Grayscale Investment Company Receives FINRA Approval to Trade Bitcoin Cash and Litecoin Publicly
Nicholas Otieno Jul 22, 2020 03:30
US regulators have approved shares of Grayscale Investment’s Litecoin and Bitcoin Cash Trusts for public trading.
The Financial Industry Regulatory Authority (FINRA) in the US has approved shares of Grayscale’s Litecoin Trust and Bitcoin Cash Trust for public trading.
New York-based Grayscale institutional investment cryptocurrency company will now make Litecoin and Bitcoin Cash available for public trading through shares of the company’s cryptocurrency trusts. This marks the first publicly-quoted securities in the United States, deriving value from Litecoin (LTC) and Bitcoin Cash (BCH).
Now BCH and LTC Trading on OTC markets
Both Trusts would be available on OTC markets under “LTCN” for Litecoin and “BCHG” for Bitcoin Cash. Buying these shares would enable people to invest in cryptocurrency without having to hold the underlying asset.
According to Grayscale, this strategy avoids the challenges of safekeeping, storing, and buying digital Litecoin or Bitcoin Cash directly.
Public trading for the two crypto assets remains subject to full compatibility with the Depository Trust Company (DTC), the world’s largest securities depository. Grayscale stated that: “There will be no trading volume in the shares’ public quotations until the respective shares are DTC eligible, which BCHG and LTCN are expected to receive soon.”
As of June 30, 2020, Grayscale has reported it has 509,400 shares of the Litecoin Trust, with each share worth 0.09433120 (4.11) Litecoin, totaling $2 million assets and 2,725,300 shares in its Bitcoin Cash Trust, with each share worth 0.00943312 ($2.16) Bitcoin Cash, totaling $5.8 million assets under management.
As of now, Litecoin and Bitcoin Cash are trading at $43.42 and $228.86, with both up 2% and 1.2%, respectively. Current CoinMarketCap figures show that Bitcoin Cash is rated as the fifth-largest cryptocurrency, while Litecoin is the ninth.
Institutional Interest in Crypto Investments Skyrockets
Grayscale investments company has been at the forefront of providing a means of investing in cryptocurrency without having to actually hold the digital assets. This service has gained lots of popularity among traditional investors who want to bypass volatility in the crypto space.
Grayscale has been providing several cryptocurrency products for OTC trading, and the latest being shares of the company’s Litecoin and Bitcoin Cash Trusts for trading on OTC markets.
In the recent past, the company obtained approval to offer shares for Bitcoin (BTC), Ethereum Classic (ETC), and Ethereum (ETH). Zcash (ZEC), Stellar Lumens (XLM), Horizen (ZEN), and XLM are also offered for trading via a trust at the company.
Litecoin and Bitcoin Cash are the company’s sixth and fifth publicly-quoted cryptocurrency products.
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