Crypto asset manager Grayscale has filed a series of applications with the U.S. Securities and Exchange Commission (SEC) to convert its existing trusts for Bitcoin Cash, Hedera, and Litecoin into exchange-traded funds (ETFs). The firm plans to list these new ETFs on major exchanges like NYSE Arca or Nasdaq, following the same successful strategy it used to convert its Bitcoin and Ethereum trusts in 2024.
These filings come amid a wave of proposals from various issuers for new altcoin ETFs. While Grayscale is optimistic, the SEC has already delayed its decision on Grayscale’s Hedera ETF and Bitwise’s Dogecoin ETF.
The primary benefit of converting these trusts into ETFs is to eliminate the price discrepancies common in closed-end trusts, which can trade at a premium or discount to their net asset value (NAV). An ETF’s open-end structure allows for the creation and redemption of shares, keeping its market price aligned with its NAV.
Grayscale’s legal victory over the SEC last year was a major factor that paved the way for the approval of spot Bitcoin and Ethereum ETFs in the U.S. Since their launch in early 2024, these Bitcoin ETFs alone have generated over $1.2 trillion in cumulative trading volume, highlighting the strong market demand for these investment products.
September 2025, Cryptoniteuae
