Grayscale Litecoin Trust Overpayment Exceeds 750% Following Secondary Listing Early investors in Grayscale's Litecoin and Bitcoin Cash Trusts have had the opportunity to significantly increase their holdings since their securities went public this week.

Overpayment of Grayscale Litecoin-Trust Shares Exceeds 750% After Listing On The Secondary Market

Early investors in Grayscale's Litecoin and Bitcoin Cash trusts have had the opportunity to significantly increase their holdings since their securities went public this week..

As analysts say Arcane Research, the level of overpayment on Litecoin-trust shares relative to the spot price of the cryptocurrency reached 753%, and for the Bitcoin Cash trust this value was 351%.



The trusts were launched in April 2018, but until this week their investors had no opportunity to resell shares in the secondary market. After the recent listing, only those who invested a year ago have been able to do this - this is the minimum requirement to hold securities before resale. IN present time assets in trusts Bitcoin Cash and Litecoin are $ 28.7 million and $ 19.2 million, respectively.

According to analysts at Arcane Research, the main factor driving retail investor interest in securities Grayscale trusts in the secondary market, is that they can invest in cryptocurrencies money from their retirement accounts. In addition, some may simply not be aware of the overpayment..

Overpayments on securities of other publicly available trusts also persist, but in recent years they have significantly decreased. An Ethereum trust, for example, is trading at 93% overpayment, up from 804% in June. The overpayment in a Bitcoin trust is 23%. Arcane Research says this fact reflects the interest in cryptocurrencies in public markets and the desire of their participants to have access to more such tools, including ETFs..

Grayscale Managing Director Michael Sonnenschein said in an interview last month: "There are indeed ways to work with regulators within the current regulatory framework, but they are not ready to approve ETFs yet.".

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