SEC makes its move and asks public for comments on Grayscale’s Litecoin ETF

The U.S. Securities and Exchange Commission asked the public to comment on a proposal for converting Grayscale's Litecoin trust into an exchange-traded product.In a filing on Thursday acknowledging NYSE Arca's filing, on behalf of Grayscale, the SEC asked for those comments to be filed 21 days after being published in the Federal Register. The agency could decide to approve, disapprove or "institute proceedings."NYSE Arca posted a 19b-4 filing last month for the "Grayscale Litecoin Trust," as well as for a "Grayscale Solana Trust." A 19b-4 filing is the second part of a two-step process for proposing a spot crypto ETF. Once the SEC acknowledges the filing, it will be published in the Federal Register, initiating the agency's approval process.Over the past few weeks, firms have flooded in with proposals from funds based on DOGE among other altcoins, seemingly in hopes that a change in leadership at the SEC could be friendlier to approve crypto ETFs.Following former crypto-wary SEC Chair Gary Gensler's exit last month, the agency's acting Chair Mark Uyeda picked fellow Republican Commissioner Hester Peirce to lead a crypto task force. Peirce said she plans to work on distinguishing which "crypto assets" are securities, potentially changing ways for firms to register, and work on providing clear statements when approving or disapproving exchange-traded products.The SEC previously approved the listing of spot Bitcoin ETFs in January 2024 and, later that year, spot Ethereum ETFs.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.