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Grayscale's BCH and LTC Trusts Approved by FINRA

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Written by   41
3 months ago

In a previous article posted in Publish0x, I analyzed the importance of Grayscale Investments as an investment vehicle for institutional exposure in cryptocurrencies as Bitcoin and Ethereum and Ethereum Classic. Yesterday, Grayscale announced that FINRA approved the public quotation of two more Grayscale products, the Bitcoin Cash Trust (BCHG) and the Litecoin Trust (LTCN). The Trusts offer accredited investors exposure to cryptocurrencies Bitcoin Cash and Litecoin in the form of shares. 

The latest Grayscale approved securities offer to investors:

  • 2,725,300 shares from the Bitcoin Cash Trust each one representing 0.00943312 Bitcoin Cash.

  • 509,400 shares of Litecoin Trust with each share representing 0.09433120 Litecoin.

All shares are limited to 12 months holding period before becoming available for liquidation according to the Securities Exchange Act of 1934.

The anual fee paid by investors is 2,5%.

All Grayscale products are indexed on TradeBlock in real-time. Bitcoin Cash Trust ticker on this index is BCX, while Litecoin Trust is LTX.

BCX real-time price - TradeBlock

Both Trusts are registered with the SEC but are not approved as a SEC reporting security under section 12g of the  Securities Exchange Act of 1934. The Bitcoin Investment Trust became a fund reporting to the SEC in January 2020, allowing investors a limitation of six months freeze period instead of twelve for liquidation purposes.

Grayscale in a recent filing to the SEC reported:

"After a period of slow growth, Grayscale Bitcoin Cash Trust and Grayscale Litecoin Trust have seen a marked uptick in investor interest. The two trusts combined have now reached over $20 million in inflows since inception."

Source: SEC

The recent approval by FINRA means that the Bitcoin Cash Trust shares will be available for OTC trading to accredited investors once the shares are deemed eligible by the DTC (Depository Trust Company) which is expected soon. The Bitcoin Investment Trust and the Ethereum Trust are both traded on OTCQX exchange, which is an over-the-counter exchange for various stocks outside of the US, operated by OTC Markets Group Inc.

Grayscale Investments offers these Trusts as a method of investing without having to hold the coins. Grayscale is buying the digital coins and is responsible to store them securely while providing exposure to institutions and accredited investors trading shares of the Trusts.

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First published on - Reposted on Publish0x & Uptrennd

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Written by   41
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