Grayscale’s
Bitcoin Cash and Litecoin Funds Are Trading at Over 1,000% Premiums
Grayscale’s Bitcoin Cash and
Litecoin funds are currently trading at premiums of over 1,000% compared to
the value of their underlying assets.
According to market performance
data, Grayscale’s bitcoin Cash Trust, BCHG,is trading at $37.9 per share,
while its underlying bitcoin cash (BCH) holdings are worth around $3.19.
That’s a premium of over 1,100%.
Similarly, Grayscale’s Litecoin
Trust (LTCN) is trading at over $500 per share, while its underlying LTC
holdings per share are worth little over $8, which means the trust is trading
at a premium of well over 5,000%.
These products are traded on
over-the-counter markets and the premium creates an opportunity for players
to capture the spread between the price and the net asset value. Grayscale’s
most popular products, GBTC and ETHE, also often trade at a premium.
