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      Grayscale Seeks to Convert Litecoin Trust into ETF

      Grayscale Investments has submitted a registration statement to the U.S. Securities and Exchange Commission (SEC) to rename its Grayscale Litecoin Trust as the Grayscale Litecoin Trust ETF. This filing, made on September 11, 2026, marks a significant step in the company's ongoing efforts to convert its Litecoin product into an exchange-traded fund (ETF), a process that has been in progress since early 2025.

      If the SEC approves the conversion, the trust would benefit from the creation and redemption mechanisms typical of ETFs, allowing its share price to more accurately reflect the value of the underlying Litecoin. Currently, the Grayscale Litecoin Trust trades over-the-counter under the ticker LTCN and has approximately 24.25 million shares outstanding, with a net asset value of $82.28 million as of June 30, 2026.

      Grayscale's journey to convert the Litecoin Trust has faced delays, with the SEC extending its review timeline multiple times since the initial filing in January 2025. To facilitate the conversion, Grayscale has established a new prime brokerage agreement with Coinbase, which will assist in the creation and redemption of shares once trading commences on NYSE Arca. The trust currently charges a 2.5% annual sponsor fee, which is higher than fees associated with recently launched spot Bitcoin ETFs in the U.S.

      The proposed ETF could broaden the range of cryptocurrency investment options available to traditional investors, as the U.S. currently offers spot ETFs only for Bitcoin and Ethereum. A successful conversion could also lead to a repricing of LTCN shares, aligning them more closely with their net asset value, similar to the patterns observed during the conversions of Grayscale's Bitcoin and Ethereum trusts.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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