Grayscale Files to Turn Litecoin Trust Into an ETF

Highlights

Grayscale filed an S-3/A with the SEC on September 11 to rename its Litecoin Trust the "Grayscale Litecoin Trust ETF"
Proposed ticker is LTCN, targeting a listing on NYSE Arca
The underlying application to list as an exchange-traded product dates back to February 6, 2025
Bank of New York Mellon would administer the fund; Coinbase Custody Trust Company would hold the Litecoin

Grayscale has asked the SEC to convert its Litecoin Trust into a full exchange-traded fund, filing an amended S-3 registration statement that would rename the vehicle the "Grayscale Litecoin Trust ETF" and list its shares on NYSE Arca under the ticker LTCN, according to a Cointelegraph report that reviewed the filing.

The move is the latest step in a process Grayscale started well over a year ago. The firm first applied to list Litecoin Trust shares as an exchange-traded product on NYSE Arca on February 6, 2025, and has continued to refine that application since, most recently with the amendment filed this week. Bank of New York Mellon is named as the fund's administrator, while Coinbase Custody Trust Company would serve as prime broker and custodian for the underlying Litecoin.

Converting a closed-end trust into an ETF matters mechanically as much as symbolically. Grayscale's original Litecoin Trust, like its early Bitcoin and Ethereum trusts before their own ETF conversions, has no in-kind creation and redemption mechanism, which means its share price can drift meaningfully away from the actual value of the Litecoin it holds. An ETF wrapper closes that gap by letting authorized participants create or redeem shares directly against the underlying asset, keeping the market price tethered to net asset value. That is the same structural fix that took Grayscale's flagship GBTC and ETHE products from trading at steep discounts to trading in line with spot Bitcoin and Ether once they converted in early 2024.

The filing is part of a broader wave of Grayscale ETF conversion attempts working through the SEC at once. The firm has also submitted proposals covering Bitcoin Cash and Hedera in recent months, and the regulator has already opened a public comment period specifically on the Litecoin proposal — a procedural step that signals the SEC is engaging with the application rather than sitting on it. None of Grayscale's newer single-asset trust conversions has cleared that process yet, so LTCN's approval timeline remains open.

Litecoin itself has mostly stayed out of the ETF spotlight this year compared with Solana, XRP or Zcash, each of which has seen multiple asset managers compete for the same product. A recent example is Canary's staked TRX ETF, which is set to list on Cboe — a reminder of how crowded the altcoin-ETF queue has become even for tokens outside the usual Bitcoin and Ether conversation. A Grayscale-led Litecoin ETF would be one of the first dedicated vehicles for LTC if the SEC ultimately signs off, giving institutional allocators a regulated way to gain exposure without holding the asset directly.

The filing lands in the middle of a busier-than-usual stretch for crypto ETF applications generally, as issuers race to get single-asset products approved ahead of any shift in the SEC's posture toward digital assets — a shift that has also shown up in the regulator's own rulemaking agenda, including a fresh SEC proposal on crypto offering rules unveiled as the CLARITY Act's path through Congress stalls. Whether LTCN clears the ETF queue before its rivals in the Bitcoin Cash and Hedera filings will be one of the clearer signals of how the agency is prioritizing this next round of conversions.

FAQ

What is LTCN?
LTCN is the ticker Grayscale proposed for its Litecoin Trust once it converts into a full exchange-traded fund listed on NYSE Arca.

Is the Grayscale Litecoin Trust already trading?
Yes, the existing trust already trades over the counter; this filing seeks to convert it into an ETF with creation and redemption features rather than launch a new product from scratch.

When did Grayscale first apply for this listing?
Grayscale's original application to list Litecoin Trust shares as an exchange-traded product on NYSE Arca was filed on February 6, 2025.

Who would custody the Litecoin if the ETF is approved?
Coinbase Custody Trust Company is named as custodian, with Bank of New York Mellon serving as the fund's administrator.