August 18, 2020
Litecoin Trust (LTCN) and Bitcoin Cash Trust (BCHG), from Grayscale Investments, received DTC eligibility last Monday. This means the stocks can begin trading in public. The firm’s latest funds give investors experience with the crypto assets bitcoin cash and litecoin, and the shares will be traded through secondary markets.
LTC and BCH’s supporters were pleased to hear that Grayscale’s new crypto trusts met DTC eligibility on Monday. This means qualified investors can gain these two trusts and invest in them like other securities.
DTC eligibility means that the securities, in this case, LTCN and BCHG, can be pledged through DTC. It is the leading securities depository in the world, managing $35 trillion worth of securities on deposit.
By investing in eligible shares, investors can now gain exposure to these crypto assets. The Bitcoin Cash Trust will be available to trade on over-the-counter (OTC) markets, as stated in the announcement, and shares will leverage the ticker symbol: BCHG.
Eligible Shares of Grayscale Investments’ Litecoin Trust will be accessible to trade on OTC Markets under the symbol: LTCN.
“The Trusts are open-ended trusts sponsored by Grayscale and are intended to enable exposure to the price movement of each Trust’s underlying assets through an investment vehicle, avoiding the challenges of buying, storing, and safekeeping digital Bitcoin Cash or Litecoin directly,” clarifies Grayscale.
“All investors with access to U.S. 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.”
Grayscale’s announcement stated that the trusts saw secluded placements way back March 2018. The shares enlisted through each trust’s respective investment are obtainable to sell into the public market. But, Rule 144 of the Securities Act obliges a “statutory one-year holding period.”
As of July 31, 2020, 6,028,000 shares were outstanding of BCHG, and each share represented ownership of 0.00941311 bitcoin cash,” Grayscale’s announcement on Monday states. “2,500,800 shares were outstanding of LTCN, and each share represented ownership of 0.09413112 litecoin,” the press release adds.
From the date of July 31, 2020, 6,028,000 shares were outstanding of BCHG, and each share represented ownership of 0.00941311 bitcoin cash. Grayscale’s announcement last Monday, states. “There 2,500,800 shares outstanding of LTCN and each share represented ownership of 0.09413112 litecoin,”
Grayscale Investments’ statement on Monday further closes:
“All investors with access to U.S. 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.”
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