Grayscale, one of the largest crypto asset managers, recently filed with the SEC to establish an ETF for Litecoin and Solana. They also filed for other crypto-related ETF products.
The company’s “Bitcoin Adopters ETF” and synthetic Ethereum ETF are part of a surge in SEC filings since Gary Gensler stepped down. It is unclear which of these products will receive regulatory approval.
Grayscale Continues the ETF Race
Compared to other crypto assets, the race to create a Litecoin ETF has been quiet. Nashville-based Canary Capital made the initial filing in October, but few other firms followed suit.
The SEC has given more signals about possible approval of a Litecoin fund, and Nasdaq has applied for a listing if approved. Today, Grayscale becomes the second company apply for Litecoin ETF.
While Litecoin’s price has recently skyrocketed due to ETF rumors, Grayscale’s application has yet to make much of an impact. This rally quickly waned after the ETF was not approved, and the market may hesitate to get its expectations too high again.
However, there may also be other reasons why the Litecoin market has not experienced significant fluctuations. For example, this network has had very few updates and technical advancements compared to other blockchains.
Meanwhile, Grayscale also apply for many other ETF products, including the Solana ETF. According to one chain of events Compiled by Bloomberg analyst James Seyffart, Grayscale is creating a synthetic staking product from Ethereum Trust and Mini Trust, along with a new idea:
“Grayscale has filed for a ‘Bitcoin Adopters ETF.’ Here are the strategy details: it will be an equity ETF holding shares of companies that hold Bitcoin as part of the corporate treasury,” Seyffart confirm.
In short, Grayscale prioritized filing for the Litecoin product, but also filed for three other ETF products in the same afternoon. The company may have pioneered the race to create a Bitcoin ETF, but its products are often dominated in the market by other ETF issuers.
The synthetic Ethereum ETF and Bitcoin Adopters ETF could be the next attempts to compete for market share. Currently, it is unclear which of these products will pass regulatory scrutiny. Since Gary Gensler stepped down, many companies have filed their own, including some questionable meme coin ETFs.
If Grayscale is successful in creating this series of ETF products, it will likely face an even more competitive market.
