Grayscale Expands ETF Options with Bitcoin Cash Filing

Grayscale is taking significant steps to broaden its range of exchange-traded funds (ETFs). The investment firm has filed for the first-ever Bitcoin Cash ETF with the U.S. Securities and Exchange Commission (SEC), along with two additional filings.

Key Takeaways

Grayscale has submitted a filing for the first Bitcoin Cash ETF with the SEC.
The new Bitcoin Cash ETF will be listed on NYSE Arca, with support from Bank of New York Mellon and Coinbase.
Grayscale has also filed for a Litecoin ETF and a Hedera ETF, using different registration forms.
More than 70 crypto ETF applications are pending with the SEC, indicating growing demand for regulated cryptocurrency access.
Industry optimism remains high despite regulatory delays, especially for major altcoins.

Bitcoin Cash joins ETF lineup as Grayscale submits fresh filings - 1

Grayscale Investments has officially submitted new filings to the SEC, looking to enhance its ETF offerings with a Bitcoin Cash ETF and funds linked to Litecoin and Hedera (HBAR).

Main Content

Grayscale Investments has taken a bold step by submitting new documents to the U.S. Securities and Exchange Commission (SEC) as it aims to expand its range of exchange-traded fund (ETF) offerings.

The firm has filed a Form S-3 registration for its Bitcoin Cash bch-0.12% Bitcoin Cash Trust. This marks the first official SEC filing for a Bitcoin Cash ETF. According to the documentation, if approved, the proposed ETF will be listed on the NYSE Arca. The Bank of New York Mellon will handle the administration of the Trust, while Coinbase will serve as both the prime broker and custodian for the fund.

In a similar vein, Grayscale has also submitted an S-3 form for a Litecoin ltc0.07% Litecoin ETF. This filing aims to convert its Litecoin Trust into an ETF structure. Like the Bitcoin Cash filing, this fund would also go public on NYSE Arca if it gains approval. Grayscale is not alone in this effort, as it joins other firms such as Canary and CoinShares that are also seeking approval for Litecoin ETFs.

The third filing from Grayscale relates to the Hedera (HBAR) token, although it takes a different approach. Grayscale registered its HBAR ETF using Form S-1, putting it in competition with a few select firms like Canary Capital that are also on the waitlist. Notably, Nasdaq has already submitted a 19b-4 proposal for listing the HBAR ETF, but it has not yet received approval. The SEC has recently postponed its decision on the proposal, pushing the deadline for a decision to November 12. By that date, the regulatory body is expected either to approve or deny the proposed rule change that would permit the ETF to trade on Nasdaq.

Typically, the SEC has 180 days to approve a proposed change to an exchange rule under U.S. securities law. However, it can extend this period by an additional 60 days to allow for comments or amendments before coming to a final decision.

Grayscale mentioned that its Litecoin and Bitcoin Cash filings align with the proposed Generic Listing Standards, which the SEC has yet to approve. If these standards are adopted, certain ETFs may be able to list without going through the usual individual rule-change proposals, offering Grayscale a potential quicker route to approval rather than launching the conventional 19b-4 filing process.

These latest filings contribute to Grayscale's growing list of applications for gaining ETF status for other altcoins. Earlier this week, the firm submitted a filing to convert its Chainlink Trust into a spot ETF and currently has pending applications connected to Dogecoin doge-1.57% Dogecoin, Ripple XRP xrp-0.77% XRP, Avalanche avax5.3% Avalanche, among others.

Presently, there are over 70 crypto ETF applications from various issuers pending with the SEC, signifying a broader industry initiative to expand regulated access to digital assets. This trend is not confined to the U.S.; there is also increasing institutional and retail demand for exposure to altcoins globally.

Despite some regulatory delays, the overall momentum and optimism within the industry remain robust, with significant altcoins like Solana, Ripple, Cardano, and Dogecoin being viewed as having strong prospects for approval.