By Hassan Mehmood (Saudi Arabia)
After approval from the US financial regulator, Grayscale Investments rolls out Bitcoin Cash and Litecoin trusts for investors on OTC markets.
Trusts: BCHG and LTCN
The shares of Bitcoin Cash and Litecoin in trust forms are now available for traders. In an official announcement, Grayscale announced that the US Financial Industry Regulatory Authority (FINRA) has permitted the offering of cryptocurrencies shares for the public. According to the press release, “the Shares of both Grayscale® Bitcoin Cash Trust and Grayscale® Litecoin Trust have received approval from FINRA for public quotation under symbols: BCHG and LTCN respectively on OTC Markets, marking the introduction of the first publicly-quoted securities in the U.S. deriving value from Bitcoin Cash (BCH) and Litecoin (LTC)”.
The announcement reads:
“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.”
On June 30, Grayscale said the firm has 509,400 shares worth $2 million for Litecoin Trust and has 2,725,300 shares worth $5.8 million for Bitcoin Cash Trust.
Trusts are employed by the company to make them traditional assets thus decreasing the volatility. According to Grayscale Investments, “The Trusts are open-ended trusts sponsored by Grayscale and are intended to enable exposure to the price movement of the Trusts’ underlying assets through a traditional investment vehicle, avoiding the challenges of buying, storing, and safekeeping digital Bitcoin Cash or Litecoin directly.”
Before them, the crypto fund manager is offering public offerings for only four cryptocurrencies. Bitcoin Cash Trust (BCHG) and Litecoin Trust (LTCN) are the 5th and 6th public offerings offered by Grayscale.
It seems that the asset management firm has felt the demand for these digital assets on the part of institutional investors. Overall, the demand for Bitcoin and other digital assets have been increased since the inception of the Coronavirus pandemic. The Fed printing of surplus cash is another major reason why Grayscale trading volume has increased to an unprecedented limit.
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