Grayscale, one of the largest crypto asset management companies, just filed with the SEC to create a Litecoin and Solana ETF. It has also filed for other crypto-related ETF products.
The company’s “Bitcoin Adopters” ETF and synthetic Ethereum ETF are part of a massive surge in SEC filings since Gary Gensler’s resignation. It is currently unclear which, if any, of these products will be approved by regulatory authorities.
Grayscale continues the ETF race
Compared to other cryptoassets, the race to create a Litecoin ETF has been moderate. Nashville-based Canary Capital made the first filing in October, but few others followed suit.
The SEC has given more signals that it may approve a Litecoin fund, and Nasdaq has filed for a listing if approved. Today, Grayscale became the second company to file for a Litecoin ETF.
Although the price of Litecoin has skyrocketed recently due to ETF rumors, Grayscale’s app has yet to shake things up much. This price surge quickly subsided after the ETF’s failed approval, and the market may be hesitant to revive its hopes.
However, there may be other reasons why the Litecoin market is not seeing any notable movement. For example, the network has seen very few upgrades and technical advancements compared to other blockchains.
Meanwhile, Grayscale has also filed several other ETF products, including a Solana ETF. According to a thread compiled by Bloomberg analyst James Seyffart, Grayscale is creating a product based on a synthetic position of its Ethereum Trust and Mini Trust, as well as a new idea:
“Grayscale has filed for a “Bitcoin Adopters ETF.” Here are the details of the strategy: It will be an equity ETF that will hold the shares of companies that hold Bitcoin as part of their corporate treasury,” Seyffart claimed.
In short, Grayscale prioritized filing for a Litecoin product, but it also applied for three other ETF products in the same afternoon. The company may have been a pioneer in the Bitcoin ETF race, but its products have always been dominated in the market by other ETF issuers.
This synthetic Ethereum ETF and Bitcoin Adopters ETF could be further attempts to scrape the bottom of the barrel. At this time, it is unclear which of these products (if any) will pass regulatory review. Since Gary Gensler’s resignation, many companies have filed their own applications, including questionable coin ETFs.
If Grayscale succeeds in creating this tranche of ETF offerings, it will likely face another highly competitive market.
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