Litecoin’s excessive grayscale premium and what it means for the worth

One of the main headlines in recent weeks has been Bitcoin’s negative premium on grayscale. At the time of going to press, the premium per market share is still -3.06%, which is why it’s even more surprising that Litecoin is currently trading at a massive premium on the platform.

Currently, the Litecoin inventory per share is $ 16.26 while the market price per share for the same inventory is $ 249. The difference is a massive 1436% premium that investors would have to pay to achieve LTC exposure.

Grayscale Litecoin Agenda and Accumulation


Grayscale was aggressive towards Litecoin in February 2021. Confidence has built up massive and they reportedly bought over 170,000 LTC last month. It was roughly 80% of the total litcoin mined in February. In contrast, Bitcoin accumulated very little over the same period.

However, the high premium may be due to the restriction placed on retail investors to buy stocks directly from Grayscale Investments. Retail investors do not have access to NAV prices offered by accredited investors.

Additional data also showed that LTCN stocks remain a less lucrative investment vehicle for real traders.

Source: Market Watch

Market Watch data showed that trading volume for LTCN stock is 48% below the market average, indicating that limited retailers are exposing themselves to Litecoin through Grayscale’s Trust.

The survival of LTC as a legacy coin

Despite the above data, which presents a huge contradiction between high premium and limited interest in Litecoin stocks, the asset remains one of the assets that shares similarities with Bitcoin and has strong market foundations.

Litecoin is a lighter version of Bitcoin with a higher circulation limit of 84 million. The fact that it continues to be extremely responsive to Bitcoin’s price market explains why investors may have little exposure to the asset going forward.

Source: intotheblock

The active addresses speak for themselves, which have steadily improved over the past few months. For Litecoin, implementing the MimbleWimble privacy protocol is the last straw to stay relevant. David Burkett, a developer, recently stated that the code should be finalized on March 15th, and this could eventually spark renewed interest in Litecoin.

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