After acknowledging NYSE Arca’s 19b-4 filing, the US SEC solicits public comments on Grayscale’s Litecoin ETF. The submittal period is 21 days.
The US Securities and Exchange Commission (SEC) has requested public comments regarding a proposal to convert Grayscale’s Litecoin Trust into an exchange-traded product (ETP). On behalf of Grayscale, NYSE Arca submitted a 19b-4 filing, which was officially acknowledged. Consequently, the request was made.
Comments on the Grayscale Litecoin ETF are being solicited by the US Securities and Exchange Commission (SEC)
The Securities and Exchange Commission (SEC) has initiated a public comment period concerning the proposed conversion of Grayscale’s Litecoin Trust into an exchange-traded fund (ETF). Within 21 days of the proposal’s publication in the Federal Register, the agency acknowledged NYSE Arca’s filing and requested that comments be submitted.
NYSE Arca had previously submitted a 19b-4 filing, a mandatory step in the approval procedure for crypto ETFs. This filing is relevant to the Grayscale Litecoin Trust and the Grayscale Solana Trust. The SEC’s decision will result in the initiation of additional proceedings, disfavor, or approval.
This development has occurred following a recent initiative by prominent asset managers to broaden their crypto ETF offerings. To convert its Litecoin Trust into an ETF, Grayscale submitted a 19b-4 form, while Coinshares submitted an S-1 form for an LTCETF. The US SEC’s decision could influence the destiny of Litecoin investment products in the United States.
The number of crypto exchange-traded funds (ETFs) filed has increased in response to the
In recent weeks, numerous organizations have submitted proposals for crypto-based exchange-traded funds (ETFs), which include funds for Dogecoin (DOGE) and other altcoins. The increase in filings coincides with the transition of leadership at the US Securities and Exchange Commission.
Before submitting its Spot XRP ETF application, the asset manager also submitted for a Solana ETF late last month. Grayscale aims to transform its XRP Trust, which currently has $16 million in assets, into an ETF listed on the NYSE. Grayscale has become the seventh asset manager to submit a request for SEC approval for an XRP ETF as a result of this filing.
Interim Chair Mark Uyeda appointed Commissioner Hester Peirce to supervise a crypto task force following the departure of former SEC Chair Gary Gensler. Peirce has indicated a desire to enhance the classification of crypto assets and modify the registration procedure for digital asset firms.
Market Developments and Crypto ETFs
The spot Bitcoin ETF was authorized by the US Securities and Exchange Commission (SEC) in early January 2024, representing a significant change in regulatory developments. Additionally, the spot Ethereum ETFs were approved as part of the project to endorse crypto investment instruments.
Investors anticipate that the US Securities and Exchange Commission (SEC) will grant similar approvals to altcoin-based exchange-traded funds (ETFs) in light of the ongoing assessment of the Grayscale Litecoin ETF. The decision has the potential to establish a precedent for future filings that involve a variety of digital assets.
Consequently, the SEC will evaluate the response before finalizing the conversion of Grayscale’s Litecoin Trust. In reality, the evaluation involves the regulator conducting assessments of market risk, investor protection, and compliance with current securities laws.
The agency may approve the application, deny the license, or offer it up for further proceedings for a more detailed evaluation after the comment period for the concerned public has ended.
Grayscale also recently introduced its Dogecoin Trust, which exposes institutional investors to DOGE. The Trust is currently available for daily subscriptions to accredited investors and functions in a manner that is consistent with Grayscale’s other single-asset investment trusts. This development has spurred speculation regarding the possibility of a future DOGE ETF filing.