Grayscale Seeks SEC Approval to Convert Litecoin Trust to ETF

Grayscale Investments has taken another step towards expanding its crypto ETF offerings. The company filed with the SEC to convert its Grayscale Litecoin Trust into a proper exchange-traded fund (ETF), listing it on NYSE Arca under the same name, but with an 'ETF' suffix.

This change would enable the trust to operate as a traditional ETF, allowing creation and redemption mechanisms that would help its share price better track the value of Litecoin. The Grayscale Litecoin Trust has seen a significant decline in assets under management, dropping from $215 million in early 2025 to $82 million by mid-2026.

The approval would not only benefit investors but also mark another milestone for Grayscale's efforts to bring more crypto ETF options to the market. The company has already completed similar conversions for its Bitcoin and Ethereum trusts.