Grayscale Clears Regulatory Hurdle in Push to Bring Bitcoin Cash and Litecoin Trusts to Over-the-Counter Markets

Grayscale Investments says the US Financial Industry Regulatory Authority (FINRA) has given the green light for its Bitcoin Cash Trust (BCHG) and Litecoin Trust (LTCN) to be quoted in over-the-counter (OTC) markets.

According to press release, Grayscale says their Bitcoin Cash Trust and Litecoin Trust products offer a convenient way for investors to get exposure on Bitcoin Cash (BCH) and Litecoin (LTC) without the hassle that comes with trading cryptocurrencies.

“The 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, avoiding the challenges of buying, storing, and safekeeping digital Bitcoin Cash or Litecoin directly.”

Grayscale says a select group of investors have been able to buy shares of the trusts since March of 2018 with a large number of shares currently outstanding.

“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.”

Those who own shares of the two trusts will be able to sell to public markets once they have been held for at least one year in accordance with Rule 144 of the Securities Act. In addition, shares of the two trusts cannot be publicly traded until they receive eligibility from the Depository Trust Company (DTC).

Once the trusts are officially listed, they will be the first publicly traded securities to be valued based on Bitcoin Cash (BCH) and Litecoin (LTC).

Grayscale Investments manages over $4.1 billion in crypto assets as of July 15th, 2020.

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