Grayscale applies for approval of Bitcoin Cash, Hedera, and Litecoin ETFs

Digital asset (cryptocurrency) manager Grayscale has filed large-scale paperwork with the U.S. Securities and Exchange Commission (SEC) for approval of exchange-traded funds (ETFs) based on Bitcoin Cash, Hedera, and Litecoin.

On the 9th (local time), The Block reported that Grayscale is seeking to convert its existing closed-end trusts into ETFs to be listed on NYSE Arca and Nasdaq, the same method used to convert its Bitcoin and Ethereum trusts into ETFs in 2024. According to the filing, the Litecoin ETF was drafted on the assumption that the SEC had approved a 19b-4 filing or the listing standards.

This move comes amid a competition to approve altcoin ETFs ranging from Dogecoin to Ripple. On the same day, the SEC postponed review of Grayscale's Hedera spot ETF and Bitwise's Dogecoin spot ETF.

Grayscale's Bitcoin Cash trust had a net asset value exceeding $202 million as of June 30 and was valued at $4.31 per share. Closed-end trusts can trade at prices divorced from net asset value, whereas ETFs reduce the gap between price and net asset value by buying or selling underlying assets according to demand.

The lawsuit Grayscale filed against the SEC's refusal to approve trust conversions has a precedent that led to the approvals of Bitcoin and Ethereum ETFs. The spot Bitcoin ETF launched in January 2024 has accumulated trading volume exceeding $1.2 trillion.