By
Elsa Saikkonen
Grayscale Investments has announced that its Bitcoin Cash Trust and Litecoin Trust are now verified by the Financial Industry Regulatory Authority and are DTC-eligible, meaning that eligible investors may gain exposure to the major altcoins without having to directly purchase and store them.
Shares of the Bitcoin Cash Trust and Litecoin Trust will trade over-the-counter via the tickers BCGG and LTCN, respectively.
The products are not entirely new, however. Shares in both trusts were previously available exclusively to institutional and accredited investors via private placement offerings. Now, their being publicly available brings the total amount of such products from Grayscale up to six — joining the likes of Grayscale’s Bitcoin Trust (OTCQX: GBTC), Ethereum Trust (OTCQX: ETHE), Ethereum Classic Trust (OTCQX: ETCG) and Digital Large Cap Fund (OTCQX: GDLC).
It is worth noting that both Grayscale’s Bitcoin Cash Trust and Litecoin Trust are not registered with the United States Securities and Exchange Commission and are, therefore, not subject to certain requirements and disclosures required under U.S. securities law.
Grayscale is a staple in the Bitcoin and cryptocurrency world. The New York-based Digital Currency Group-owned company launched in 2013 and has long provided crypto offerings to traditional hedge funds, pensions, and endowments.
In 2019, Grayscale raised $607 million — $190 of which came in Q4 of last year, alone — signaling a proverbial stampede of institutional interest into the cryptocurrency space.
Earlier this year, it was reported that Grayscale, by itself, holds approximately 1.7 percent of the entire supply of BTC — though that number may be even higher now.
Furthermore, in Q1 2020, Grayscale’s products saw double the investment that they witnessed in the last two quarters of 2019, combined.
All things considered, it stands to reason that Grayscale will continue to provide cryptocurrency-related offerings to institutional clients while devouring more and more of the BTC supply.
Image source: Pixabay
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