Grayscale files to rename Litecoin Trust as Grayscale Litecoin Trust ETF

Grayscale Investments has filed an S-3/A registration statement with the SEC to rebrand its Grayscale Litecoin Trust as the Grayscale Litecoin Trust ETF, with plans to list shares on NYSE Arca. The filing, submitted on September 11, 2026, represents the latest step in a conversion process that has been grinding through the regulatory machinery since early 2025.

If approved, the trust would gain the creation and redemption mechanisms that define a proper ETF, meaning its share price could finally track the actual value of the Litecoin it holds.

From OTC to exchange: why the structure matters

The Grayscale Litecoin Trust has been trading over-the-counter under the ticker LTCN since its establishment in January 2018. Without traditional ETF plumbing, there’s been no reliable way for authorized participants to create or redeem shares based on underlying asset value.

As of June 30, 2026, the trust held approximately 24.25 million shares outstanding, with a net asset value of $82.28 million. That works out to roughly $3.39 per share on a NAV basis.

With creation and redemption baskets in place, market makers would be able to arbitrage away significant premiums or discounts, keeping the trading price tethered to the value of the underlying Litecoin.

A long regulatory road

Grayscale’s push to convert this particular trust hasn’t been quick. The company first submitted a 19b-4 filing with the SEC on January 24, 2025, which is the form that proposes a rule change allowing a new product to list on an exchange. An amended version followed in February 2025.

The SEC has extended its review timeline multiple times since then, with one notable deadline falling in October 2025.

To prepare for eventual approval, Grayscale has entered into a new prime brokerage agreement with Coinbase. The exchange would facilitate the creation and redemption of shares once trading begins on NYSE Arca.

The trust currently charges a 2.5% annual sponsor fee, a figure that is notably higher than the fees seen on spot Bitcoin ETFs that launched in the US in early 2024.

Shrinking assets, growing ambitions

One of the more striking data points in the filing is the trust’s declining assets under management. In early 2025, the trust held over $215 million in AUM. By mid-2026, that figure had dropped to approximately $82 million — a roughly 62% decline over about 18 months.

Grayscale watched its Bitcoin trust, GBTC, trade at a persistent discount to NAV for years before its conversion to a spot Bitcoin ETF in January 2024. The Ethereum Trust underwent a similar process, converting to the Grayscale Ethereum Trust ETF. Litecoin appears to be next in line, following a template that Grayscale has now refined through multiple conversions.

What an approval would mean for the broader market

A Litecoin ETF listing on NYSE Arca would expand the menu of crypto assets available to investors through traditional brokerage accounts. Currently, spot ETFs in the US cover Bitcoin and Ethereum.

Litecoin has been around since 2011 and is one of the longest-running cryptocurrency networks.

If the pattern from Bitcoin and Ethereum conversions holds, approval would likely trigger a repricing of LTCN shares toward NAV, closing whatever premium or discount currently exists.

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