Premium rates for Bitcoin Cash and Litecoin on Grayscale

LTCN and BCHG shares, which started trading recently, are traded with premium rates exceeding 1000 percent according to the underlying asset.

Grayscale, one of the largest investment companies in the cryptocurrency space, recently opened its Bitcoin Cash and Litecoin funds to the public.

1120 percent premium in Litecoin Trust

A few days after Grayscale’s BTC and LTC products began trading publicly, both are being traded at stunning premium rates. Currently, Litecoin Trust’s (LTCN) premium rate over the price of the underlying asset is over 1120 percent. Each Litecoin Trust share corresponds to 0.094 LTC. At the current Litecoin price, this is equivalent to $ 5.9. Whereas, LTCN is currently trading at $ 72.

The high demand from individual investors brought huge returns to the fund’s early investors.

Both Grayscale products were launched in April 2018, and since then, there have been $ 29 million for the Bitcoin Cash Trust and $ 19.5 million for the Litecoin Trust. The company made both funds publicly tradable on Monday. This means they can be traded like shares. Thus, buyers invest in Litecoin and Bitcoin Cash without the hassle of buying from a crypto currency exchange and keeping these money safely.

Cryptocurrency research firm Arcane Research attributes these extraordinary premium rates to the fact that trading with these funds is the only way American individual investors can invest in cryptocurrencies through their 401K (private pension system).

Bitcoin Cash Trust finds buyers with an 800 percent premium
On the other hand, Bitcoin Cash Trust (BCHG) closed the day at $ 25. However, considering the price of the underlying BCH, each BCHG share is equal to $ 2.8. This shows that BCHG has found buyers with a premium of 800 percent.