Grayscale Investments has announced that Grayscale Bitcoin Cash Trust and Grayscale Litecoin Trust have received DTC-eligibility to trade. Shares of Grayscale Bitcoin Cash Trust will be available to trade on OTC Markets under the symbol: BCHG and shares of Grayscale Litecoin Trust will be available to trade on OTC Markets under the symbol: LTCN.
It was previously announced that FINRA had completed its verification required to begin quoting BCHG and LTCN.
The Trusts are open-ended trusts sponsored by Grayscale and are intended to enable exposure to the price movement of the digital assets.
The Trusts have offered private placements to accredited investors since March 2018. As of July 31, 2020, Grayscale says there were 6,028,000 Shares outstanding of BCHG with each share representing 0.00941311 Bitcoin Cash.
As of July 31, 2020, there were 2,500,800 shares outstanding of LTCN with each share representing 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.
Grayscale says the investment objective of each Trust is for the shares to reflect the value of the assets held by such Trust, determined by reference to the appropriate TradeBlock index at 4:00 p.m. New York time, less such Trust’s expenses and other liabilities.
TradeBlock’s BCX Index is the reference for Grayscale Bitcoin Cash Trust and TradeBlock’s LTX Index is the reference for Grayscale Litecoin Trust. The Trusts will not generate any income and regularly distribute 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.
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