Grayscale Pushes for NYSE Arca Listing of Litecoin Trust ETF

Grayscale has filed an amendment to move its Litecoin Trust (LTCN) closer to an ETF structure. The proposed change would rename the trust Grayscale Litecoin Trust ETF while keeping the LTCN ticker.

The filing, submitted on September 11th, aims to increase ease of use for investors seeking exposure to Litecoin [LTC] via a national exchange. If approved, the conversion will provide the opportunity to create new shares and redeem existing ones in baskets, reducing price gaps between LTCN and its underlying value.

Currently, LTCN has $82.3 million in assets and 1.97 million Litecoin, with 24.25 million shares outstanding. Historically, LTCN's stock traded significantly away from its underlying value, reaching a premium of 5,893% at one point and being discounted by 67% at another.

The proposed listing on NYSE Arca could help to reduce these historical differences, making LTCN easier to trade and improving price accuracy. However, approval from regulators and listing on the NYSE Arca are still required before the conversion can occur.