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<center> Grayscale, a subsidiary of Digital Currency Group, has announced today the launch of their fourth cryptocurrency tied exchange traded fund, named Digital Large Cap Fund. As supposed to Grayscale's previous funds, which exclusively dealt with a single crypto like the Bitcoin Investment Trust [GBTC:OTCQX], this offering is being built to provide investors with a diversified holding of the five largest cryptocurrencies based on market capitalization.
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In a report with CoinDesk, Grayscale managing director Michael Sonnenshein said:
>  "This gives them the ability to make a singular investment that is going to give them exposure to approximately 70 percent of the market via this one vehicle."

The total assets under management by Grayscale has significantly decreased since the ATH of cryptocurrency back in December, shedding close to $1 billion in the past couple months. In that month Barry Silbert, the founder of  Digital Currency Group, tweeted that the firm currently had $3 billion in equity under it's control. Yet as of February that number has dropped to around $2.1 billion.

Accredited investors interested in allocating capital into the fund will be able to purchase shares in the investment vehicle that will be backed by actual cryptocurrency, less the fund's expenses and other liabilities. The valuation will be based on the Digital Asset Reference Rate provided by the institutional trading tech company TradeBlock. While it is interesting that they decided to create a fund with the top 5 cryptocurrencies by market cap, it begs the question of whether the true value of a crypto is derived from it's current cap and what they will do if one or multiple of those coins lose their top position.
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