Grayscale Pursues Litecoin ETF Listing Amid Regulatory Review
Grayscale Investments has filed an S-3/A registration statement with the SEC to rename its Grayscale Litecoin Trust as the Grayscale Litecoin Trust ETF. This move is part of a conversion process that began in early 2025 and aims to list shares on NYSE Arca.
The trust currently trades over-the-counter under the ticker LTCN, but without traditional ETF plumbing, there's been no reliable way for authorized participants to create or redeem shares based on underlying asset value. This has resulted in a significant premium or discount from the actual value of the Litecoin it holds.
As of June 30, 2026, the trust held approximately 24.25 million shares outstanding, with a net asset value of $82.28 million. That works out to roughly $3.39 per share on a NAV basis.
The SEC has extended its review timeline multiple times since Grayscale first submitted a 19b-4 filing in January 2025. The company has entered into a new prime brokerage agreement with Coinbase, which would facilitate the creation and redemption of shares once trading begins on NYSE Arca.
A conversion to an ETF would allow for creation and redemption baskets to be established, enabling market makers to arbitrage away significant premiums or discounts, keeping the trading price tethered to the value of the underlying Litecoin. Currently, Grayscale charges a 2.5% annual sponsor fee, which is notably higher than the fees seen on spot Bitcoin ETFs that launched in the US in early 2024.