Beware LTCN and BCHG Premiums Upon Launch

Both LTCN (Litecoin trust) and BCHG (Bitcoin Cash trust) launched with absurd premiums. Anyone who has been in the crypto trust space for long enough knows that like with ETCG and ETHE, you’ll want to be very wary of these until the premiums come down.

A 50% premium or less is ideal, but LTCN and BCHG were trading at 10x plus their value.

See the actual values of LTCN and BCHG below:

https://grayscale.co/bitcoin-cash-trust/

BCHG: Each BCHG is worth about 1/100th of a BCH. BCH is worth $290. BCHG is worth $2.75. BCHG trades at $25. So BCHG was trading like Bitcoin Cash is worth $2,750 dollars. That is a premium of about 10x.

https://grayscale.co/litecoin-trust/

LTCN: Each LTCN is worth about 1/10th of an LTC. LTC is worth $60. LTCN is worth $5.85. LTCN trades at $72. So LTCN was trading like Litecoin is worth $720 dollars. That is a premium of over 10x.

To get a sense of what could happen next, look at the ETHE and ETCG charts (hint, you maybe get a bit more upside and then you’ll likely lose most of the premium).

NOTE: The above data was for August 20th, 2020. The exact figures will change, you can ALWAYS check the Greyscale website to see the fair value of these trusts.