Grayscale files to convert Litecoin Trust to spot ETF
In brief
- Grayscale filed to convert LTCN trust into a spot Litecoin ETF on NYSE Arca.
- Trust held $82.28 million in net assets as of June 30, 2026, with 2.5% annual sponsor fee.
- Creation and redemption mechanisms would align share price with Litecoin's actual value.
- Filing follows Grayscale's successful Bitcoin and Ethereum ETF conversions in 2024.
The filing and structure
Grayscale filed the S-3/A on September 11, 2026, after submitting an initial 19b-4 filing on January 24, 2025, with an amended version in February 2025. The trust plans to list shares on NYSE Arca, shifting from its current over-the-counter status under the ticker LTCN.
The Grayscale Litecoin Trust has been trading OTC under LTCN since January 2018. As of June 30, 2026, the trust held approximately 24.25 million shares outstanding with a net asset value of $82.28 million, working out to roughly $3.39 per share on a NAV basis.
The conversion hinges on regulatory approval. If approved, the trust would gain the creation and redemption mechanisms that define a proper ETF, meaning its share price could finally track the actual value of the Litecoin it holds. Grayscale has entered into a new prime brokerage agreement with Coinbase to facilitate the creation and redemption of shares.
The precedent and market context
This filing follows a proven playbook. Grayscale's Bitcoin trust, GBTC, converted to a spot Bitcoin ETF in January 2024. The Ethereum Trust underwent a similar conversion to become the Grayscale Ethereum Trust ETF. Both conversions succeeded, and currently, spot ETFs in the US cover Bitcoin and Ethereum.
A Litecoin ETF would expand that menu. Litecoin has been around since 2011 and is one of the longest-running cryptocurrency networks.
What's at stake for LTCN holders
The trust's financials tell part of the story. The trust currently charges a 2.5% annual sponsor fee. Assets under management have declined sharply: the trust held over $215 million in early 2025, but that figure dropped to approximately $82 million by mid-2026, a roughly 62% decline.
If the pattern from Bitcoin and Ethereum conversions holds, approval would likely trigger a repricing of LTCN shares toward NAV. For years, GBTC traded at a discount to its underlying Bitcoin holdings. The ETF conversion fixed that arbitrage gap.
The same mechanics would apply here. With creation and redemption baskets in place, market makers would be able to arbitrage away significant premiums or discounts, keeping the trading price tethered to the value of the underlying Litecoin.
