Grayscale submits litany of SEC filings for Bitcoin Cash, Hedera, and Litecoin ETF proposals

Crypto asset manager Grayscale has submitted a litany of U.S. Securities and Exchange Commission filings on Tuesday seeking approval for exchange-traded funds tracking Bitcoin Cash, Hedera, and Litecoin.

According to the S-1, S-3, and related regulatory documents, the firm is looking to convert its existing closed-end trusts for these assets into ETFs that will largely list on NYSE Arca or Nasdaq. This is the same process Grayscale used to convert its Bitcoin and Ethereum trusts into exchange-traded products in 2024.

"This prospectus has been prepared on the basis that the 19b-4 Application has been approved by the SEC, or the SEC has otherwise approved generic listing standards which would permit the listing of the Trust's shares on NYSE Arca," Grayscale's S-3 statement related to its Litecoin ETF reads.

The move comes as a number of issuers seek approval for ETFs tracking any number of altcoins, from Dogecoin to XRP. Of note, the SEC on Tuesday delayed action on proposals for Grayscale's spot Hedera ETF and Bitwise's spot Dogecoin ETF.

As of June 30, Grayscale’s Bitcoin Cash trust held a net asset value of over $202 million at $4.31 per share, according to the filing. 

A closed-end trust can often trade at either a premium or discount to net asset value, while an ETF, which buys and sells the underlying assets based on demand, has an open-end structure with shares created and redeemed to keep the price close to NAV.

Grayscale’s legal appeal against the SEC’s rejection of its trust conversion proposal is the primary reason why the agency ultimately approved the trading of Bitcoin and Ethereum ETFs in the U.S.

Since launching in January 2024, spot bitcoin ETFs have seen cumulative volumes above $1.2 trillion, according to The Block’s data.