Grayscale has recently submitted new applications to the SEC seeking approval for exchange-traded funds (ETFs) for Bitcoin $113,574 Cash (BCH), Hedera (HBAR), and Litecoin (LTC). The company intends to transform its closed-end funds into open-end ETF structures. The applications have been prepared for listing on New York-based exchanges, NYSE Arca and Nasdaq.
Details of Grayscale’s ETF Applications
The documents presented to the SEC, including S-1, S-3, and related papers, are designed to convert the Bitcoin Cash, Hedera, and Litecoin funds into ETFs. This approach is consistent with the process Grayscale followed in 2024 for its Bitcoin and Ethereum $0.000081 funds. According to the S-3 file, the funds will be eligible to trade on NYSE Arca if the SEC approves their 19b-4 application or meets the general listing standards.
As per the application files, as of June 30, Grayscale’s Bitcoin Cash fund holds net assets exceeding $202 million, with a unit price recorded at $4.31. It was highlighted that closed-end funds can trade at a premium or discount relative to their net asset value, whereas ETFs can issue new shares depending on demand to keep the price close to the net asset value.
SEC Evaluation and Current Process
On the day of the applications, the SEC deferred decisions on Grayscale’s spot Hedera ETF application and Bitwise’s Dogecoin $0.034058 ETF application. This indicates the regulatory body’s ongoing review process for investment products based on altcoins .
Grayscale had previously succeeded in a lawsuit against the SEC, which led to the approval of Bitcoin and Ethereum ETFs. Spot Bitcoin ETFs have been trading in the United States since January 2024, reaching a trading volume that has surpassed $1.2 trillion. Grayscale’s upcoming applications could mark the beginning of a new era in the altcoin market, contingent on the regulatory body’s decision.
