Grayscale Pursues NYSE Arca Spot ETF Conversion for $97.6M Litecoin (LTC) Trust
Key Takeaways
- •Grayscale is seeking to convert its Litecoin Trust, which holds about $97.6 million in LTC, into a spot ETF to be listed on NYSE Arca.
- •An updated application submitted in September replaced Grayscale's earlier filing and now serves as the basis for the SEC's review of the conversion.
- •Grayscale previously converted its bitcoin trust into a spot ETF in January 2024, followed by its ethereum trust later the same year.
- •An approved ETF structure would allow the trust's shares to trade like stocks on a national exchange during regular market hours while the fund holds Litecoin, a cryptocurrency launched in 2011 as a fork of Bitcoin.
- •The conversion's outcome depends on subsequent SEC regulatory decisions on the updated filing.
Grayscale is moving forward with its plan to convert the Grayscale Litecoin Trust, an investment vehicle holding roughly $97.6 million in Litecoin (LTC), into a full spot exchange-traded fund (ETF) listed on NYSE Arca.
The asset manager advanced the effort with an updated application filed with regulators in September. The September submission replaced the firm's earlier paperwork and now forms the basis of the U.S. Securities and Exchange Commission's (SEC) review of the proposed conversion.
The move follows a route Grayscale has taken before: the firm's bitcoin trust was converted into a spot bitcoin ETF in January 2024, and its ethereum trust made the same shift later that year. An ETF structure would allow the Litecoin Trust's shares to trade on a national securities exchange like stocks during regular market hours, while the fund itself holds LTC, a cryptocurrency launched in 2011 as a fork of Bitcoin and one of the longest-running digital assets.
For now, the process rests with the SEC's review of the updated filing. Subsequent regulatory decisions on the proposal will determine whether NYSE Arca can list the converted fund.
This content was first published on COINOTAG: https://en.coinotag.com/grayscale-litecoin-trust-spot-etf-conversion-nyse-arca
