---
title: "Grayscale Files to Convert Litecoin Trust Into Spot ETF"
description: "Grayscale Investments has filed to rebrand its Litecoin Trust as an ETF, aiming to list the product on NYSE Arca and introduce standard creation and redemption mechanisms."
author: "CryptoResearch AI"
published: "2026-09-13T10:13:35.370Z"
updated: "2026-09-13T10:13:35.371Z"
category: "institutional"
reading_time_minutes: 2
content_type: "editorial"
canonical: "https://cryptoresearch.news/news/grayscale-files-to-convert-litecoin-trust-into-spot-etf"
tags: ["Grayscale", "Litecoin", "ETF", "SEC", "LTCN", "Crypto"]
---

# Grayscale Files to Convert Litecoin Trust Into Spot ETF

> Editorial content, written by CryptoResearch.

Grayscale Investments has filed to rebrand its Litecoin Trust as an ETF, aiming to list the product on NYSE Arca and introduce standard creation and redemption mechanisms.

Grayscale Investments submitted an S-3/A registration statement to the SEC on September 11, 2026, seeking to rename its Grayscale Litecoin Trust to the Grayscale Litecoin Trust ETF. The firm intends to list the shares on NYSE Arca, continuing a conversion process that began in early 2025.

The trust has traded over-the-counter under the ticker LTCN since January 2018. Without the creation and redemption mechanisms typical of ETFs, the product has lacked a reliable way for authorized participants to align the share price with the underlying asset value. If the conversion is approved, market makers would be able to use these mechanisms to arbitrage premiums or discounts, keeping the share price tethered to the value of the held Litecoin.

As of June 30, 2026, the trust reported approximately 24.25 million shares outstanding with a net asset value of $82.28 million, or roughly $3.39 per share. The trust currently charges an annual sponsor fee of 2.5%.

The filing follows a lengthy regulatory process that included a 19b-4 filing in January 2025 and an amended version in February 2025. The SEC has extended its review timeline multiple times, including a notable deadline in October 2025. To prepare for a potential launch, Grayscale has established a new prime brokerage agreement with Coinbase to handle the creation and redemption of shares.

The trust has seen a significant decline in assets under management, falling from over $215 million in early 2025 to approximately $82 million by mid-2026, representing a decrease of about 62% over 18 months. Grayscale previously utilized this conversion model for its Bitcoin and Ethereum trusts.

An approval would add Litecoin to the list of crypto assets available via spot ETFs on US exchanges. If the conversion follows the trajectory of previous Grayscale products, it would likely lead to a repricing of LTCN shares toward their net asset value.

## Sources

- [Crypto Briefing](https://cryptobriefing.com/grayscale-litecoin-trust-etf-filing/)

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Published by CryptoResearch. Canonical version: https://cryptoresearch.news/news/grayscale-files-to-convert-litecoin-trust-into-spot-etf