Grayscale, one of the world's largest crypto fund management companies, continues its spot crypto ETF push without slowing down. This time, the company has filed with the U.S. Securities and Exchange Commission (SEC) for Bitcoin Cash (BCH), Hedera (HBAR), and Litecoin (LTC).
New ETF filings on the SEC's desk
Grayscale's filings include S-1, S-3, and related regulatory forms. The company aims to convert its existing closed-end funds (trusts) into exchange-traded funds (ETFs). This conversion process is identical to the process Grayscale used to convert its Bitcoin and Ethereum funds into ETFs in 2024.
The filings indicate that the new ETFs are planned to be listed on the NYSE Arca or Nasdaq. For example, the S-3 filing for Litecoin included the following statements:
“This prospectus has been prepared assuming the SEC has approved Form 19b-4 or similar listing standards.”
In other words, the company has prepared the documents assuming a positive outcome to the process.
Altcoin ETF race heats up
Grayscale's move once again demonstrates that it does not intend to limit itself to Bitcoin and Ethereum. ETF applications for numerous altcoins, from Dogecoin to XRP, are currently on the agenda. Indeed, on the same day, the SEC announced that it had postponed its decision on Grayscale's spot Hedera ETF and Bitwise's Dogecoin ETF application.
This development indicates that altcoin ETF competition in the crypto market will intensify. Considering the SEC's busy schedule, the crypto community is in for a busy time in the coming months.
Current Status of Funds
According to data included in the filings, Grayscale's Bitcoin Cash trust had a net asset value of $202 million as of June 30th. The value per share is $4.31. While closed-end funds typically trade at a premium or discount to their net asset value, ETFs can keep the price close to their net asset value by buying and selling assets based on investor demand.
Therefore, the ETF structure stands out as a more transparent and attractive investment vehicle for both institutional and individual investors.
To date, the SEC has only approved Bitcoin and Ethereum spot ETFs. Grayscale's lawsuit against the institution, which it won, played a significant role in these approvals. After the court case, the SEC was forced to approve the Bitcoin and Ethereum ETFs.
Spot Bitcoin ETFs, which began trading in 2024, quickly reached a trading volume exceeding $1.2 trillion. This demonstrates the strong market appetite for crypto ETFs. Grayscale's new applications for Bitcoin Cash, Hedera, and Litecoin indicate that altcoin ETFs are on the horizon. While the SEC's stance remains to be seen, market anticipation is growing. If these products are approved, it could usher in a new era in the crypto market, with institutional capital flocking to altcoins.
