Fri, Sep 6, 12:41 PM (106 days ago)
Grayscale Digital Large Cap Fund LLC's 10-K report for the fiscal year ending June 30, 2024, highlights key financial metrics and strategic developments. The Fund's market value was approximately $254.4 million, with 15.9 million Shares outstanding. The Fund's investment objective is to track the value of major digital assets, primarily those in the CoinDesk Large Cap Select Index (DLCS), which now covers about 83% of the digital asset market capitalization. However, the Fund has struggled to meet its investment objective, trading at an average discount of 43% to its NAV per Share during the reporting period. The report outlines significant risks, including regulatory scrutiny from the SEC, extreme volatility in digital asset prices, and potential operational disruptions. The Fund is not currently operating a redemption program, which has historically led to substantial premiums or discounts in Share pricing relative to NAV. The Manager, Grayscale Investments, LLC, has discretion over portfolio adjustments and fee structures, with a current management fee of 2.5%. Future outlook remains uncertain due to evolving regulations and market conditions impacting digital assets.