 12.4%
  • Bitcoin Cash: 2.7% Litecoin: 3.3%

Frequently Asked Questions

Grayscale Bitcoin Trust™
What is Grayscale Bitcoin Trust™?
×

Grayscale Bitcoin Trust™ is a privately offered trust available exclusively to accredited investors. Grayscale Bitcoin 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, Grayscale Bitcoin Trust was created for investors seeking exposure to bitcoin through a traditional investment vehicle. Grayscale Bitcoin Trust is publicly quoted on OTCQX®, the top tier operated by OTC Markets, under the ticker: GBTC.

Grayscale Bitcoin 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 Grayscale Bitcoin Trust should carefully read Grayscale Bitcoin Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Grayscale Bitcoin Trust’s Private Placement Memorandum, including the Risk Factors therein.

Why should I own shares of Grayscale Bitcoin 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 Grayscale Bitcoin Trust shares, investors avoid the challenges of purchasing, storing and transferring bitcoin on their own and instead, pass these tasks to Grayscale and Grayscale Bitcoin Trust’s service providers, while maintaining their exposure to the price performance of bitcoin. Grayscale Bitcoin 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. Grayscale Bitcoin 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. Grayscale Bitcoin 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 Grayscale Bitcoin 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, Grayscale Bitcoin 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 Grayscale Bitcoin Trust’s fees?
×

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

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

Qualified accredited investors are eligible to directly invest in Grayscale Bitcoin Trust and purchase shares at the daily Bitcoin Holdings per Share (non-GAAP NAV based on the TradeBlock XBX Index). Shares purchased directly from Grayscale Bitcoin Trust are restricted and subject to significant limitations on resale and transferability. Conversely, investors may choose to purchase eligible Grayscale Bitcoin 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 Grayscale Bitcoin Trust Bitcoin Holdings (non-GAAP NAV) calculated?
×

Grayscale Bitcoin 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 Grayscale Bitcoin Trust’s Private Placement Memorandum.

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

It is possible that your IRA or retirement account provider may allow you to purchase shares in Grayscale Bitcoin 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 Grayscale Bitcoin Trust and that you should consult your own advisers before making any decision to purchase shares in Grayscale Bitcoin Trust.

How are the bitcoin underlying Grayscale Bitcoin Trust shares safeguarded?
×

Grayscale Bitcoin 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 Grayscale Bitcoin Trust?
×

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

What are the risks of investing in Grayscale Bitcoin Trust?
×

As described more fully in Grayscale Bitcoin Trust’s Private Placement Memorandum, an investment in Grayscale Bitcoin Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Grayscale Bitcoin 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 Grayscale Bitcoin Trust, could experience steep declines in value and Grayscale Bitcoin Trust’s shares could lose all or substantially all of their value. In addition, because Grayscale Bitcoin 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 Grayscale Bitcoin 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 Grayscale Bitcoin 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 Grayscale Bitcoin 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.

Grayscale Bitcoin Cash Trust™
What is Grayscale Bitcoin Cash Trust?
×

Grayscale Bitcoin Cash Trust™ is a privately offered trust available exclusively to accredited investors. Grayscale Bitcoin Cash 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 Grayscale Bitcoin Trust, Grayscale Bitcoin Cash Trust was created for investors seeking exposure to BCH through a traditional investment vehicle.

Grayscale Bitcoin Cash 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 Grayscale Bitcoin Cash Trust should carefully read Grayscale Bitcoin Cash Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Grayscale Bitcoin Cash Trust’s Private Placement Memorandum, including the Risk Factors therein.

Why should I own shares of Grayscale Bitcoin Cash 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 Grayscale Bitcoin Cash Trust shares, investors avoid the challenges of purchasing, storing and transferring BCH on their own and instead, pass these tasks to Grayscale and Grayscale Bitcoin Cash 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. Grayscale Bitcoin Cash 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 Grayscale Bitcoin Cash 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, Grayscale Bitcoin Cash 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 Grayscale Bitcoin Cash Trust's fees?
×

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

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

Grayscale Bitcoin Cash 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 Grayscale Bitcoin Cash Trust’s BCH Holdings is calculated, please review Grayscale Bitcoin Cash Trust’s Private Placement Memorandum.

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

It is possible that your IRA or retirement account provider may allow you to purchase shares in Grayscale Bitcoin Cash 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 Grayscale Bitcoin Cash Trust and that you should consult your own advisers before making any decision to purchase shares in Grayscale Bitcoin Cash Trust.

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

Grayscale Bitcoin Cash 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 Grayscale Bitcoin Cash Trust?
×

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

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

As described more fully in Grayscale Bitcoin Cash Trust’s Private Placement Memorandum, an investment in Grayscale Bitcoin Cash Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Grayscale Bitcoin Cash 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 Grayscale Bitcoin Cash Trust, could experience steep declines in value and Grayscale Bitcoin Cash Trust’s shares could lose all or substantially all of their value. In addition, because Grayscale Bitcoin Cash 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 Grayscale Bitcoin Cash 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 Grayscale Bitcoin Cash 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 Grayscale Bitcoin Cash 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.

Grayscale Ethereum Trust™
What is Ethereum Investment Trust™?
×

Grayscale Ethereum Trust is a privately offered trust available exclusively to accredited investors.Grayscale Ethereum 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, Grayscale Ethereum Trust (ETH) was created for investors seeking exposure to ETH through a traditional investment vehicle.

Grayscale Ethereum 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 Grayscale Ethereum Trust should carefully read Grayscale Ethereum Trust Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Grayscale Ethereum Trust 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 Grayscale Ethereum Trust’s shares, investors avoid the challenges of purchasing, storing and transferring ETH on their own and instead, pass these tasks to Grayscale and Grayscale Ethereum Trust service providers, while maintaining their exposure to the price performance of ETH. Grayscale 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. Grayscale Ethereum Trust 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 Grayscale Ethereum 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, Grayscale Ethereum Trus’s 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 Grayscale Ethereum Trust's fees?
×

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

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

Grayscale Ethereum 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 Grayscale Ethereum Trust’s ETH Holdings is calculated, please review Grayscale Ethereum Trust’s Private Placement Memorandum.

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

It is possible that your IRA or retirement account provider may allow you to purchase shares in Grayscale Ethereum 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 Grayscale Ethereum Trust and that you should consult your own advisers before making any decision to purchase shares in Grayscale Ethereum Trust.

How are the ETH underlying Grayscale Ethereum Trust's shares safeguarded?
×

Grayscale Ethereum 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 Grayscale Ethereum Trust?
×

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

What are the risks of investing in Grayscale Ethereum Trust?
×

As described more fully in Grayscale Ethereum Trust’s Private Placement Memorandum, an investment in Grayscale Ethereum Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Grayscale Ethereum 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 Grayscale Ethereum Trust, could experience steep declines in value and Grayscale Ethereum Trust’s shares could lose all or substantially all of their value. In addition, because Grayscale Ethereum 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 Grayscale Ethereum 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 Grayscale Ethereum 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 Grayscale Ethereum 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.

Grayscale Ethereum Classic Trust™
What is Grayscale Ethereum Classic Trust™?
×

Grayscale Ethereum Classic Trust™ is a privately offered trust available exclusively to accredited investors. Grayscale Ethereum Classic 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 Grayscale Bitcoin Trust, Grayscale Ethereum Classic Trust was created for investors seeking exposure to ETC through a traditional investment vehicle.

Grayscale Ethereum Classic 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 Grayscale Ethereum Classic Trust should carefully read Grayscale Ethereum Classic Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Grayscale Ethereum Classic Trust’s Private Placement Memorandum, including the Risk Factors therein.

Why should I own shares of Grayscale Ethereum Classic 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 Grayscale Ethereum Classic Trust shares, investors avoid the challenges of purchasing, storing and transferring ETC on their own and instead, pass these tasks to Grayscale and Grayscale Ethereum Classic 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. Grayscale Ethereum Classic 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 Grayscale Ethereum Classic 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, Grayscale Ethereum Classic 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 Grayscale Ethereum Classic Trust’s fees?
×

Grayscale Ethereum Classic 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 Grayscale Ethereum Classic 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 Grayscale Ethereum Classic Trust’s fees, please review Grayscale Ethereum Classic Trust’s Private Placement Memorandum.

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

Grayscale Ethereum Classic 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 Grayscale Ethereum Classic Trust’s ETC Holdings is calculated, please review Grayscale Ethereum Classic Trust’s Private Placement Memorandum.

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

It is possible that your IRA or retirement account provider may allow you to purchase shares in Grayscale Ethereum Classic 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 Grayscale Ethereum Classic Trust and that you should consult your own advisers before making any decision to purchase shares in Grayscale Ethereum Classic Trust.

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

Grayscale Ethereum Classic 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 Grayscale Ethereum Classic Trust?
×

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

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

As described more fully in Grayscale Ethereum Classic Trust’s Private Placement Memorandum, an investment in Grayscale Ethereum Classic Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Grayscale Ethereum Classic 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 Grayscale Ethereum Classic Trust, could experience steep declines in value and Grayscale Ethereum Classic Trust’s shares could lose all or substantially all of their value. In addition, because Grayscale Ethereum Classic 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 Grayscale Ethereum Classic 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 Grayscale Ethereum Classic 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 Grayscale Ethereum Classic 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.

Grayscale Horizen Trust™
What is Grayscale Horizen Trust™?
×

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

Grayscale Horizen 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 Grayscale Horizen Trust should carefully read Grayscale Horizen Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Grayscale Horizen Trust’s Private Placement Memorandum, including the Risk Factors therein.

Why should I own shares of Grayscale Horizen Trust over purchasing ZEN outright?
×

Ease and Peace of Mind
Often, individuals and institutions seeking to directly purchase or sell ZEN 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 ZEN on one’s own can add additional headaches, as the private keys (the ZEN equivalent of passwords) which ensure access to an investor’s ZEN can be susceptible to loss or theft. This potentially exposes one’s ZEN position to partial or total loss, often with limited or no recourse to regain access to the ZEN.

In contrast, by investing in Grayscale Horizen Trust shares, investors avoid the challenges of purchasing, storing and transferring ZEN on their own and instead, pass these tasks to Grayscale and Grayscale Horizen Trust’s service providers, while maintaining their exposure to the price performance of ZEN. Grayscale Horizen 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 ZEN 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. Grayscale Horizen 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 provided by Grayscale’s reference rate service provider, Tradeblock.

Titled, Transferable, and IRA Eligible
Shares of Grayscale Horizen 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, Grayscale Horizen 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 Grayscale Horizen Trust’s fees?
×

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

How is Grayscale Horizen Trust (ZEN)’s ZEN Holdings (non-GAAP NAV) calculated?
×

Grayscale Horizen Trust’s ZEN Holdings (non-GAAP NAV) is calculated and published each business day at 4 p.m., New York time. The ZEN Holdings calculation is based off of reference rate provided by Tradeblock, taking into account a trailing 24-hour VWAP across the major ZEN exchanges that comprise the reference rate. For further details on how Grayscale Horizen Trust’s ZEN Holdings is calculated, please review Grayscale Horizen Trust’s Private Placement Memorandum.

Can I purchase Grayscale Horizen Trust shares in my retirement account?
×

It is possible that your IRA or retirement account provider may allow you to purchase shares in Grayscale Horizen 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 Grayscale Horizen Trust and that you should consult your own advisers before making any decision to purchase shares in Grayscale Horizen Trust.

How are the ZEN underlying Grayscale Horizen Trust shares safeguarded?
×

Grayscale Horizen Trust’s assets are maintained with Digital Asset Custody Company, Inc., as Key Maintainer, in deep, cold storage vaults. The ZEN maintained with Digital Asset Custody Company, Inc. 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 Grayscale Horizen Trust?
×

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

What are the risks of investing in Grayscale Horizen Trust?
×

As described more fully in Grayscale Horizen Trust’s Private Placement Memorandum, an investment in Grayscale Horizen Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Grayscale Horizen 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 ZEN 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 Grayscale Horizen Trust, could experience steep declines in value and Grayscale Horizen Trust’s shares could lose all or substantially all of their value. In addition, because Grayscale Horizen 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 Grayscale Horizen 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 Grayscale Horizen 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 Grayscale Horizen 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.

What is Horizen?
×

Horizen is the privacy-oriented cryptocurrency and a leading-edge technology platform of which ZEN is the native digital currency.

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

For more information on the Horizen Network visit:
https://www.horizen.global/

Grayscale Litecoin Trust™
What is Grayscale Litecoin Trust™?
×

Grayscale Litecoin Trust™ is a privately offered trust available exclusively to accredited investors. Grayscale Litecoin 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 Grayscale Bitcoin Trust, Grayscale Litecoin Trust was created for investors seeking exposure to LTC through a traditional investment vehicle.

Grayscale Litecoin 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 Grayscale Litecoin Trust should carefully read Grayscale Litecoin Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Grayscale Litecoin Trust’s Private Placement Memorandum, including the Risk Factors therein.

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 Grayscale Litecoin Trust shares, investors avoid the challenges of purchasing, storing and transferring LTC on their own and instead, pass these tasks to Grayscale and Grayscale Litecoin 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. Grayscale Litecoin 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 Grayscale Litecoin 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, Grayscale Litecoin 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 Grayscale Litecoin Trust’s fees?
×

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

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

Grayscale Litecoin 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 Grayscale Litecoin Trust’s LTC Holdings is calculated, please review Grayscale Litecoin Trust’s Private Placement Memorandum.

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

It is possible that your IRA or retirement account provider may allow you to purchase shares in Grayscale Litecoin 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 Grayscale Litecoin Trust and that you should consult your own advisers before making any decision to purchase shares in Grayscale Litecoin Trust.

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

Grayscale Litecoin 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 Grayscale Litecoin Trust?
×

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

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

As described more fully in Grayscale Litecoin Trust’s Private Placement Memorandum, an investment in Grayscale Litecoin Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Grayscale Litecoin 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 Grayscale Litecoin Trust, could experience steep declines in value and Grayscale Litecoin Trust’s shares could lose all or substantially all of their value. In addition, because Grayscale Litecoin 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 Grayscale Litecoin 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 Grayscale Litecoin 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 Grayscale Litecoin 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.

Grayscale Stellar Lumens Trust™
What is Grayscale Stellar Lumens Trust™?
×

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

Grayscale Stellar Lumens 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 Grayscale Stellar Lumens Trust should carefully read Grayscale Stellar Lumens Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Grayscale Stellar Lumens Trust’s Private Placement Memorandum, including the Risk Factors therein.

Why should I own shares of Grayscale Stellar Lumens Trust over purchasing XLM outright?
×

Ease and Peace of Mind
Often, individuals and institutions seeking to directly purchase or sell XLM 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 XLM on one’s own can add additional headaches, as the private keys (the XLM equivalent of passwords) which ensure access to an investor’s XLM can be susceptible to loss or theft. This potentially exposes one’s XLM position to partial or total loss, often with limited or no recourse to regain access to the XLM.

In contrast, by investing in Grayscale Stellar Lumens Trust shares, investors avoid the challenges of purchasing, storing and transferring XLM on their own and instead, pass these tasks to Grayscale and Grayscale Stellar Lumens Trust’s service providers, while maintaining their exposure to the price performance of XLM. Grayscale Stellar Lumens 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 XLM 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. Grayscale Stellar Lumens 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 provided by Grayscale’s reference rate service provider, TradeBlock.

Titled, Transferable, and IRA Eligible
Shares of Grayscale Stellar Lumens 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, Grayscale Stellar Lumens 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 Grayscale Stellar Lumens Trust’s fees?
×

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

How is Grayscale Stellar Lumens Trust’s XLM Holdings (non-GAAP NAV) calculated?
×

Grayscale Stellar Lumens Trust’s XLM Holdings (non-GAAP NAV) is calculated and published each business day at 4 p.m., New York time. The XLM Holdings calculation is based off of reference rate provided by Tradeblock, taking into account a trailing 24-hour VWAP across the major XLM exchanges that comprise the reference rate. For further details on how Grayscale Stellar Lumens Trust’s XLM Holdings is calculated, please review Grayscale Stellar Lumens Trust’s Private Placement Memorandum.

Can I purchase Grayscale Stellar Lumens Trust shares in my retirement account?
×

It is possible that your IRA or retirement account provider may allow you to purchase shares in Grayscale Stellar Lumens 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 Grayscale Stellar Lumens Trust and that you should consult your own advisers before making any decision to purchase shares in Grayscale Stellar Lumens Trust.

How are the XLM underlying Grayscale Stellar Lumens Trust shares safeguarded?
×

Grayscale Stellar Lumens Trust’s assets are maintained with Digital Asset Custody Company, Inc., as Key Maintainer, in deep, cold storage vaults. The XLM maintained with Digital Asset Custody Company, Inc. 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 Grayscale Stellar Lumens Trust?
×

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

What are the risks of investing in Grayscale Stellar Lumens Trust?
×

As described more fully in Grayscale Stellar Lumens Trust’s Private Placement Memorandum, an investment in Grayscale Stellar Lumens Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Grayscale Stellar Lumens 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 XLM 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 Grayscale Stellar Lumens Trust, could experience steep declines in value and Grayscale Stellar Lumens Trust’s shares could lose all or substantially all of their value. In addition, because Grayscale Stellar Lumens 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 Grayscale Stellar Lumens 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 Grayscale Stellar Lumens 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 Grayscale Stellar Lumens 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.

What is Stellar?
×

Stellar is digital asset platform of which XLM is the native digital currency. “Stellar” is a trademark of the Stellar Development Foundation. The Trust is not affiliated with, endorsed by, or supported by the Stellar Development Foundation.

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

For more information on the Stellar Network visit:  https://www.stellar.org/

Grayscale XRP Trust™
What is Grayscale XRP Trust™?
×

Grayscale XRP Trust™ is a privately offered trust available exclusively to accredited investors. Grayscale XRP 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 Grayscale Bitcoin Trust, Grayscale XRP Trust was created for investors seeking exposure to XRP through a traditional investment vehicle.

Grayscale XRP 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 Grayscale XRP Trust should carefully read Grayscale XRP Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Grayscale XRP Trust’s Private Placement Memorandum, including the Risk Factors therein.

Why should I own shares of Grayscale XRP 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 Grayscale XRP Trust shares, investors avoid the challenges of purchasing, storing and transferring XRP on their own and instead, pass these tasks to Grayscale and Grayscale XRP 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. Grayscale XRP 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 Grayscale XRP 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, Grayscale XRP 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 Grayscale XRP Trust’s fees?
×

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

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

Grayscale XRP 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 Grayscale XRP Trust’s XRP Holdings is calculated, please review Grayscale XRP Trust’s Private Placement Memorandum.

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

It is possible that your IRA or retirement account provider may allow you to purchase shares in Grayscale XRP 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 Grayscale XRP Trust and that you should consult your own advisers before making any decision to purchase shares in Grayscale XRP Trust.

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

Grayscale XRP 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 Grayscale XRP Trust?
×

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

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

As described more fully in Grayscale XRP Trust’s Private Placement Memorandum, an investment in Grayscale XRP Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Grayscale XRP 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 Grayscale XRP Trust, could experience steep declines in value and Grayscale XRP Trust’s shares could lose all or substantially all of their value. In addition, because Grayscale XRP 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 Grayscale XRP 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 Grayscale XRP 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 Grayscale XRP 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.

Grayscale Zcash Trust™
What is Grayscale Zcash Trust™?
×

Grayscale Zcash Trust™ is a privately offered trust available exclusively to accredited investors. Grayscale Zcash 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 Grayscale Bitcoin Trust, Grayscale Zcash Trust was created for investors seeking exposure to ZEC through a traditional investment vehicle.

Grayscale Zcash 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 Grayscale Zcash Trust should carefully read Grayscale Zcash Trust’s Private Placement Memorandum, which is available upon request from Grayscale. These FAQ’s are qualified in all respects by the information in Grayscale Zcash Trust’s Private Placement Memorandum, including the Risk Factors therein.

Why should I own shares of Grayscale Zcash Trust (ZEC) 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 Grayscale Zcash Trust shares, investors avoid the challenges of purchasing, storing and transferring ZEC on their own and instead, pass these tasks to Grayscale and Grayscale Zcash Trust’s service providers, while maintaining their exposure to the price performance of ZEC. Grayscale Zcash 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. Grayscale Zcash 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 Grayscale Zcash 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, Grayscale Zcash 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 Grayscale Zcash Trust’s fees?
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Grayscale Zcash Trust charges an annual administration and safekeeping fee of 2.5%, which accrues daily. For further details on Grayscale Zcash Trust’s fees, please review Grayscale Zcash Trust’s Private Placement Memorandum.

How is Grayscale Zcash Trust’s ZEC Holdings (non-GAAP NAV) calculated?
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Grayscale Zcash 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 Grayscale Zcash Trust’s ZEC Holdings is calculated, please review Grayscale Zcash Trust’s Private Placement Memorandum.

Can I purchase Grayscale Zcash Trust shares in my retirement account?
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It is possible that your IRA or retirement account provider may allow you to purchase shares in Grayscale Zcash 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 Grayscale Zcash Trust and that you should consult your own advisers before making any decision to purchase shares in Grayscale Zcash Trust.

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

What are the risks of investing in Grayscale Zcash Trust?
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As described more fully in Grayscale Zcash Trust’s Private Placement Memorandum, an investment in Grayscale Zcash Trust is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Grayscale Zcash 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 Grayscale Zcash Trust, could experience steep declines in value and Grayscale Zcash Trust’s shares could lose all or substantially all of their value. In addition, because Grayscale Zcash 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 Grayscale Zcash Trust’s Private Placement Memorandum carefully for a discussion of these and other risks.

What is an accredited investor?
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Only accredited investors are eligible to invest in Grayscale Zcash 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 Grayscale Zcash 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?
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For more information on the Zcash Network visit: https://z.cash/

Grayscale Digital Large Cap Fund™
What is Grayscale Digital Large Cap Fund™?
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Grayscale 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. Grayscale 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.

Grayscale 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 Grayscale Digital Large Cap Fund should carefully read Grayscale 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 Grayscale Digital Large Cap Fund’s Private Placement Memorandum, including the Risk Factors beginning on page 11.

How is Grayscale Digital Large Cap Fund constructed?
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A digital asset will generally be eligible for inclusion in Grayscale 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 Grayscale 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 Grayscale Digital Large Cap Fund’s portfolio. The Manager will rebalance Grayscale Digital Large Cap Fund’s portfolio on a quarterly basis. For further details on Grayscale Digital Large Cap Fund’s construction and rebalancing methodology, please review Grayscale Digital Large Cap Fund’s Placement Memorandum.

Why should I own shares of Grayscale Digital Large Cap Fund over purchasing digital assets outright?
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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 Grayscale 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 Grayscale Digital Large Cap Fund’s service providers, while maintaining their exposure to the price performance of digital assets. The Grayscale 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 Grayscale 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 Grayscale 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 Grayscale 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, Grayscale 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 Grayscale Digital Large Cap Fund’s fees?
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The Grayscale Digital Large Cap Fund charges an annual administration and safekeeping fee of 3.0%, which accrues daily. For further details on Grayscale Digital Large Cap Fund’s fees, please review Grayscale Digital Large Cap Fund’s Private Placement Memorandum.

How are Grayscale Digital Large Cap Fund’s Digital Asset Holdings (Non-GAAP NAV) calculated?
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Grayscale 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 Grayscale Digital Large Cap Fund’s Digital Asset Holdings is calculated, please review Grayscale Digital Large Cap Fund’s Private Placement Memorandum.

Can I purchase Grayscale 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 Grayscale 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 Grayscale Digital Large Cap Fund and that you should consult your own advisers before making any decision to purchase shares in Grayscale Digital Large Cap Fund.

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

Grayscale 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 Grayscale Digital Large Cap Fund?
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For U.S. federal income tax purposes, Grayscale 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”). Grayscale 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 Grayscale 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 Grayscale Digital Large Cap Fund. Prospective investors in Grayscale Digital Large Cap Fund should discuss the U.S. federal income tax consequences of an investment in Grayscale 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 Grayscale Digital Large Cap Fund?
×

As described more fully in Grayscale Digital Large Cap Fund’s Private Placement Memorandum, an investment in Grayscale Digital Large Cap Fund is highly speculative in nature. The trading prices of many digital assets, including those that will initially be held by Grayscale 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 Grayscale Digital Large Cap Fund, could experience steep declines in value and Grayscale Digital Large Cap Fund’s shares could lose all or substantially all of their value. In addition, because Grayscale 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 Grayscale Digital Large Cap Fund’s Private Placement Memorandum carefully for a discussion of these and other risks.

What is an accredited investor?
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Only accredited investors are eligible to invest in Grayscale 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 Grayscale 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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