The U.S. Securities and Exchange Commission (SEC) has initiated a public comment process for Grayscale’s proposed conversion of its Litecoin Trust into an exchange-traded fund (ETF). This follows the agency’s official acknowledgment of NYSE Arca’s 19b-4 filing, which outlines the request for listing the ETF.
SEC Acknowledges Grayscale Litecoin ETF
Stakeholders and the public have been given a 21-day window from the proposal’s publication in the Federal Register to submit comments. The SEC will later decide whether to approve, reject, or extend its review of the application.
NYSE Arca’s filing not only covers Grayscale’s Litecoin Trust but also includes the Grayscale Solana Trust, marking a broader push for regulated crypto investment products. The agency’s decision on these proposals could influence how crypto-based ETFs evolve in the U.S.
A wave of new crypto ETF filings has emerged in recent weeks, including applications for funds based on Dogecoin (DOGE) and other alternative cryptocurrencies. The increasing number of submissions coincides with changes in SEC leadership.
Grayscale recently submitted a 19b-4 filing for its Litecoin ETF while CoinShares filed an S-1 form for a similar Litecoin investment vehicle. Additionally, Grayscale’s application for a Solana ETF was followed by a request to convert its XRP Trust into an ETF, which holds $16 million in assets. This move makes Grayscale the seventh firm seeking SEC approval for a spot XRP ETF.
The agency is currently undergoing a transition in leadership. After the departure of former Chair Gary Gensler, acting Chair Mark Uyeda appointed Commissioner Hester Peirce to lead a crypto-focused task force. Peirce has advocated for changes in how crypto assets are classified and the registration process for digital asset companies.
With the U.S. SEC reviewing multiple crypto ETF proposals, market participants are closely watching how the regulator approaches these applications under its changing leadership.
Also Read: Dogecoin Eyes $1: Will ETF Approval Make It Happen?
Source: https://www.cryptonewsz.com/sec-public-feedback-grayscale-litecoin-etf/