Grayscale files to convert Litecoin Trust into spot ETF

Grayscale Investments has filed an amendment with the U.S. Securities and Exchange Commission to convert its Litecoin Trust (LTCN) into a spot exchange-traded fund (ETF). The proposal includes renaming the vehicle to the ‘Grayscale Litecoin Trust ETF’ while maintaining the LTCN ticker symbol.

If approved, the shares would move from over-the-counter trading to a listing on NYSE Arca. This transition would allow for the creation and redemption of shares in baskets, a move intended to improve liquidity and reduce historical price discrepancies between the trust and its underlying Litecoin holdings.

The conversion remains subject to regulatory approval, specifically the effectiveness of the registration statement and the SEC’s approval of NYSE Arca’s application to list and trade the shares.