Grayscale Pushes to Convert Litecoin Trust 'LTCN' ETF

Asset manager Grayscale has submitted an amended application to the U.S. Securities and Exchange Commission (SEC) to transition its Litecoin Trust 'LTCN' into a spot exchange-traded fund (ETF). According to blockchain media CoinPost, if approved and listed, the product will be renamed 'Grayscale Litecoin Trust ETF,' with plans for listing on the NYSE Arca.

LTCN is currently issued only as a private offering and trades over-the-counter under the ticker 'LTCN.' Grayscale previously submitted an S-3 filing in September 2025, but the SEC has yet to approve it. As a result, the structural shift from trust to ETF remains incomplete.

The main challenge lies in asset size. Due to Litecoin's price decline, the trust's net asset value (NAV) dropped from approximately $175.9 million as of June 2025 to around $82.3 million by June 2026. The NAV per share also fell from about $7.25 to roughly $3.39.

Market price has lagged behind NAV, with LTCN closing at $4.01 on September 9, trading at an 8% discount to NAV. Since the trust does not operate a redemption program, arbitrage mechanisms that typically narrow the gap between share supply and underlying asset prices are absent. Converting to ETF could alleviate this structural discount.

The listing process is ongoing. NYSE Arca submitted a 19b-4 rule amendment in January 2025 to enable listings, but new general listing standards have rendered the previous review timeline less relevant. As of September 2026, no official announcement has been made. Bloomberg analyst estimates a 100% likelihood of approval based on the September 2025 filing.

Competitor products have already launched: Canary Capital’s Litecoin spot ETF 'LTCC' listed on October 28, 2025, following earlier launches of XRP and Dogecoin spot ETFs in September 2025. XRP and Solana spot ETFs are also currently active. Bitwise’s Dogecoin spot ETF received NYSE Arca approval in November 2025 but ceased operations in September 2026.

Given this context, Grayscale's Litecoin ETF conversion is a late entry. The focus now shifts to whether the SEC will approve the change and if converting from trust structure to ETF can effectively address pricing discrepancies and liquidity challenges, potentially attracting capital flows as a new entrant in the market.