Cryptocurrency investors can now trade in Grayscale’s Litecoin Trust and Bitcoin Cash Trust
Grayscale's Bitcoin Cash Trust and Litecoin Trust received DTC eligibility.
Wed, 19 Aug 2020, 14:39 pm UTC
Cryptocurrency investors now have two more options from Grayscale Investments’ products lineup. Bitcoin Cash (BCH) and Litecoin (LTC) fans as well as institutional investors can now get exposure to the price movements of the two crypto assets via the investment firm’s Litecoin Trust (LTCN) and Bitcoin Cash Trust (BCHG).
On Monday, August 17, Grayscale announced that both its LTCN and BCHG have received DTC eligibility. “Grayscale Investments®, the world’s largest digital currency asset manager, today announced that Grayscale® Bitcoin Cash Trust and Grayscale® Litecoin Trust have received DTC-eligibility,” the company wrote on a press release published on GlobeNewswire.com.
What this means is that investors now have access to the two trusts and invest in them, according to Bitcoin.com. “Essentially, DTC eligibility means that the securities, in this case, LTCN and BCHG are able to be pledged through the DTC,” the publication noted.
DTC stands for Depository Trust Company, one of the largest securities in the world and is based in New York City. It was founded in 1973 and manages a staggering $35 trillion worth of securities.
With the DTC eligibility, investors can now trade in the trusts as they are available on over-the-counter (OTC) markets. The Bitcoin Cash Trust was assigned the ticker symbol BCHG while the Litecoin Trust is tradable under the LTCN symbol.
“Eligible Shares of Grayscale Bitcoin Cash Trust will be available to trade on OTC Markets under the symbol: BCHG and eligible Shares of Grayscale Litecoin Trust will be available to trade on OTC Markets under the symbol: LTCN,” Grayscale wrote. “This announcement follows FINRA’s verification that the required diligence to begin quoting BCHG and LTCN pursuant to Rule 15c2-11 under the Securities Exchange Act of 1934, as amended, has been completed.”
One of the advantages of trading BCHG and LTCN is that investors will be able to gain exposure to their underlying crypto assets without worrying about their storage and safekeeping. “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,” Grayscale noted.
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