Institutions are Buying Litecoin at over $2,500 via Grayscale
The demand for Litecoin among institutions is at an unprecedented level if the premium paid at Grayscale Investment leads. An Arcane Researcher revealed a 3,193% premium existed between the secondary market of LTC and those offered by the regulated ramp on Nov 23 meaning investors were buying LTC at an implied price of $2,750.
Boosted by PayPal’s support, Litecoin together with supported coins--BTC, ETH, and BCH, rallied. However, it was the sharp increment of LTC prices flipping BCH’s market cap and investors flowing to fill their bags with Grayscale Litecoin Trust shares that drew interest. The huge premium and their facilitating of regulated companies to have exposure in crypto meant interested firms had to pay huge premiums point to underlying demand for Litecoin. Their plans to add privacy features, their low trading fees, and higher throughput, LTC-BTC atomic swapping support, and the feature by PayPal is a vote of confidence and a possible foundation for a rally above $100.
Impact on the LTC Price:
Bullish. Institutional demand for a coin that critics say lacks utility, only leeching Bitcoin’s reputation, is bullish. That they are willing to pay a premium with more investors than BCH (as Grayscale’s data show), is a net positive for the coin.
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