Grayscale seeks SEC approval to convert Bitcoin Cash, Hedera, and Litecoin Trusts into ETFs

Source Cryptopolitan

Grayscale, a top digital asset management firm, has reportedly filed several documents with the U.S. Securities and Exchange Commission (SEC) to obtain approval for exchange-traded funds (ETFs) that would follow the performance of Bitcoin Cash, Litecoin, and  Hedera.

These documents include the S-1 and S-3, among other related documents. With this, the digital assets platform intends to convert its current closed-end trusts for these cryptocurrencies into ETFs that will mainly be listed on NYSE Arca or Nasdaq. 

According to reliable sources, this is not the first time Grayscale has initiated such an approach. In 2024, the digital assets platform changed its BTC and ETH trusts into exchange-traded products.

Crypto firms seek SEC’s approval for ETFs connected to altcoins

Concerning Grayscale’s filings with the SEC on its Litecoin ETF, its S-3 filing document states that this prospectus assumes that the commission has either had the 19b-4 application approved or has established general listing regulations that guarantee the Trust’s shares to be among those listed on NYSE Arca. 

This follows a growing trend among crypto companies seeking approval for ETFs connected to altcoins. This includes Dogecoin and XRP. Meanwhile, reports from reliable sources have pointed out that earlier on Tuesday, September 9, the SEC had postponed its decision on Bitwise’s spot Dogecoin ETF and Grayscale’s spot Hedera ETF.

On the other hand, Grayscale’s Bitcoin Cash trust has demonstrated exemplary results. According to the filing, its net asset value recorded figures exceeding $202 million with its shares priced at $4.31 each on June 30.

Notably, a high-performance difference exists between a closed-end trust and an ETF. A closed-end trust can conduct trades for more or less than its net asset value; however, an ETF purchases and sells assets depending on the demand in the market. Additionally, it has an open-end structure that develops and redeems shares to maintain prices close to the net asset value. 

Earlier, Grayscale filed a lawsuit against the SEC for rejecting its proposal to convert its trust. Concerning this, analysts have anticipated that this could be a significant reason behind the commission’s reaction to permit Bitcoin and Ethereum ETFs later to carry out trade in the US.

According to data from reliable sources, since they started operating in the US in January 2024, spot Bitcoin ETFs have reached their highest overall trading volume, recording figures exceeding 1.2 trillion.

The US SEC delays Bitwise’s Dogecoin ETF approval 

REX Shares and Osprey Funds were reportedly making arrangements to launch their Dogecoin ETF this week. However, on Tuesday, September 9, the SEC postponed their decision on Bitwise’s Dogecoin ETF. 

In a filing, the commission mentioned that their abrupt delay was to gather more time to examine whether to approve or reject a proposed rule change that could permit Bitwise to list a meme coin as an ETF tracking. 

Apart from Bitwise’s Dogecoin ETF facing delays recently, it is worth noting that its proposed DOGE fund was also subjected to delays back in June. On the contrary, REX Shares and Osprey Funds’ Dogecoin ETF will commence trading activities on Thursday, September 11, having adopted a completely different approach for its listing.

In an X post, Analyst Eric Balchunas commented on the situation. According to him, the Thursday DOGE launch signifies an entry to an era of meme coin ETFs, despite being under the 40 Act. Balchunas further anticipated that this would be the first-ever US ETF to hold something that does not entail practical use.

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
OpenAI Introduces Lowest-Cost ChatGPT Subscription in India with UPI Payment OptionOn Tuesday, OpenAI introduced ChatGPT Go, its most affordable AI subscription tier, targeting the price-sensitive Indian market. Nick Turley, OpenAI’s Vice President and Head of ChatGPT, announced the launch via an X post, highlighting that users can pay through India’s Unified Payments Interface (UPI).
Author  Mitrade
Aug 19, Tue
On Tuesday, OpenAI introduced ChatGPT Go, its most affordable AI subscription tier, targeting the price-sensitive Indian market. Nick Turley, OpenAI’s Vice President and Head of ChatGPT, announced the launch via an X post, highlighting that users can pay through India’s Unified Payments Interface (UPI).
placeholder
Bitcoin Slides to $111K Ahead of PCE Inflation Data, Faces Monthly DeclineBitcoin experienced volatile trading on Friday, sliding close to $111,000 as investors awaited critical U.S.
Author  Mitrade
Aug 29, Fri
Bitcoin experienced volatile trading on Friday, sliding close to $111,000 as investors awaited critical U.S.
placeholder
Asian Currencies Flat as Dollar Softens Amid Labor Market and Fed Rate-Cut FocusMost Asian currencies slipped slightly on Thursday as the U.S. dollar recovered some of its overnight losses, driven by increasing market confidence that the Federal Reserve will reduce interest rates this month due to ongoing signs of labor market cooling.
Author  Mitrade
Sept 04, Thu
Most Asian currencies slipped slightly on Thursday as the U.S. dollar recovered some of its overnight losses, driven by increasing market confidence that the Federal Reserve will reduce interest rates this month due to ongoing signs of labor market cooling.
placeholder
Dollar steadies before U.S. jobs data; euro pressured by French turmoilThe U.S. dollar edged higher Tuesday, stabilizing after a slide to seven-week lows as traders looked ahead to key labor and inflation data expected to lock in a Federal Reserve rate cut next week.
Author  Mitrade
21 hours ago
The U.S. dollar edged higher Tuesday, stabilizing after a slide to seven-week lows as traders looked ahead to key labor and inflation data expected to lock in a Federal Reserve rate cut next week.
placeholder
European stocks mixed; French political crisis, U.S. inflation in focusEuropean equities traded narrowly on Tuesday as investors weighed political turmoil in France against anticipation of key U.S. inflation data later this week.
Author  Mitrade
21 hours ago
European equities traded narrowly on Tuesday as investors weighed political turmoil in France against anticipation of key U.S. inflation data later this week.
goTop
quote