US SEC Seeks Public Comments on Grayscale’s Litecoin ETF Proposal

The U.S. Securities and Change Fee (SEC) has invited public feedback on a proposal to transform Grayscale’s Litecoin Belief into an exchange-traded product (ETP). The request follows an official acknowledgment of NYSE Arca’s 19b-4 submitting, submitted on behalf of Grayscale.

US SEC Requires Feedback on Grayscale Litecoin ETF

The SEC has opened a public remark interval concerning the proposed conversion of Grayscale’s Litecoin Belief into an ETF. The company acknowledged NYSE Arca’s submitting and has requested feedback to be submitted inside 21 days of the proposal’s publication within the Federal Register.

NYSE Arca had beforehand submitted a 19b-4 submitting, a obligatory step within the crypto ETF approval course of. This submitting pertains to each the Grayscale Litecoin Belief and the Grayscale Solana Belief. The SEC’s determination will contain both approval, disapproval or the initiation of additional proceedings.

This growth follows a current transfer by high asset managers to expand crypto ETF choices. Grayscale filed a 19b-4 type to transform its Litecoin Belief into an ETF, whereas Coinshares submitted an S-1 type for an LTC ETF. The US SEC determination may form the way forward for Litecoin funding merchandise within the U.S.

Crypto ETF Filings Improve Amid Management Transition

In current weeks, a number of corporations have submitted proposals for crypto-based ETFs, together with funds for Dogecoin (DOGE) and different altcoins. The rise in filings comes at a time when the US SEC is present process a management transition.

Late final month, the asset supervisor additionally filed for a Solana ETF earlier than submitting its Spot XRP ETF application. Grayscale goals to transform its XRP Belief, which holds $16 million in property, into an ETF listed on the NYSE. This submitting makes Grayscale the seventh asset supervisor to hunt SEC approval for an XRP ETF.

Following the departure of former SEC Chair Gary Gensler, performing Chair Mark Uyeda appointed Commissioner Hester Peirce to supervise a devoted crypto job pressure. Peirce has expressed curiosity in refining the classification of crypto property and adjusting the registration course of for digital asset corporations.

Crypto ETFs and Market Developments

The SEC beforehand accredited spot Bitcoin ETFs in January 2024, marking a shift within the company’s regulatory method. Later that 12 months, the fee additionally greenlit spot Ethereum ETFs, signaling a broader acceptance of crypto-based funding merchandise.

With the continuing assessment of the Grayscale Litecoin ETF, traders anticipate the US SEC will prolong comparable approvals to altcoin-based ETFs. The choice may set a precedent for future filings involving numerous digital property.

The SEC will consider public suggestions earlier than making a closing dedication on Grayscale’s Litecoin Belief conversion. The assessment course of contains regulatory scrutiny of market dangers, investor protections, and compliance with present securities legal guidelines.

After the general public remark interval ends, the company could both approve the applying, reject it, or provoke additional proceedings for an in-depth evaluation.

In the meantime, Grayscale additionally not too long ago launched its Dogecoin Trust, offering institutional traders with publicity to DOGE. The Belief is now open for day by day subscriptions to accredited traders and operates equally to Grayscale’s different single-asset funding trusts. This growth has sparked hypothesis a couple of potential DOGE ETF submitting sooner or later.