Grayscale Investments has intensified excitement in the cryptocurrency market by filing three new Exchange-Traded Fund (ETF) applications with the Securities and Exchange Commission (SEC). The firm has submitted separate filings for ETFs linked to Litecoin (LTC), Hedera (HBAR), and Bitcoin Cash (BCH), aiming to transform its existing Trusts for these altcoins into ETF formats.
This shift follows Grayscale’s earlier success with its Bitcoin Trust, which became the first U.S. spot Bitcoin ETF listed on NYSE Arca in 2024. By converting its altcoin Trusts into ETFs, Grayscale is looking to enhance the liquidity and accessibility of these assets on mainstream trading platforms, opening up new avenues for both retail and institutional investors.
The filing for the Hedera ETF includes an S-1 registration, complementing an earlier 19b-4 application filed by Nasdaq to list and trade Grayscale’s Hedera Trust. The S-1 states, “In connection with this registration statement, on February 28, 2025, Nasdaq Stock Market LLC filed an application with the SEC pursuant to Rule 19b-4 […] to list the shares of Grayscale Hedera Trust ETF on NASDAQ.”
Similarly, the New York Stock Exchange (NYSE) has initiated a process to convert Grayscale’s Litecoin Trust into an ETF, contingent upon SEC approval of their 19b-4 application. Grayscale’s Litecoin application underscores that the prospectus has been crafted under the assumption that the SEC has approved the necessary generic listing standards for the Trust’s shares on NYSE Arca.
However, it is important to note that none of the related 19b-4 applications have received SEC approval as of now. Grayscale has also submitted a Bitcoin Cash ETF under the proposed Generic Listing Standards, which is still pending SEC evaluation. This recent move follows Grayscale’s filing for a Chainlink ETF just days earlier, with both products designed to potentially qualify for listing on NYSE Arca without needing separate 19b-4 applications.
The anticipation surrounding these filings comes amid a broader context where issuers are eagerly awaiting SEC approval for over 80 altcoin ETF applications. Notably, analysts at Bloomberg, including James Seyffart and Eric Balchunas, have indicated that applications for Litecoin ETFs are among the frontrunners in terms of likelihood for SEC approval.
As Grayscale navigates this regulatory landscape, the firm’s latest actions signal a strategic push to solidify its place in the evolving cryptocurrency investment ecosystem.
