Grayscale, one of the largest crypto asset management firms, just filed with the SEC to create a Litecoin and Solana ETF. It also filed for other crypto-related ETF products.
The firm’s “Bitcoin Adopters ETF” and synthetic Ethereum ETF are part of a massive surge in SEC applications since Gary Gensler resigned. It is presently unclear which, if any, of these products will meet regulatory approval.
Grayscale Continues the ETF Race
Compared to other cryptoassets, the race to create a Litecoin ETF has been subdued. The Nashville-based Canary Capital made the first filing in October, but few others have followed suit.
The SEC has been giving more signals that it may approve a Litecoin fund, and Nasdaq filed to list it if approved. Today, Grayscale became the second firm to file for a Litecoin ETF.
Although Litecoin’s price recently soared due to ETF rumors, Grayscale’s application has yet to move the needle much. This price spike quickly subsided after the ETF approval did not go through, and the market may be shy to raise its hopes again.
However, there might be other reasons why the Litecoin market lacks any notable movement. For instance, the network has seen very few upgrades and technical advancements compared to the other blockchains.
Meanwhile, Grayscale also filed for 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 novel idea:
“Grayscale filed for a ‘Bitcoin Adopters ETF.’ Here are the strategy details: it will be an equity ETF that holds the stock of companies that hold Bitcoin as a 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 firm may have pioneered the race for a Bitcoin ETF, yet its products have been consistently dominated in the market by other ETF issuers.
This synthetic Ethereum ETF and Bitcoin Adopters ETF may be further attempts to scrape the bottom of the barrel. For now, it is unclear which (if any) of these products will pass regulatory scrutiny. Since Gary Gensler resigned, many firms have filed their own applications, including some dubious meme coin ETFs.
If Grayscale is successful in creating this tranche of ETF offerings, it will probably face another highly competitive market.
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