TLDR
- Grayscale files S-3 forms to convert Litecoin and Bitcoin Cash Trusts into ETFs on NYSE Arca.
- The Bitcoin Cash ETF is the first of its kind officially filed with the SEC.
- Grayscale files S-1 for a new Hedera ETF; Nasdaq submits a 19b-4 for listing.
- SEC decisions on the Hedera ETF are expected by October 13 or November 12, if extended.
Grayscale has submitted registration statements to the U.S. Securities and Exchange Commission (SEC) for new exchange-traded funds (ETFs) focused on Litecoin (LTC), Hedera (HBAR), and Bitcoin Cash (BCH). This move signals Grayscale’s effort to expand its range of crypto investment products and convert existing trusts into ETFs where possible. The filings also depend on regulatory frameworks that are still awaiting approval.
Litecoin and Bitcoin Cash Trusts Target ETF Conversion
Grayscale has filed Form S-3 registration statements with the SEC to convert its Litecoin and Bitcoin Cash Trusts into ETFs. If approved, the funds would be listed and traded on NYSE Arca. The company confirmed it is using the proposed Generic Listing Standards in these filings. These standards are not yet approved by the SEC, but if they are, the funds may be allowed to list without additional rule changes.
The Bitcoin Cash ETF is the first of its kind to be formally filed with the SEC. The fund will use Bank of New York Mellon as its administrator, while Coinbase will act as the prime broker and custodian. The filing follows Grayscale’s recent move to convert its Chainlink Trust into an ETF, also using the S-3 form and waiting for the approval of the Generic Listing Standards.
The Litecoin ETF follows the same pattern. Grayscale has no active 19b-4 application for either Litecoin or Bitcoin Cash at this stage. This suggests that the firm is choosing to rely on the possible adoption of the listing standards, rather than pushing for separate rule changes for each fund.
Grayscale stated in its filing: “We believe the fund meets the requirements for listing under the proposed Generic Listing Standards, subject to SEC approval.”
Hedera ETF Filing Follows a Different Process
Unlike the Litecoin and Bitcoin Cash ETFs, Grayscale filed a Form S-1 for its Hedera ETF. This shows that the fund is not being converted from an existing trust but is instead being established as a new offering. Nasdaq has already submitted a 19b-4 application to list and trade shares of the Hedera ETF, and the SEC is reviewing the proposal.
The SEC has postponed its decision on the Hedera ETF rule change, but there are two upcoming deadlines. The next is October 13, and if extended, the final deadline will be November 12. Grayscale does not currently manage a Hedera trust, so this ETF would represent a new product line for the firm.
Another fund issuer, Canary, has also filed for a Hedera ETF. Its final decision deadline falls on November 8. It is possible that the SEC could approve both Hedera ETF applications around the same time, depending on its review outcomes.
Strategy Aligned with Recent Chainlink ETF Filing
Grayscale’s filing approach for the Litecoin, Bitcoin Cash, and Chainlink ETFs follows a similar structure. The firm is looking to convert existing trusts into ETFs by using the S-3 form, which is only available to issuers that meet certain requirements under the Securities Act.
The strategy seems to rely on the SEC adopting broader listing rules for crypto-related funds, rather than pursuing individual applications for each asset. This could streamline the process if the Generic Listing Standards are approved, as it would enable automatic eligibility for multiple funds.
This wave of filings comes after the SEC approved several spot Bitcoin ETFs earlier in 2024. Grayscale appears to be positioning itself for broader acceptance of crypto ETFs beyond Bitcoin, pending regulatory clarity and market readiness.
The SEC has not provided a timeline for when it might approve or reject the proposed Generic Listing Standards. Grayscale’s filings suggest that it is prepared to wait, rather than push through complex rule changes one by one.
