Grayscale Bets Big: Litecoin ETF Could Launch by October as LTCN Trades at 6% Discount

Wall Street’s crypto gamblers might get a new toy this fall—Grayscale eyes a Litecoin ETF rollout by October, while its LTCN trust languishes at a 6% discount. Because nothing says ’institutional adoption’ like trading paper versions of digital silver at a loss.

The discount on LTCN shares hints at market skepticism—or maybe just hedge funds playing their usual games. Either way, Grayscale’s pushing forward, turning crypto volatility into fee-generating products faster than you can say ’regulatory arbitrage.’

Will this ETF actually attract fresh capital, or just recycle the same speculative money? Place your bets—the house always wins.

Litecoin Trust (LTCN) and the Case for Approval

Grayscale launched its Litecoin Trust (LTCN) in August 2020, and it now manages around $200 million. Hoffman explained how it currently trades on OTC markets and is priced at a 6% discount to net asset value—something he believes could offer a compelling arbitrage opportunity if the ETF is approved.

“If you like Litecoin at fair value, you got to love it at a 6% discount,” Hoffman told the crowd, explaining that such a spread WOULD likely vanish post-approval: “In the event that it does get approved, you’re essentially going to capture that discount, because ETFs will trade… very near intrinsic value.”

He also reflected on Grayscale’s Bitcoin trust journey, noting,

“When we were doing the bitcoin uplisting, we literally had the approval in hand, and GBTC was still trading at a 2% discount.”

His point? Market pricing doesn’t always catch up to regulatory milestones right away, but it eventually does.

Grayscale’s ETF Expansion Strategy

Beyond LTCN, Hoffman laid out a broader strategy centered around diversified exposure through products like the Grayscale Digital Large Cap Fund (GDLC), which holds five tokens in a single basket. “We’re coming up on the 240-day clock on that in July,” he said.

Seyffart added that GDLC’s discount has already narrowed sharply, from 45% to 11% in recent months, indicating growing optimism.

McClurg backed this trend as an investor himself: “I’m a big fan of it, and… I’m actually holding it, betting that it could get approved.”

Why Litecoin?

When asked why Litecoin could be a strong ETF candidate, Hoffman pointed to its position as “digital silver,” saying it offers a unique return pattern compared to Bitcoin and Ethereum. “The digital silver, the track record, the diversification of the owner base, all of that is interesting,” he noted.

He framed LTCN’s discounted pricing as a value play: “You can buy it on exchange at fair value… or you can buy it in this trust structure at a discount… If you expect these approvals, that discount is going to collapse to zero.”

Backing this optimism, Hoffman estimated potential inflows between $400 million and $500 million, based on Litecoin’s current market cap of around $7.5 billion and a rough benchmark of 5% institutional allocation.

“The other way to do it… LTCN is $200 million, GBTC was 28 billion when we came to market… you can triangulate off of that to figure out flows.”

Changing Regulatory Winds

Perhaps the most striking commentary came as Hoffman described a shift in SEC engagement. “It went from… very unfriendly but highly predictable… to… maybe a little bit less predictable, but highly certain.”

He said recent interactions have been unusually productive, especially around ethereum staking conversations. “The level of engagement is like nothing we’ve seen at any time before,” he said.

Seyffart wrapped up the discussion by noting that over 80 ETF filings are currently in the pipeline. But among all of them, Litecoin stood out. Caratori, echoing Hoffman, called Litecoin “the non-controversial part of this framework,” underlining its regulatory appeal.

Final Thoughts

Grayscale’s positioning of LTCN, its aggressive filing timeline, and the continued narrowing of discounts across its crypto trusts suggest that the market is preparing for a Litecoin ETF launch. If the October 10 deadline leads to approval, as Hoffman believes likely, investors holding LTCN today might find themselves well ahead of the curve.

In a space often dominated by speculation, the 2025 Litecoin Summit offered a rare dose of clarity—Litecoin’s moment in the ETF spotlight might finally be around the corner.

Also Read: Seyffart Bullish on Litecoin ETF, Projects 90% Odds of Approval