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- Litecoin’s price is currently $ 86.76, but some investors are paying a lot more to buy the digital asset.
- The Grayscale Litecoin Trust is trading at a premium of 3.193% over the NAV.
Grayscale is known for its massive Bitcoin investments, but the trust fund has also bought Ethereum, Litecoin and other digital currencies in the past. Institutional investors are currently paying a lot more for LTCN stock than Litecoin’s real value, which is around $ 86.
The Grayscale Litecoin Trust Premium to NAV chart shows 3.193%, which means that investors are actually buying LTC at an implied price of $ 2,750.
Can Litecoin’s price benefit from the huge premium institutional investors they are currently paying?
Over the past four months, the price of LTC and the Grayscale Litecoin Trust Premium to the NAV have been directly correlated. The latest peak occurred around early November. Litecoin’s price has had a 72% increase since then.
The correlation between LTCN stock and Litecoin’s price does not necessarily seem to benefit the digital asset. On August 31, LTCN stock was worth $ 1.95 and rose to $ 42.15 on September 1. On the other hand, Litecoin’s price dropped from $ 64 to a low of $ 45 three days later, representing a 29% drop.
LTC / USD daily chart
However, from October 20 until the current date, the correlation appears to be positive. Despite this correlation, Litecoin’s price is already on par with LTCN stock, which would suggest it won’t necessarily continue to rise.
LTC / USD weekly chart
On the weekly chart, Litecoin’s price confirmed an uptrend after setting a clear higher low at $ 41.64, versus $ 25, and a higher high at $ 90.98 from its last high at $ 69. The significant resistance level at $ 80 was also broken on November 16th. Litecoin appears to be aiming for $ 145 now.
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