The U.S. Securities and Exchange Commission (SEC) has invited public feedback on a proposal to transform Grayscale’s Litecoin Trust into an exchange-traded product (ETP). The request follows an official acknowledgment of NYSE Arca’s 19b-4 submitting, submitted on behalf of Grayscale.
US SEC Calls for Comments on Grayscale Litecoin ETF
The SEC has opened a public remark interval relating to the proposed conversion of Grayscale’s Litecoin Trust into an ETF. The company acknowledged NYSE Arca’s submitting and has requested feedback to be submitted inside 21 days of the proposal’s publication within the Federal Register.
NYSE Arca had beforehand submitted a 19b-4 submitting, a needed step within the crypto ETF approval course of. This submitting pertains to each the Grayscale Litecoin Trust and the Grayscale Solana Trust. The SEC’s resolution will contain both approval, disapproval or the initiation of additional proceedings.
This growth follows a current transfer by high asset managers to expand crypto ETF choices. Grayscale filed a 19b-4 kind to transform its Litecoin Trust into an ETF, whereas Coinshares submitted an S-1 kind for an LTC ETF. The US SEC resolution might form the way forward for Litecoin funding merchandise within the U.S.
Crypto ETF Filings Increase Amid Leadership Transition
In current weeks, a number of corporations have submitted proposals for crypto-based ETFs, together with funds for Dogecoin (DOGE) and different altcoins. The rise in filings comes at a time when the US SEC is present process a management transition.
Late final month, the asset supervisor additionally filed for a Solana ETF earlier than submitting its Spot XRP ETF application. Grayscale goals to transform its XRP Trust, which holds $16 million in property, into an ETF listed on the NYSE. This submitting makes Grayscale the seventh asset supervisor to hunt SEC approval for an XRP ETF.
Following the departure of former SEC Chair Gary Gensler, performing Chair Mark Uyeda appointed Commissioner Hester Peirce to supervise a devoted crypto activity drive. Peirce has expressed curiosity in refining the classification of crypto property and adjusting the registration course of for digital asset corporations.
Crypto ETFs and Market Developments
The US SEC authorized the spot Bitcoin ETF in early January 2024, marking a shift in regulatory developments. It additionally authorized the spot Ethereum ETFs on the time as a part of the mission to endorse crypto funding devices.
With the continuing assessment of the Grayscale Litecoin ETF, traders anticipate the US SEC will lengthen comparable approvals to altcoin-based ETFs. The resolution might set a precedent for future filings involving varied digital property.
The SEC will thus take into account the response earlier than making the ultimate resolution on the conversion of Grayscale’s Litecoin Trust. Actually, the assessment contains checks by the regulator on the market danger, investor’s safety and conformity to current securities legal guidelines.
After the remark interval for the involved public, the company might approve the applying, deny the license or open up for additional proceedings for the detailed analysis.
Meanwhile, Grayscale additionally lately launched its Dogecoin Trust, offering institutional traders with publicity to DOGE. The Trust is now open for day by day subscriptions to accredited traders and operates equally to Grayscale’s different single-asset funding trusts. This growth has sparked hypothesis a couple of potential DOGE ETF submitting sooner or later.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with 4 years {of professional} expertise, having contributed considerably to varied media shops on cryptocurrency tendencies and applied sciences. With over 4000 revealed articles throughout varied media shops, he goals to tell, educate and introduce extra individuals to the Blockchain and DeFi world. Outside of his journalism profession, Ronny enjoys the joys of motorbike driving, exploring new trails and landscapes.
Disclaimer: The introduced content material might embrace the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any duty on your private monetary loss.
