The Financial Industry Regulatory Authority – or FINRA – has given the greenlight to new bitcoin cash and Litecoin funds being introduced by Grayscale, the crypto investment platform designed for institutional traders.
Grayscale Brings BCH and LTC to Institutional Traders
Known as the Bitcoin Cash Trust and the Litecoin Trust, Grayscale is working to lessen the gap between crypto and the rest of the financial world. The company already has both bitcoin and Ethereum-based trusts in its possession. This will bring its total count to four and give institutional traders a chance to purchase, sell and trade both BCH and LTC indirectly.
In a press release, the company explained:
There will be no trading volume in the shares’ public quotations until the respective shares are DTC eligible, which BCHG and LTCN are expected to receive soon. The trusts are not registered with the Securities and Exchange Commission and are not subject to disclosure or certain other requirements mandated by U.S. securities laws.
Grayscale is an interesting business venture to say the least in that it has reminded financial experts just how wrong they’ve been when it comes to the presence of institutional players in the crypto space. For many years, the crypto industry has been the subject of mass speculation. Allegedly, the space has experienced lagging or non-existent interest from institutional players, who tend to be more professional when it comes to trading than retailers.
The idea is that many institutional players have avoided crypto like the plague given the assets’ volatility and price vulnerability. These players do not want to take chances on tools that could potentially lose everything overnight. It’s true that one can easily make a lot of money with crypto, but it’s also true that there’s much to be lost as well, and many of these traders aren’t willing to take chances.
However, Grayscale has suggested that these thoughts may be a little out of balance. The company recently released its second-quarter figures for 2020, which show that more than $1 billion in bitcoin investments were made during the three-month period. This is the exact opposite of people who are “uninterested” or too concerned about the volatile nature of crypto to get involved.
The Institutional Presence Is About to Get Bigger
Now, with the addition of both bitcoin cash and Litecoin trusts to its growing list of offerings, Grayscale is likely to not only experience a heavy surge in customer behavior, but may also contribute further to the ever-adapting institutional presence in the field of cryptocurrency.
At the time of writing, the trusts in question are set to be open-ended, meaning that while they will take on the forms of traditional investment vehicles, they will expose users to the constantly changing prices of both BCH and LTC without putting them in danger. Users can purchase, sell and trade both digital assets without storing them or buying direct stakes in either.
