Why is Grayscale GDLC dumping 20%? “Digital Large Cap” – 67% BTC, 25% ETH, 3% SOL

I get people want to rotate out of GBTC into the ETF, but GDLC “Digital Large Cap Fund” (67% BTC, 25% ETH, 3% SOL, 2.5% XRP, 1.5% ADA, 1% ADA) is trading at a 50% discount and still dumping? It's the only way to get ETH and SOL into a standard portfolio, seems like a bargain? Wondering if I should buy more or is wise to get out if it's reacting negatively to the ETF approval? ETH ETF is a lot more complex with staking and ICO so it's not a sure thing for April at all, but should get approval eventually. This was an interesting interview about ETF impact, ETH starts at 29:00. https://www.youtube.com/watch?v=evxvWd8qpV8


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8 thoughts on “Why is Grayscale GDLC dumping 20%? “Digital Large Cap” – 67% BTC, 25% ETH, 3% SOL”

  1. Regarding complexity, Canada has already approved spot ETH ETF’s (Galaxy, Purpose) and also has a staking ETH ETF (through 3iQ). So if the SEC happens to glance north to understand the impact of approving an ETF for ETH, they have a model to study.

  2. GBTC is an ETF now – they got uplifted. people move out of GBTC because 1) that ETF is fucking expensive and the 2) the trust had large fees for redemptions before, kinda trapping people into it. the GDLC is again an expensive instrument that doesn’t give you the tax benefits that an ETF provides and it’s also only available to institutional and accredited investors.

  3. No one, and I mean no one, is “trying to get SOL into a standard portfolio”

    See chart for proof

  4. How can it be trading at a discount, doesn’t an ETF resemble the original values? Doesn’t the creator have to buy them back? Seems like these are traded like stock

  5. It’s dumping because the majority of the holdings are Bitcoin and there are better options now for Bitcoin (with much lower fees). 

    An investor should sell this and if they still want exposure to ethereum buy that separately (in proportion) so they don’t have to pay the higher fee for the whole holding. 

  6. GBTC was trading at a big discount a while back and the hopes of the etf drove it back up near the value of the underlying holdings. GDLC will not have that catalyst since it’s a mixed fund but it does look interesting with that discount. Grayscale will probably buy back shares over time if there is a steep discount and eventually sell some of the underlying assets (Bitcoin, Ethereum, etc) at par making themselves even richer. I think it might be intriguing to go along on that ride with a portion of your capital but it’s a gamble.

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