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Grayscale Investments Opens Trading for Grayscale Bitcoin Cash and Litecoin Trusts

Lucas Cacioli   Aug 18, 2020 16:00 2 Min Read

Grayscale Investments, the world’s largest digital currency asset manager has opened public trading for two prominent altcoins, the Grayscale Trust for Bitcoin Cash and Litecoin.

Grayscale Investments has announced eligible Shares of Grayscale Bitcoin Cash Trust will be available to trade on OTC Markets under the symbol: BCHG and eligible Shares of Grayscale Litecoin Trust will be available to trade on OTC Markets under the symbol: LTCN.

The institutional-grade digital asset investment firm Grayscale, has launched these public altcoin offering after receiving the approval of the Financial Industry Regulatory Authority (FINRA) back in July.

The BCHG and LTCN trusts are not registered with the United States Securities and Exchange Commission (SEC) but allow mainstream investors exposure to cryptocurrency assets without having to buy and store the tokens themselves.

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.

The Trusts have offered private placements to accredited investors since March 2018. As of July 31, 2020, there were 2,500,800 Shares outstanding of LTCN and each Share represented ownership of 0.09413112 Litecoin. Shares created through each Trust’s respective private placement become eligible to sell into the public market after a statutory one-year holding period under Rule 144 of the Securities Act.

All investors with access to US securities will be able to buy and sell freely-tradable shares of BCHG and LTCN through their investment accounts in the same manner as they would other unregistered securities.

There is currently $16.8 million worth of BCH under management in the Bitcoin Cash Trust and $13.5 million in Grayscale’s Litecoin Trust. The New York-based Grayscale will take a 2.5% cut of the trust each year—this means that the amount of Bitcoin Cash and Litecoin held in its trust will decrease over time.

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. Litecoin and Bitcoin Cash are now the company’s sixth and fifth publicly-traded cryptocurrency products.

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. These are the largest coins by marketcap on the market, except for Chainlink which recently surged into fifth position.

 


Image source: Shutterstock

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