Grayscale to Convert $82.3 Million Litecoin Trust into ETF

On the 11th, Grayscale, a U.S. asset management company, modified its filing to convert its Litecoin (LTC) trust into an ETF.

The plan is to list on the NYSE Arca and change the name to Grayscale Litecoin Trust ETF, but the necessary regulatory changes for listing have not yet received approval from the U.S. Securities and Exchange Commission since the application in January 2025. The trust is currently traded on OTCQX, with a value that was 8% below its net asset value as of the 9th.

$82.3 Million Trust to NYSE Arca

According to the amended filing submitted to the SEC, the ticker after listing will be LTCN, and the trust managing the cryptocurrency assets will be Grayscale Investments Sponsors based in Stamford, Connecticut. The filing is an amendment to Form S-3, with registration number 333-290130.

As of June 30, based on U.S. accounting standards, the net asset value of the trust was $82,306,589, or $3.39 per share. The closing price on OTCQX on September 9 was $4.01, remaining 8% below the net asset value. The discount as of June 30 was 7%.

Setting up and redeeming in physical assets requires separate regulatory approval, and it is not indicated whether this will be obtained in the filing. The amount of Litecoin needed to create a basket of 10,000 shares is 811.9120 LTC as of June 30.

Over 1 Year and 7 Months Waiting for Approval of Listing Application

On January 24, 2025, NYSE Arca applied to the SEC for a rule change to list the shares of the Litecoin trust. At the time of the filing, this application had not been approved, and the trust has not provided any outlook on the timing or likelihood of approval. The filing will take effect once approval is granted or the general rules for listing standards are established.

Grayscale is an asset management company that has expanded the framework of Bitcoin ETFs to altcoins. The custody of the Litecoin trust is managed by Coinbase Custody Trust Company, with Coinbase as the prime broker, and Bank of New York Mellon handling administrative management and name transfers.

The indices used for price calculation include foreign cryptocurrency exchanges such as Binance, Kraken, OKX, and Gemini. The index price has fluctuated between $40.04 and $275.50 over the past five years since July 2021, with an average of $90.86. In the last 12 months, it has remained within the range of $40.04 to $130.23.