Grayscale has made significant strides in the cryptocurrency market by officially filing new registration statements with the U.S. Securities and Exchange Commission (SEC) for three cryptocurrency exchange-traded funds (ETFs). The filings include an S-1 application for a Hedera (HBAR) ETF, along with S-3 applications for ETFs focusing on Litecoin (LTC) and Bitcoin Cash (BCH). Although the filings are now public, they await SEC approval and could undergo further review or amendment.
This marks a notable milestone as it constitutes the first formal ETF filing for Bitcoin Cash with the SEC. If granted approval, it would offer U.S. investors a regulated avenue for gaining exposure to Bitcoin Cash through a familiar stock market product. In a bid to ensure credibility and reliability, Grayscale has appointed Bank of New York Mellon as the administrator for the fund, with Coinbase designated as the prime broker and custodian. This operational framework mirrors that of Grayscale’s other offerings, thereby adding an additional layer of institutional confidence.
While the Litecoin ETF follows a similar trajectory, it is important to highlight that Grayscale has not submitted a 19b-4 application for either the Litecoin or Bitcoin Cash funds. This indicates that the company is not currently advocating for specific rule changes. Instead, it is waiting for the SEC to approve a broader set of regulations known as the Generic Listing Standards. Should these standards be accepted, Grayscale anticipates that the funds will be eligible for listing on NYSE Arca.
In its filings, Grayscale emphasized that its funds could qualify under the anticipated Generic Listing Standards, contingent on SEC approval. This strategy is reminiscent of the methodology applied in Grayscale’s recent application for a Chainlink Trust, which also utilized the S-3 form alongside the same listing standards.
This method reflects a growing trend among asset managers who are seeking more efficient pathways to bring crypto ETFs to market. By relying on a single regulatory framework rather than awaiting distinct approvals for each asset, firms are positioning themselves to navigate the complex landscape of cryptocurrency investment more effectively.
The broader context for crypto ETFs is also evolving. The SEC has recently deferred its decision on Bitwise’s proposed Dogecoin ETF, noting the necessity for additional time to deliberate on the rule change. This pause follows a certain slowdown experienced earlier in June. However, the landscape remains dynamic, as REX Shares and Osprey Funds plan to introduce the first U.S. Dogecoin ETF under the 1940 Act on September 11.
Bloomberg ETF analyst Eric Balchunas commented on the anticipated Dogecoin ETF, highlighting the potential for it to mark the dawn of a new era for memecoin ETFs. In a recent post on X, he noted the unique position such a fund would hold, as it would be the first U.S. ETF tied to an asset lacking practical utility, emphasizing the unusual intersection of meme-based cryptocurrencies and mainstream finance.
In summary, Grayscale’s recent filings signify an ongoing push toward mainstream ETF offerings linked to a wider array of digital assets. Although the timeline for SEC approvals remains uncertain, these developments illustrate a rising institutional confidence in the sustainability and relevance of altcoins beyond the conventional Bitcoin and Ethereum frameworks.
