The world’s largest digital currency asset manager, Grayscale Investments, has announced today its Bitcoin Cash Trust and Litecoin Trust have gained eligibility to trade on the OTC markets.
According to the announcement, both Trusts will be trading in the OTC markets under the BCHG and LTCN symbols, respectively. Following FINRA’s verification of the new development, the requirements to get started by stating the BCHG and LTCN under the Securities Exchange Act of 1934 is said to have been completed.
Basically, the Trusts are sponsored by Grayscale and are targeted at attracting wider exposure to the price movement of each Trust’s underlying asset as efforts to avoid the challenges customers get to face when buying, storing, and safekeeping digital Bitcoin Cash or Litecoin directly. The help of an investment train tends to curb these challenges.
By means of the latest development, unrestricted trades of the shares of BCHG and LTCN will be available to all investors with access to U.S. securities. Hence, they will be able to buy and sell the shares through their investment accounts in no different way like they would trade other unregistered securities.
The Trusts are not subject to disclosures and some other requirements executed by U.S. securities laws as they are not yet registered with the Securities and Exchange Commission (SEC).
Furthermore, institutional and individual accredited investors with access to Grayscale’s respective periodic and ongoing private placements can reach Grayscale’s investment products.
Meanwhile, BCHG and LTCN are Grayscale’s fifth and sixth publicly-quoted investment products. As such, investors will be able to find current financial disclosure and Real-Time Level 2 quotes for Shares on BCHG and LTCN once the trading commences.
Stating the objectives of the Trusts, the company said:
The investment objective of each Trust is for its Shares to reflect the value of assets held by such Trust, less such Trust’s expenses, and other liabilities. Because each Trust does not currently operate a redemption program, there can be no assurance that the value of the Shares will approximate the value of the assets held by such Trust, less such Trust’s expenses and other liabilities, and the Shares may trade at a substantial premium over, or a substantial discount too, such value and such Trust may be unable to meet its investment objective.