- Grayscale seeks to convert Litecoin and Bitcoin Cash Trusts to ETFs.
- The filings include a new ETF proposal for Hedera.
- Regulatory review pending, contingent on SEC’s standards approval.
Grayscale Investments has submitted filings to the SEC to transform its Bitcoin Cash and Litecoin Trusts into ETFs and proposes a new Hedera ETF as of September 2025.
This move reflects Grayscale’s strategy to expand crypto ETF offerings, potentially increasing spot market demand and further institutional involvement if approved by regulators.
Grayscale’s Strategic Expansion
Grayscale has submitted new SEC filings to convert its Litecoin and Bitcoin Cash Trusts into ETFs and filed for a new Hedera ETF proposal. This move indicates a strategic effort to expand crypto ETF offerings in the United States.
Partnership Roles and Impact
Grayscale Investments, led by CEO Michael Sonnenshein, is behind the new filings. Bank of New York Mellon is designated as the Trusts’ administrator, while Coinbase acts as the prime broker and custodian for these crypto assets.
Implications of ETF Approval
The ETF conversion aims to simplify investment access for retail and institutional investors, likely increasing spot buying demand. Approval of these ETFs could streamline digital asset investments across the U.S., but the proposals are contingent on SEC’s regulatory standards.
Potential Market Repercussions
If approved, these ETF conversions could influence sentiment and demand for altcoins. Historical trends show a significant impact on assets after similar events, as observed with Grayscale’s previous Bitcoin Trust conversion, which saw substantial inflows and market stabilization.
“We are committed to expanding access to digital assets and believe that our efforts with Litecoin, Bitcoin Cash, and Hedera underpin a broader movement towards democratizing cryptocurrency investment.” — Michael Sonnenshein, CEO, Grayscale Investments
