Litecoin News Today – Grayscale Investments Approves Public Quotation for Shares of Litecoin Trust – July 21st, 2020

  • Grayscale Investments Approves public quotations for shares of Grayscale Litecoin Trust
  • The Trusts, which are sponsored by Grayscale is open-ended
  • They are designed to facilitate exposure to the Trusts’ underlying assets price movements

Litecoin news today – According to reports, the world’s largest digital currency asset manager, Grayscale Investments has announced the approval of Shares of Grayscale Litecoin Trust and Grayscale Bitcoin Cash Trust. The approval was gotten from the FINRA for both offerings to serve as public quotations under the symbols: LTCN and BCHG on the OTC Markets. This marks the launch of the first securities to be publicly-quoted in the United States deriving value from Litecoin and Bitcoin Cash. Both Trusts are open-ended and sponsored by Grayscale. They are designed to allow exposure to the price action of the Trusts’ underlying assets via a traditional investment vehicle. They remove the challenge of buying, storing, and safely keeping digital assets (BCH or LTC) directly.

Litecoin (LTC) Price Today – LTC / USD

NamePrice
litecoin
Litecoin
$57.39

Litecoin LTC News Today – The Trusts Offer Secondary Markets for Private Placements

The Trusts have provided a private placement to all accredited investors since 2018. As of June 30 this year, there were more than 2,725,300 Shares of Grayscale Bitcoin Cash Trust. Each share represents the ownership of about 0.00943312 BCH. Since June 30, 2020, there were over 509,400 Shares of Grayscale Litecoin Trust. Each share represents the ownership of 0.09433120 LTC. The shares that have been created through these Trusts’ private placements are eligible to sell in the public market following a statutory year holding period (based on Rule 144 in the Securities Act). Additionally, there won’t be any trading volume in the Shares’ public quotations. Not until the Shares are eligible for DTC (BCHG and LTCN are expected to get this eligibility soon). Finally, investors will have the opportunity to trade (buy and sell BCHG and LTCN shares) via their investment accounts just as they would when it comes to other unregistered securities.

Litecoin News – What are the Investment Objectives for the Trusts?

According to the announcement, the investment objective of the Trusts is for the Shares (calculated by assets per share) to show the real value of the digital asset held by the Trust. This can be determined by referencing the appropriate TradeBlock index less than the expenses and other liabilities incurred by the Trusts. TradeBlock’s BCX Index serves as the reference for Grayscale Bitcoin Cash Trust. Meanwhile, LTX Index by TradeBlock’s references’ Grayscale Litecoin Trust. Both Trusts won’t generate any form of income neither will they regularly distribute Litecoin and Bitcoin Cash to pay for its current expenses. Hence, the total sum of Litecoin and Bitcoin Cash represented by each Share decreases gradually as time passes. The Trusts aren’t registered with the United States SEC (Securities and Exchange Commission). Neither are they subject to disclosure alongside some unique requirements that have been mandated by the securities laws of the U.S.

Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.

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