The cryptocurrency market witnessed a notable uptick in momentum as Grayscale Investments, the world’s largest digital asset manager, announced the approval of its Bitcoin Cash (BCH) and Litecoin (LTC) trust shares by the U.S. Financial Industry Regulatory Authority (FINRA). This strategic move has reignited investor confidence, contributing to a broad rally across major digital assets—including Bitcoin (BTC), Ethereum (ETH), and the newly spotlighted BCH and LTC.
Grayscale Expands Institutional Reach with New Trust Offerings
Grayscale has officially launched the Bitcoin Cash Trust (ticker: BCHG) and Litecoin Trust (ticker: LTCN), now available for trading over-the-counter. This marks a historic milestone—the first time that regulated, publicly tradable securities backed by BCH and LTC have been introduced in the U.S. financial system.
Each share of the Grayscale Bitcoin Cash Trust represents ownership of 0.00943312 BCH, with 2,725,300 shares outstanding as of June 30, 2020. Similarly, each share of the Litecoin Trust corresponds to 0.09433120 LTC, with 509,400 shares in circulation. These trusts were initially offered through private placements to accredited investors and will become freely tradable in public markets after a one-year holding period under SEC Rule 144.
While the shares are not registered with the U.S. Securities and Exchange Commission and are exempt from certain disclosure requirements, their DTC (Depository Trust Company) eligibility is expected soon—paving the way for seamless integration into brokerage accounts and broader investor access.
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Market Impact: Renewed Momentum for Mainstream Cryptocurrencies
The announcement triggered an immediate reaction across digital asset markets. According to Huobi market data, Bitcoin surged past key resistance levels, briefly touching $9,358—a significant breakout from its previous consolidation range near $9,250. The move confirmed bullish momentum on the daily chart, surpassing both the 30-day moving average (MA30) and multiple psychological price barriers.
Although 4-hour volume failed to sustain the initial spike—leading to a slight pullback and increased deviation—the hourly chart indicates ongoing consolidation with room for further upside. This suggests that while short-term profit-taking may occur, underlying demand remains strong.
Ethereum Follows Suit Amid Growing Market Confidence
Ethereum mirrored Bitcoin’s upward trajectory, quickly breaking above the $240 resistance level. The rapid price response underscores heightened market sensitivity to macro-level developments such as Grayscale’s expansion. As institutional infrastructure strengthens, altcoins with established use cases and liquidity are increasingly viewed as viable components of diversified portfolios.
Derivatives Market Reflects Bullish Sentiment
Huobi’s derivatives data reveals a growing appetite for leveraged positions. Open interest across major contract platforms has risen steadily despite two months of sideways price action, indicating that capital continues to accumulate within the ecosystem. Additionally, funding rates on Huobi’s perpetual swaps have stabilized around 0.01%, reflecting sustained bullish sentiment without signs of excessive leverage.
Tether (USDT) remains stable on Huobi’s OTC market, trading at approximately 6.95 CNY per unit—unchanged from the previous day—highlighting continued confidence in stablecoin pegs amid market fluctuations.
Why Grayscale’s Move Matters
Grayscale’s influence extends beyond mere asset management. With over $4.1 billion in digital assets under management as of July 15, 2020, the firm serves as a critical bridge between traditional finance and the crypto economy. Its products enable institutional investors to gain exposure to cryptocurrencies without navigating custody challenges or regulatory uncertainty.
The introduction of BCHG and LTCN signals growing recognition of mid-cap cryptocurrencies within regulated financial frameworks. While BTC remains the dominant asset in Grayscale’s portfolio, the inclusion of BCH and LTC reflects diversification efforts and validates these networks as investable assets.
“Even though Grayscale’s direct market impact may be limited, its announcements act as catalysts—especially during periods of low volatility,” noted analysts at Huobi Research. “Today’s rally in BCH and LTC prices shows that the market still closely watches institutional moves.”
Core Keywords Driving Market Interest
To align with search intent and enhance discoverability, the following core keywords have been naturally integrated throughout this analysis:
- Grayscale
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Cryptocurrency Trusts
- BTC Price Analysis
- Institutional Adoption
- Digital Asset Investment
- Market Momentum
These terms reflect high-volume queries related to regulatory developments, price movements, and long-term investment trends in the crypto space.
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Frequently Asked Questions (FAQ)
Q: What are Grayscale’s BCHG and LTCN trusts?
A: They are investment vehicles that allow accredited and eventually retail investors to gain exposure to Bitcoin Cash and Litecoin through regulated, publicly quoted securities traded over-the-counter.
Q: Can anyone buy shares in Grayscale’s trusts?
A: Initially, shares are offered via private placement to accredited investors. After a one-year lock-up period under SEC Rule 144, they can be resold in public markets and traded freely through brokerage accounts.
Q: How does DTC eligibility affect these trusts?
A: DTC eligibility enables electronic settlement of securities, making it easier for brokers and investors to hold, transfer, and trade shares—significantly improving liquidity and accessibility.
Q: Why did BTC and ETH prices rise after the announcement?
A: Institutional developments like Grayscale’s expansion boost market sentiment. Even indirect news can trigger momentum trades, especially during low-volatility phases when investor attention is focused on catalysts.
Q: Are Grayscale trusts registered with the SEC?
A: No. The trusts are not registered under the Securities Act of 1933 and are exempt from certain disclosure obligations. Investors should conduct due diligence before participating.
Q: What does this mean for the future of crypto adoption?
A: It reinforces the trend of mainstream financial integration. Regulated products lower entry barriers for conservative investors and signal maturing infrastructure in the digital asset ecosystem.
Final Outlook: A Step Toward Broader Acceptance
While Grayscale’s latest launch may not single-handedly shift long-term market trends, it plays a pivotal role in normalizing cryptocurrency as an institutional-grade asset class. The approval of BCH and LTC trusts highlights increasing regulatory comfort with digital assets beyond Bitcoin—laying groundwork for future product innovation.
As market participants digest this development, technical indicators suggest continued upside potential for BTC and major altcoins—provided selling pressure remains contained. With derivatives activity rising and sentiment tilting bullish, the stage may be set for a broader rally if macro conditions remain supportive.
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