The demand for Litecoin (LTC) among institutional investors has surged in the past week and demand for the crypto is also on the rise across Africa.
According to GrayScale Investments, the world’s largest bitcoin and crypto asset manager, the recently launched Litecoin Trust is now the company’s 6th largest product in value of assets under management.
The Litecoin Trust surge in premium seem to coincide with a recent tweet by LocalCryptos which indicates a surge in Litecoin demand in Africa on its P2P platform, apparently driven by the high cost of transactions on the bitcoin and ethereum networks.
In recent weeks, #Litecoin P2P trading volume surged by 350% in Latin America and 266% in Sub-Saharan Africa.
Until L2s become easy to use, high network fees on $ETH and $BTC are driving small peer-to-peer transactions to cheaper blockchains.
— LocalCryptos (@LocalCryptosEN) September 2, 2020
Having gone live on August 18, 2020, the Litecoin trust has traded wild premiums since launch with premiums reaching 1, 200% at one point before levelling to about 600% at the time of this writing.
Commenting on its current state of publicly-traded crypto products, the company said:
“The premiums show that the public demand for crypto exposure is high.” ~ GrayScale
As expected, high retail demand for LTC exposure generates lucrative returns for the early investors of the trust.
BitcoinKE has reached out to LocalCryptos to understand why this is happening and will update this post once a response is received.
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