Grayscale Litecoin ETF Now Seeking Approval as ETF Race Intensifies

Grayscale Litecoin ETF Now Seeking Approval as ETF Race Intensifies

Key Points:

  • Grayscale and Coinshares have filed with the SEC to launch Litecoin ETFs, following Canary Capital’s earlier proposal.
  • Grayscale aims to convert its Litecoin Trust into Grayscale Litecoin ETF, with Coinbase Custody as the custodian and BNY Mellon as the administrator.

Asset managers Grayscale and Coinshares have filed with the US Securities and Exchange Commission for Litecoin single-asset exchange-traded funds, making them the second and third entities to join the race for offering Litecoin-focused ETFs, joining Canary Capital, which did so sometime last year.

Read more: Canary Litecoin ETF Seeks Approval With New Applications 

Grayscale Litecoin ETF Officially Joins the Fray

Grayscale filed the 19b-4 form to convert its existing Grayscale Litecoin Trust into Grayscale Litecoin ETF. Coinshares has filed an S-1 form with the SEC to introduce its version of the Litecoin ETF. Both filings signal a growing interest in cryptocurrency ETFs amid rising institutional demand.

The Grayscale Litecoin ETF is a Delaware statutory trust organized under an agreement between Grayscale, the sponsor, and Delaware Trust Company, the trustee.

The assets will be held safely by Coinbase Custody Trust Company, acting as custodian. BNY Mellon Asset Servicing will act as administrator and transfer agent of the fund, while distribution and marketing will be handled by Foreside Fund Services.

Regulatory Landscape Shifts to Crypto Acceptance

The recent wave of cryptocurrency ETF proposals also coincides with changes in the U.S. political landscape. The second term of President Donald Trump brought in a more crypto-friendly approach to regulations.

This has further been cemented by the appointment of crypto-friendly Paul Atkins, the former regulator at the SEC, as the new chairman and replaced Gary Gensler. A set of executive orders signed by the president to support innovation in the sector has also driven optimism among the crypto community.

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