Grayscale Investments, a New York company offering cryptocurrencies in the form of shares, announced on Monday that regulators have approved the sale of two new cryptocurrencies to the public.
Due to Coinmarketcap: One of the newly listed stocks will represent the stock of Litecoin, which is one of the oldest cryptocurrencies second only to Bitcoin, and the other is Bitcoin Cash, which was launched in 2017 Of the controversial Bitcoin spin-off. In terms of market value, they are the eighth and fifth largest cryptocurrencies, respectively.
The new shares will be traded under the symbols LTCN and BCHG and will be open to the public in the next two to four weeks.
Although cryptocurrency enthusiasts usually buy Litecoin and other digital currencies directly on dedicated cryptocurrency exchanges such as Coinbase or Binance, Grayscale has discovered a niche form of share sale products.
Grayscale encryption products are equal to shares in the trust holding the underlying assets. Although the trading price of Grayscale shares is higher than the asset price, they are still favored by some institutional investors who are worried about investing directly in Bitcoin and other encrypted assets.
At the same time, gray-scale stocks (especially Bitcoin) have found a niche market with millennial investors on apps like Robinhood. Indeed, Charles Schwab reported in December that Bitcoin stocks traded under the GBTC symbol are among the top five stocks held by millennials, higher than stocks such as Netflix.
“Grayscale has established investment products that operate within the existing regulatory framework. With the approval of two other products for public trading, we are expanding investors’ access to digital currency asset classes,” Grayscale’s managing director Michael Sonnenshein Said.
The new Litecoin and Bitcoin Cash stocks bring the total number of cryptocurrencies available to the public to six. Other stocks are also packaged by Grayscale, representing Bitcoin, Ethereum, Ethereum Classic, and a mix of different currencies.
In a broader sense, Grayscale has developed a profitable practice of selling its trust shares to qualified investors. These investors were initially prohibited from reselling these stocks to the public, but once the regulators approve them, they usually make substantial profits.
Grayscale stocks are traded on the OTCQX market without the need for securities registration with the SEC. On the contrary, the industry regulator FINRA is responsible for regulating such products.