Grayscale, the well-known manager of crypto investment funds, recently filed a series of documents with the U.S. Securities and Exchange Commission (SEC). The company aims to get approval for new exchange-traded funds (ETFs). These new ETFs would track the value of Bitcoin Cash (BCH), Hedera (HBAR), and Litecoin (LTC). This move follows a successful playbook Grayscale used earlier this year for Bitcoin and Ethereum.
The filings propose turning Grayscale’s current private trusts for these cryptocurrencies into public ETF structures. This strategy mirrors what Grayscale did in 2024 to convert its Bitcoin and Ethereum funds into publicly traded products. The company hopes these new funds will trade on major exchanges like NYSE Arca or Nasdaq.
How Conversions Work
Private trusts often trade at prices that don’t quite match the value of the assets they hold. This can lead to big differences, meaning investors might buy shares for less or more than their true worth. ETFs, on the other hand, have a more open design. Shares are created and removed constantly. This process helps keep the ETF’s price very close to the actual value of the underlying assets. It offers investors more transparency and easier trading.
Facing Regulatory Roadblocks
Interest in launching ETFs for other cryptocurrencies, often called “altcoins,” has grown in 2024 and 2025. Many companies have asked for approvals for assets like Dogecoin and XRP. However, the SEC has been very cautious. They have delayed every one of these applications until the very last possible moment.
The SEC continues to carefully study if it should allow more ETFs beyond Bitcoin and Ethereum. Despite these delays, the companies pushing for these products remain determined. They want to attract new investors who wish to diversify their portfolios with alternative digital assets. Interestingly, Grayscale’s Litecoin filing was prepared assuming the SEC had already approved a key rule or listing standards for NYSE Arca. This shows Grayscale’s firm belief that the regulatory environment will eventually become more flexible for these new crypto products.
Money Matters for These Trusts
The latest documents show that Grayscale’s Bitcoin Cash trust held over $202 million in assets as of June 30. That’s about $4.31 per share. These figures highlight the size of the existing fund. They also support the idea of making it an ETF, which could be more appealing to investors. Grayscale believes converting these products into ETFs will help reduce price differences and offer investors better liquidity and clear pricing.
The Bitcoin and Ethereum Success Story
Grayscale’s persistence in this area isn’t random. The company won a major legal battle against the SEC in 2023. The agency had initially rejected Grayscale’s plan to turn its Bitcoin trust into an ETF. This victory eventually opened the door for the first spot Bitcoin ETFs to launch in January 2024. That event was a big moment for the U.S. financial system.
Since their launch, Bitcoin ETFs have seen more than $1.2 trillion in trading volume, according to figures from The Block. This success then led to the approval of Ethereum ETFs. It suggests that if regulators become more open, other digital assets could follow suit.
Grayscale is now trying to repeat its success with Bitcoin Cash, Hedera, and Litecoin. This move could bring more choices to the crypto ETF market in the United States. While the SEC is still moving slowly and delaying important decisions, Grayscale seems set on broadening the range of these financial products. They are betting that investor interest will push the industry forward.