Grayscale Pushes Litecoin and Bitcoin Cash Trusts Toward NYSE Arca, Fees Still Blank

Both vehicles are taking different regulatory routes onto the exchange, and neither route has cleared the SEC.

September 14, 2026

Grayscale Investments has moved two more of its legacy over-the-counter crypto trusts a step closer to exchange listing, filing first amendments to the registration statements for Grayscale Litecoin Trust (LTC) and Grayscale Bitcoin Cash Trust (BCH) on September 11, 2026. On effectiveness, the sponsor intends to rename the vehicles Grayscale Litecoin Trust ETF and Grayscale Bitcoin Cash Trust ETF and list their shares on NYSE Arca under LTCN and BCHG — the same tickers the shares already carry on OTCQX.

The move follows the conversion path the sponsor is already running at its Zcash vehicle, and reaches two of the six Grayscale registrants whose finance leadership changed hands earlier this year.

The discount is the story

Both trusts were sold through periodic private placements to accredited investors under Regulation D and have traded on OTCQX ever since — without a redemption program, and subject to a Rule 144 holding period on newly issued shares. The sponsor points to both features as reasons the quoted price has spent years detached from the value of the tokens behind it.

Between August 18, 2020 and June 30, 2026, the two vehicles diverged sharply in how far they strayed:

• Litecoin (LTCN) — maximum premium 5,893%, average premium 592%; maximum discount 67%, average discount 26%; closed at a discount on 802 business days.
• Bitcoin Cash (BCHG) — maximum premium 1,852%, average premium 239%; maximum discount 59%, average discount 18%; closed at a discount on 864 business days.

The Bitcoin Cash trust spent more days below NAV despite the narrower average gap. Recent readings have moved in opposite directions: the Litecoin trust closed June 30, 2026 at $3.09, a 7% discount, and September 9, 2026 at $4.01, an 8% discount. The Bitcoin Cash trust closed at $1.48 on June 30, a 9% discount, and $1.96 on September 9, a 5% discount.

Grayscale expects those spreads to close. The sponsor anticipates the market price will approximate NAV per share immediately before the NYSE Arca listing and converge with it afterward, producing net creations when shares trade above NAV and net redemptions when they trade below.

The machinery behind that expectation

Convergence depends on plumbing neither trust has had. Each reinstates its redemption program on the effective date of its registration statement and intends to rely on an exemption or other relief from the SEC under Regulation M to operate it. Authorized participants will transact in baskets of 10,000 shares.

Neither trust can currently create or redeem in kind. Both are limited to cash orders, under which a liquidity provider that is not an agent of the authorized participant sources or receives the underlying tokens, and the authorized participant pays a variable fee set to cover that provider’s execution costs; the sponsor may instead require an order to be effected at actual execution prices. Grayscale notes that the SEC has approved orders permitting in-kind creations and redemptions for certain spot digital asset exchange-traded products, and that NYSE Arca may seek to amend its listing rules so these trusts can use them. Neither prospectus commits to when, or whether, that happens.

The fee is still blank

One material term is missing from both documents. Each trust’s only expected ordinary recurring expense is the sponsor’s fee, which accrues daily in dollars and is payable monthly in arrears in the underlying token. The annual rate is left blank in both prospectuses. Until a later amendment supplies it, the converted funds’ cost to shareholders is undetermined. The sponsor retains discretion to waive all or part of the fee but states it does not presently intend to, and has identified no circumstances under which it definitely would.

Two routes onto the same exchange

The amendments describe different regulatory paths to listing:

• The Litecoin document rests on a trust-specific rule change NYSE Arca submitted on January 24, 2025, which the prospectus states has not been approved.
• The Bitcoin Cash document points instead to NYSE Arca’s July 30, 2025 proposal for new Rule 8.201-E — a generic listing standard that would let qualifying commodity-based exchange-traded products list without a separate application. The sponsor believes the trust would qualify if adopted; that proposal is likewise described as unapproved.

Both prospectuses are written on the assumption that the relevant approval has been obtained, and neither trust will seek effectiveness until it is — or until the trust determines it is no longer necessary. Each amendment carries a delaying amendment, leaving the timing with the Commission.

Structure and service providers

The operating architecture is identical across both. Grayscale Investments Sponsors, LLC, a consolidated subsidiary of Digital Currency Group, sponsors each Delaware statutory trust. CSC Delaware Trust Company is trustee, and The Bank of New York Mellon serves as both transfer agent and administrator. Coinbase, Inc. is prime broker and Coinbase Custody Trust Company, LLC is custodian — an arrangement each prospectus flags as a concentration risk, since the same firm supports competing exchange-traded products in the same tokens.

Pricing runs off CoinDesk Indices benchmarks — the CoinDesk Litecoin Benchmark Rate and the CoinDesk Bitcoin Cash Benchmark Rate — calculated at 4:00 p.m. New York time each business day from a panel of twelve trading platforms. The index provider may change constituents or methodology without notice to or consent from either trust, and the sponsor may switch providers or fall back to a cascading set of pricing rules at its discretion.

Token backing per share is thin on both. As of June 30, 2026, each Litecoin trust share represented approximately 0.0812 LTC and each Bitcoin Cash trust share approximately 0.0081 BCH. Those amounts decline as tokens are transferred out to pay the sponsor’s fee and any expenses the sponsor has not assumed — which, under grantor trust treatment, is a taxable event for shareholders each time it occurs.

Both trusts register an indeterminate number of shares on a delayed or continuous basis, and both remain emerging growth companies, non-accelerated filers and smaller reporting companies — a combination that keeps their disclosure obligations lighter than those of a seasoned listed issuer.

Chief executive Peter Mintzberg, interim chief financial officer Kathryn Masci and chief legal officer Craig Salm signed both registration statements on behalf of the sponsor. Davis Polk & Wardwell LLP is counsel on each.