LTCN and BCHG Premiums Are Both About 10x Above NAV

Litecoin and Bitcoin Cash trusts, LTCN and BCHG respectively, are both trading at about 10x premiums. Meaning they are trading for about 10x what they are worth.

This is a sort of bad timing + ongoing market wackiness situation where the recent PayPal news (bullish for LTC and BCH) as coincided with Greyscale whale shinanigans to produce a perfect storm. Storms are dangerous, and this is a dangerous situation for the uninitiated.

Here is the deal, Greyscale trusts tend to trade at absurd premiums when they launch, and then tend to settle back down over time. Sometimes they trade at huge premiums again later in life, but especially on launch those early investors tend get away with murder.

To avoid the bloodshed of the drop back down to NAV, it is smart to be cautious of these instruments.

To better understand how high the current premiums are, see the greyscale website.

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. So BCHG at $20.90 means it is trading like BCH Is worth $2,090. Yikes!

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

LTCN: Each LTCN is worth about 1/10th of an LTC. So LTCN trading at $64.25 means it is trading like LTC is worth $640.25… oof!

TIP: Tell yourself whatever you want, but these are destined to come back down if the underlying asset doesn’t go way up. Want proof? Just look at ETCG, ETHE, and GBTC’s historic charts. GBTC, ETCG, and ETHE are all trading at small premiums. This is pretty normal, and what one would expect LTCN and BCHG to trade at in the future.