Investors can now purchase Bitcoin Cash (BCHG) and Litecoin (LTCN) shares from Grayscale’s publicly quoted Bitcoin Cash and Litecoin Trusts without considering custodial options, as Grayscale will handle the purchasing, selling, managing and storing of these shares for each investor, according to the firm’s official Medium announcement.
“With 81% of returning institutional investors in Grayscale’s private placements in the second quarter of 2020 diversifying beyond Grayscale Bitcoin Trust, investors have further opportunities to follow the institutional trend and diversify within the asset class,” said Grayscale.
As accredited investors now have access to 6 of Grayscale publicly-traded products in the cryptocurrency field, this allows them to diversify their portfolios within a safe, regulated space under Grayscale’s trusts without having to worry about regulatory compliance and other related risks. The disclaimer is that both above mentioned trusts are not registered under US Securities and Exchange Commission (SEC) and are thus not subject to laws governing securities in the country.
Accredited investors that can freely buy securities, “will be able to buy and sell freely-tradable shares of BCHG and LTCN through their investment accounts in the same manner as they would other unregistered securities” and can also sell their shares a year after their purchase in the public market as mandated by the Securities Act.
This comes after Grayscale reportedly received $217 million in investments after they placed an advertisement on TV to subtly push investors towards investing in digital assets, which proved to be immensely successful, even though the advertisement did not explicitly push Bitcoin as a preferred asset to ad viewers.
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