Grayscale has submitted new applications to the SEC seeking approval for exchange-traded funds (ETFs) for Bitcoin Cash, Hedera, and Litecoin. The applications aim to convert closed-end funds into open-end ETF structures.
Details of Grayscale’s ETF Applications
The documents presented to the SEC include S-1, S-3, and related papers designed to convert the Bitcoin Cash, Hedera, and Litecoin funds into ETFs. This approach is consistent with the process Grayscale followed in 2024 for its Bitcoin and Ethereum funds. According to the S-3 file, the funds will be eligible to trade on NYSE Arca if the SEC approves their 19b-4 application or meets general listing standards.
SEC Evaluation and Current Process
On the day of the applications, the SEC deferred decisions on Grayscale's spot Hedera ETF application and Bitwise's Dogecoin ETF application, indicating the regulatory body's ongoing review process for investment products based on altcoins. Grayscale had previously succeeded in a lawsuit against the SEC, leading to the approval of Bitcoin and Ethereum ETFs. Spot Bitcoin ETFs have been trading in the United States since January 2024, reaching a trading volume surpassing $1.2 trillion.
Impact on the Altcoin Market
The upcoming applications from Grayscale could mark the beginning of a new era in the altcoin market, contingent on the regulatory body's decision. This could significantly impact the future development and interest in altcoins within the investment community.
Grayscale's ETF applications highlight the growing interest in altcoins and may significantly influence the cryptocurrency market if these initiatives are approved by the SEC.
