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Crypto Asset Manager Grayscale Announces Litecoin and Bitcoin Cash Trust Shares via OTC Markets

UTC by Bhushan Akolkar · 2 min read
Crypto Asset Manager Grayscale Announces Litecoin and Bitcoin Cash Trust Shares via OTC Markets
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Along with the institutional and accredited investors, other retail investors will also get access to Grayscale’s BCGG and LTCH shares for trading through OTC markets. Grayscale’s total assets under management have surged to over $5 billion by the end of July 2020.

On Monday, August 17, crypto-asset manager Grayscale Investments announced shares for its Bitcoin Cash Trust and Litecoin Trust. As per the announcement, shares of both trusts will be available for trading in the Over-the-Counter (OTC) markets with the ticker symbols BCGG (Bitcoin Cash) and LTCN (Litecoin).

After successfully completing its FINRA verification process, these two trusts will also be eligible to deposit at the Depository Trust Company (DTC). This is an attempt by Grayscale to expand its product offerings looking at the market demand. With the global economy under stress caused by the Coronavirus pandemic, institutions are looking at crypto markets as a potential hedge.

Until now, the shares of these trusts were only available to institutional and accredited investors through private placement offerings. However, these shares will also be now available for public trading via OTC markets. Speaking to The Block, Grayscale Managing Director Michael Sonnenshein said:

“Grayscale’s products have built-in security and storage, audited financials, and provide tax reporting. They’re titled securities and eligible for investment through tax-advantaged accounts. So, it’s exciting to give investors the opportunity to access Bitcoin Cash and Litecoin directly from their brokerage account or invest from their retirement account”.

Grayscale AUM Tops $5 Billion with More to Come with Litecoin and Bitcoin Cash

The year of 2020 has proved to be very crucial for Grayscale Investments with its total assets under management (AUM) crossing $5.1 billion by the ending of July 2020.

Amid the global economic uncertainty, Grayscale has been amassing massive amounts of Bitcoin. By the end of 2019, the company had $1.7 billion in AUM. During the first six months of 2020, the company added an additional $3.5 billion as per the SEC report.

The Grayscale Bitcoin Trust (GBTC) has seen a massive demand from institutional investors. Looking at the demand, Grayscale has also started launching its crypto-focused ads on popular news platforms like CNBC and FOX News. Grayscale CEO Barry Silbert also posted about the successful launch of its commercials. Besides, he also spoke that the fund has attracted an additional $217 million in investments.

With the new trusts, Grayscale is likely to attract more investments going ahead. Let’s wait to see the market response as the OTC markets resume the trading for BCGG and LTCN shares.

Altcoin News, Bitcoin News, Cryptocurrency news, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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