Grayscale has taken another regulatory step toward converting its long-running Litecoin Trust into a Litecoin ETF. According to the recent September 11 S-3/A filing, the company intends to re-name the instrument Grayscale Litecoin Trust ETF and list its shares on NYSE Arca.
Currently, Litecoin (LTC) is trading near $53.45, down about 0.6% over 24 hours, according to the figures available for this update. LTC has traded between roughly $53.41 and $54.24, giving it a market capitalization near $4.15 billion. Its circulating supply is about 77.6 million LTC.
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Grayscale Litecoin ETF Filing Moves Forward
Despite the recent filing, Grayscale Litecoin ETF to start trading immediately. The filing suggests that the product will still require the approval of the related NYSE Arca listing process, unless SEC decides to waive the requirement for separate approval.
The filing comes after the process that began in January 2025. Back then, NYSE Arca submitted a Rule 19b-4 application for the approval of listing shares of the instrument. As of September 11, the SEC had not approved the application, leaving the exchange-listing process as a key regulatory hurdle.
Grayscale’s Litecoin Trust was founded back in January 2018. It is currently available as an over-the-counter instrument with the LTCN ticker. The structure of the trust usually leads to the shares being valued significantly higher or lower compared to the underlying Litecoin value.
Litecoin ETF Addresses Major NAV Discrepancies
Incorporating the ETF would bring into place the standard creation and redemption mechanisms. The authorized participants would handle share baskets, while the liquidity providers would assist with dealing with the underlying Litecoin. The current filing provides for baskets with 10,000 shares and creates and redeems them in cash.
The construction may be significant in light of the significant discrepancies observed between the price of the LTCN and the net asset value of the security. For instance, from August 2020 to June 2026, the trust has had the maximum premium of 5,893% and the maximum discount of 67%. On average, the premiums were 592% against the discounts of 26%.
The latest figures show the discount problem remains relevant. On September 9, LTCN closed at $4.01, representing an 8% discount to its net asset value. As of June 30, the trust reported approximately $82.3 million in NAV and $3.39 in NAV per share.
Grayscale Faces Established Litecoin ETF Rival
Grayscale could enter an increasingly competitive Litecoin ETF market. Canary Capital already operates a Litecoin ETF, giving investors an exchange-traded option for gaining exposure to LTC. Grayscale’s potential advantage would therefore come from its established brand and existing trust rather than being the first issuer to offer such a product.
The market also provides an indication of investor demand. Canary’s Litecoin ETF has attracted substantially less capital than leading Bitcoin and Ethereum ETFs. This suggests institutional interest in Litecoin remains comparatively limited, despite the broader expansion of regulated crypto investment products.
The proposed conversion also follows Grayscale’s previous strategy with other major crypto trusts. The company converted its Bitcoin and Ethereum trusts into exchange-traded products. Those moves showed how an ETF structure can address some of the limitations associated with older trust-based investment vehicles.
SEC Decision Remains Key for Litecoin ETF
The filing identifies Coinbase as the trust’s prime broker and outlines the custody arrangements supporting the proposed ETF structure. If approved, the product would give investors another regulated way to gain Litecoin exposure through traditional brokerage accounts without directly purchasing or storing LTC.
The conversion also comes as the trust has become significantly smaller. Grayscale reported more than $215 million in assets during early 2025, compared with roughly $82.3 million in NAV as of June 30, 2026. The decline reflects the growing competition from newer exchange-traded crypto investment products.
For now, investors must distinguish between Grayscale’s latest filing and an approved ETF. The company has submitted the registration amendment, but NYSE Arca’s listing approval remains an important outstanding requirement. The next major step will depend on the SEC and the exchange-listing process. Until then, LTCN remains an OTC-traded trust rather than an active Litecoin ETF.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
