Bitcoin Cash, Litecoin See Gains as New Grayscale’s Funds Go Public
The price of both bitcoin cash (BCH) and litecoin (LTC) increased after major crypto asset manager Grayscale Investments said that two new trust funds backed by the cryptocurrencies have been approved for listing on public over-the-counter (OTC) markets in the US.
At the time of writing (09:34 UTC), BCH was up by about 2.4% since the announcement was made at 19:00 UTC time yesterday, while LTC was up by an even stronger 3.5% over the same time period. Looking at the past 24 hours as a whole, BCH was up by 1.7% while LTC was up by 2.8%, trading at a price of USD 229 and USD 43.6, respectively.
Although the 24-hour price gains for both coins were not very significant compared with bitcoin (BTC)’s 1.72% rise over the same period, LTC stood out with a strong surge in price shortly after the news about the new trust fund was released.
Bitcoin Cash, Litecoin See Gains as New Grayscale’s Funds Go Public 102
Litecoin (grey line) and bitcoin cash (orange line) both traded higher after news of a new investment trust was released at 15:00 ET/19:00 UTC Monday (green vertical line). Source: www.tradingview.com
Grayscale said that the new funds have been approved by the Financial Industry Regulatory Authority to trade under the ticker names BCHG and LTCN as “unregistered” securities on the OTC market. Both funds will also be available to “all investors with access to US securities,” the company added.
Grayscale further said that the funds are not registered with the US Securities and Exchange Commission, and that they are therefore not subject to certain disclosure and reporting requirements normally required under US securities laws.
The New York-based firm already offers several similar publicly quoted investment products backed by BTC, ethereum (ETH), ethereum classic (ETC), as well as a Digital Large Cap Fund made up of several major cryptoassets. The funds are said to be popular among many young stock investors, with for example Grayscale’s Bitcoin trust – GBTC – previously mentioned among the top five equities held by millennials, according to a report from 2019 by stock brokerage Charles Schwab.