Grayscale Investments has announced that shares of both Grayscale Bitcoin Cash Trust and Grayscale Litecoin Trust have received regulatory approval from FINRA for public quotation under symbols: BCHG and LTCN on OTC Markets. Grayscale states that this is the first publicly-quoted securities in the U.S. deriving value from Bitcoin Cash (BCH) and Litecoin (LTC).
The two 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. The Trusts have offered a private placement to accredited investors since March 2018.
Grayscale reports that as of June 30, 2020, there were 2,725,300 Shares outstanding of Grayscale Bitcoin Cash Trust and each share represented ownership of 0.00943312 Bitcoin Cash.
As of June 30, 2020, there were 509,400 Shares outstanding of Grayscale Litecoin Trust and each share represented ownership of 0.09433120 Litecoin.
Shares created through the Trust’s respective private placements become eligible to sell into the public market after a statutory one-year holding period. 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. Investors will be able to buy and sell freely-tradable BCHG and LTCN shares through their investment accounts in the same manner as they would other unregistered securities.
The investment objective of each Trust is for the shares to reflect the value of the digital currency held by the Trust. The Trusts will not generate any income and regularly distributes Bitcoin Cash and Litecoin respectively, to pay for its ongoing expenses. Therefore, the amount of Bitcoin Cash and Litecoin represented by each respective Share gradually decreases over time.
BCHG and LTCN represent Grayscale’s fifth and sixth publicly-quoted investment products. Grayscale Bitcoin Trust (OTCQX: GBTC), Grayscale Ethereum Trust (OTCQX: ETHE), Grayscale Ethereum Classic Trust (OTCQX: ETCG), and Grayscale Digital Large Cap Fund (OTCQX: GDLC) are also publicly-quoted and available to all investors with access to U.S. securities.
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