Grayscale Pushes SEC to Convert Bitcoin Cash, Hedera, and Litecoin Trusts into ETFs in Bold Crypto Move

Grayscale just dropped another bombshell on the SEC—filing to convert three more single-asset trusts into ETFs. Bitcoin Cash, Hedera, and Litecoin are now in the spotlight.

Why It Matters

This isn’t just paperwork—it’s a power play. Converting trusts into ETFs means easier access, deeper liquidity, and another step toward mainstream adoption. Grayscale’s pushing hard to democratize crypto exposure, whether the old guard likes it or not.

Behind the Move

Grayscale’s betting big on regulatory momentum. After Bitcoin ETF successes, expanding into altcoins signals confidence—or sheer stubbornness. The SEC’s response will set the tone for mid-cap crypto acceptance.

Bottom Line

More ETFs mean more options—and more ammunition for the ‘crypto is legit’ crowd. Sure, Wall Street might still roll its eyes, but if approvals roll in, even the skeptics might finally stop calling it ‘magic internet money.’ Maybe.

Crypto firms seek SEC’s approval for ETFs connected to altcoins

Concerning Grayscale’s filings with the SEC on its Litecoin ETF, its S-3 filing document states that this prospectus assumes that the commission has either had the 19b-4 application approved or has established general listing regulations that guarantee the Trust’s shares to be among those listed on NYSE Arca. 

This follows a growing trend among crypto companies seeking approval for ETFs connected to altcoins. This includes Dogecoin and XRP. Meanwhile, reports from reliable sources have pointed out that earlier on Tuesday, September 9, the SEC had postponed its decision on Bitwise’s spot Dogecoin ETF and Grayscale’s spot Hedera ETF.

On the other hand, Grayscale’s Bitcoin Cash trust has demonstrated exemplary results. According to the filing, its net asset value recorded figures exceeding $202 million with its shares priced at $4.31 each on June 30.

Notably, a high-performance difference exists between a closed-end trust and an ETF. A closed-end trust can conduct trades for more or less than its net asset value; however, an ETF purchases and sells assets depending on the demand in the market. Additionally, it has an open-end structure that develops and redeems shares to maintain prices close to the net asset value. 

Earlier, Grayscale filed a lawsuit against the SEC for rejecting its proposal to convert its trust. Concerning this, analysts have anticipated that this could be a significant reason behind the commission’s reaction to permit Bitcoin and ethereum ETFs later to carry out trade in the US.

According to data from reliable sources, since they started operating in the US in January 2024, spot bitcoin ETFs have reached their highest overall trading volume, recording figures exceeding 1.2 trillion.

The US SEC delays Bitwise’s Dogecoin ETF approval 

REX Shares and Osprey Funds were reportedly making arrangements to launch their dogecoin ETF this week. However, on Tuesday, September 9, the SEC postponed their decision on Bitwise’s Dogecoin ETF. 

In a filing, the commission mentioned that their abrupt delay was to gather more time to examine whether to approve or reject a proposed rule change that could permit Bitwise to list a meme coin as an ETF tracking. 

Apart from Bitwise’s Dogecoin ETF facing delays recently, it is worth noting that its proposed Doge fund was also subjected to delays back in June. On the contrary, REX Shares and Osprey Funds’ Dogecoin ETF will commence trading activities on Thursday, September 11, having adopted a completely different approach for its listing.

In an X post, Analyst Eric Balchunas commented on the situation. According to him, the Thursday DOGE launch signifies an entry to an era of meme coin ETFs, despite being under the 40 Act. Balchunas further anticipated that this WOULD be the first-ever US ETF to hold something that does not entail practical use.

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