American digital asset manager Grayscale Investments have been given the green light by the Financial Industry Regulatory Authority (FINRA) to proceed with the first publicly quoted securities in the U.S. based upon Litecoin (LTC) and Bitcoin Cash (BCH).
Grayscale $BCH Trust & Grayscale $LTC Trust have received FINRA approval for trading…which makes for 6 publicly-traded products.
NOTE: There will be no trading volume in Symbols: $BCHG or $LTCN until the shares are DTC eligible, which is expected soon. https://t.co/w00a39C280 pic.twitter.com/Fp0T2BAUEz
â€” Grayscale (@GrayscaleInvest) July 20, 2020
Shares in the two trusts have been on offer through private placement to accredited investors since March 2018 and will begin trading under the ticker symbols LTCN and BCHG on the more accessible Over the Counter (OTC) markets as soon as they become eligible through the Depository Trust Company (DTC) settlement process.
No Buying or Storing
For investors and traders in the traditional markets, these trusts provide exposure to price movements of Litecoin and Bitcoin Cash without them needing to directly buy or store the digital assets.
According to Grayscale, last month there were 2,725,300 Shares outstanding of BCHG and “…each share represented ownership of 0.00943312 Bitcoin Cash.” For LTCN there were 509,400 Shares outstanding where “…each share represented ownership of 0.09433120 Litecoin.”
Grayscale, who have over $4.1 billion in assets under management, already have four other trusts available through the OTC market namely Bitcoin Trust (GBTC), Ethereum Trust (ETHE), Ethereum Classic Trust (ETCG), and a Digital Large Cap Fund (GDLC) that covers the upper 70% of the digital currency market, judged by size of market capitalisation.
In addition, the company offer other avenues to accredited investors to track price movements in Horizen (ZEN), Stellar Lumens (XLM), XRP, and Zcash (ZEC).
Grayscale’s most recent quarterly review shows they have strong support from institutional investors, especially hedge funds, which has led to a current average weekly investment into all of the company’s listed products of $69.7 million.