Cryptocurrency investment firm Grayscale Investments has secured regulatory approval from U.S. authorities to offer Bitcoin Cash (BCH) and Litecoin (LTC) trust funds to the public, following the same structure as its GBTC (Grayscale Bitcoin Trust) model.
Key Developments
- BCHG (Bitcoin Cash Trust) and LTCN (Litecoin Trust) approved by the Financial Industry Regulatory Authority (FINRA) for trading on OTC markets.
These mark Grayscale’s fifth and sixth publicly quoted investment products, joining:
- Bitcoin Trust (GBTC)
- Ethereum Trust (ETHE)
- Ethereum Classic Trust (ETCG)
- Digital Large Cap Fund (GDLC)
- Trading will commence after securing DTC eligibility (Depository Trust Company).
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Market Impact and Fund Adjustments
As of June 30, Grayscale’s assets under management (AUM) totaled $4 billion, with:
- Bitcoin: $3.5 billion
- Bitcoin Cash: $5.8 million
- Litecoin: $2 million
- Recent portfolio rebalancing reduced allocations for XRP, BCH, and LTC by 0.4%–1.4%, while increasing Bitcoin and Ethereum weightings.
Regulatory Confidence and Industry Outlook
Grayscale CEO Barry Silbert expressed optimism during a July 16 investor call, stating:
"For the first time, we’ve moved past the high-risk phase of a potential Bitcoin ban. Strong support from lawmakers and regulators ensures Bitcoin’s legitimacy—nobody can shut it down."
Despite Grayscale’s approvals, BCH and LTC prices showed muted reactions:
- Bitcoin Cash: $225.31
- Litecoin: $42.30 (ranked #8 by market cap, closely contested by BNB).
FAQs
1. What are BCHG and LTCN?
These are publicly traded trusts backed by Bitcoin Cash and Litecoin, respectively, providing indirect crypto exposure without direct asset ownership.
2. How does Grayscale’s approval affect the crypto market?
Regulatory greenlights bolster institutional adoption but may not immediately impact coin prices due to market dynamics.
3. Why did Grayscale reduce XRP/BCH/LTC allocations?
Strategic shifts reflect higher confidence in Bitcoin and Ethereum amid evolving market conditions.
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Risk Disclosure: Cryptocurrency investments are highly volatile. Capital loss is possible. Assess risks carefully.
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