BlockFi Litecoin Trust | BlockFi Litecoin Trust

Background on Litecoin:

Litecoin is an alternative cryptocurrency, or altcoin, created in October 2011. Similar to Bitcoin, it is based on a decentralized, open-source global payment network.
Why a Trust Product:

BlockFi believes that investors will be able to more effectively implement strategic and tactical asset allocation strategies that use litecoin by using the shares instead of directly purchasing and holding litecoin. For many investors, transaction costs related to the shares will be lower than those associated with the direct purchase, storage and safekeeping of litecoin.
Safekeeping System:

The Trust’s appointed custodian is Coinbase Custody Trust Company, LLC (“Coinbase Custody”). Coinbase Custody stores all of the Trust’s digital assets in totally offline, cold storage. Security includes, in addition to secure vaults, physical, cyber, and operational controls with multilevel safeguards. The Trust’s assets will not be lent out or used as collateral for borrowing or derivatives.

Turnkey product format
Transparent
Cost efficient
Safekeeping system

Overview

Investor Qualiﬁcations
Accredited Investor³
Sponsor
BlockFi Management LLC
Index
The Coin Metrics Bletchley Index (CMBI) Litecoin
Transfer Agent
American Stock Transfer & Trust Company
Custodian
Coinbase Custody Trust Company, LLC
Sponsor's Fee
1.75% per annum accrued daily
Minimum Investment
Litecoin equivalent of $50,000
Creation Type and Frequency
Trust will issue shares in exchange for Bitcoin directly to investors from time to time in baskets
Redemption Frequency
Redemptions are currently unavailable
IRA Eligible
IRA eligible from select providers
Taxation
Structured as grantor trust for tax purpose
Non-U.S. Investors
Prospective investors who are not located in the U.S. must consult the section titled “Offering Legends” in the PPM for a listing of restrictions on sales in certain jurisdictions.
Secondary Market Trading
Currently none. If a secondary market develops, shares are eligible to become unrestricted and resold in the secondary market following a minimum one-year holding period.*

Performance
Value
As of

Litecoin Holdings⁴
N/A
N/A
Litecoin Holdings per Share⁵
N/A
N/A
Shares Outstanding
N/A
N/A
Litecoin Index Price⁶
N/A
N/A
Market Price⁷
N/A
N/A

* The Sponsor is seeking the creation of a secondary market for the Trust’s shares, but there can be no assurances that such a market will develop. Shares purchased from the Trust are restricted securities subject to significant transfer restrictions. Among other things, transfers of such shares require the Sponsor’s approval and are subject to a minimum one-year holding period (or, once the Trust’s shares have been registered under the Securities Exchange Act for at least 90 days, a minimum six-month holding period). The Sponsor is currently seeking to so register the Trust’s shares, but there can be no assurances that such registration will be achieved.

Investors should carefully read the Trust's private placement memorandum before making an investment.

¹Coin Metrics Bletchley Index (CMBI) Litecoin Disclaimer. CERTAIN PRODUCTS AND SERVICES OF BLOCKFI MANAGEMENT LLC AND ITS AFFILIATES (“BLOCKFI GROUP”) USE INDEX AND OTHER DATA FROM COIN METRICS, INC. UNDER LICENSE AS A SOURCE OF INFORMATION. COIN METRICS, INC. HAS NO OTHER CONNECTION TO ANY BLOCKFI GROUP PRODUCT OR SERVICE AND DOES NOT SPONSOR, ENDORSE, RECOMMEND, MANAGE OR PROMOTE ANY BLOCKFI GROUP PRODUCT OR SERVICE. COIN METRICS, INC. HAS NO OBLIGATION OR LIABILITY IN CONNECTION WITH THE BLOCKFI GROUP PRODUCTS OR SERVICE. BLOCKFI IS NOT RESPONSIBLE FOR THE CALCULATION OF THE INDEX.

²Because the trust does not currently operate a redemption program, there can be no assurance that the value of the trust’s shares will reflect the value of the Litecoin held by the trust, minus the trust’s fees and expenses, and the shares of the trust, if traded on any secondary market, may trade at a substantial premium over, or a substantial discount to, the value of the Litecoin held by the trust, minus the trust’s fees and expenses. There is currently no secondary market for shares of the trust and there can be no assurances that one will develop. The trust may also be unable to meet its investment objective.

³The shares of the trust are offered in private placements pursuant to the exemption from registration provided by Rule 506(c) under Regulation D of the Securities Act of 1933 (the “Securities Act”) and is only available to “accredited investors,” as such term is defined under Regulation D of the Securities Act. As a result, the shares of the trust are restricted and subject to significant limitations on transfers and resales.

⁴The aggregate value, expressed in U.S. dollars, of the Trust's assets (other than U.S. dollars or other fiat currency), less its liabilities (which include estimated accrued but unpaid fees and expenses).

⁵Litecoin Holdings divided by the number of Shares Outstanding.

⁶Source: Coin Metrics Bletchley Index Litecoin (CMBILTC) at its 4:00 p.m. close level.

⁷There is currently no secondary market for the shares and no there is no guarantee that a secondary market will develop.

Investors should carefully consider the investment objectives and risks as well as fees and expenses of the trust before investing. More information, including calculation methodologies for “Litecoin Holdings” and “Litecoin Holdings per Share,” can be found in the trust’s private placement memorandum (which can be accessed here). Investors should read the trust’s private placement memorandum carefully before making an investment. Investments in the trust are speculative investments that involve high degrees of risk, including a partial or total loss of invested funds. An investment in the trust is not suitable for any investor that cannot afford loss of the entire investment. The shares of the trust are intended to reflect the price of the Litecoin held by the trust (based on Litecoin per share), minus the trust’s fees and expenses. The shares of the trust are not registered under the Securities Act, the Securities Exchange Act of 1934, the Investment Company Act of 1940, or any state or other securities laws. Investors should consider an investment in the trust’s shares to be an illiquid investment and should invest only if prepared to hold the shares indefinitely. This information, which should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular, is strictly for illustrative, educational, or informational purposes and is subject to change

BlockFi Lending LLC NMLS ID#1737520 | NMLS Consumer Access
BlockFi Trading LLC NMLS ID#1873137 | NMLS Consumer Access

Disclaimer: Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.

BlockFi Lending LLC NMLS ID#1737520 | NMLS Consumer Access
BlockFi Trading LLC NMLS ID#1873737 | NMLS Consumer Access

Background on Litecoin:

Why a Trust Product:

Safekeeping System:

Overview