Grayscale files the registration step that would pull LTCN back to its net asset value

The September 11 amendment is the registration half of the job. Listing needs the 19b-4, the form that proposes the exchange rule change ^[6], and that one has been in front of the SEC for about nineteen and a half months ^[18]. The trust itself has sat over the counter for roughly eight years and eight months ^[19].

For a holder, conversion is a one-time gain followed by a recurring cost. Creation and redemption baskets let market makers arbitrage away significant premiums or discounts ^[5], and Grayscale's Bitcoin trust traded below net asset value for years before it converted in January 2024 ^[12]. The account of the filing does not include a recent market price for LTCN, so the size of the current gap is not on the record ^[21]. Take a ten-point discount as an illustration: against $82.28 million of net assets, that is about $8.2 million of difference between what the shares fetch and what they own ^[22], and at 2.5% a year, closing it is worth about four years of the sponsor fee ^[20].

One ending: the SEC clears the rule change and the shares reprice toward net asset value, which is what Grayscale's own Bitcoin and Ethereum conversions did ^[14]. A second: the review extends again and the S-3/A is housekeeping against a date nobody has ^[8]. A third: approval lands while the outflow continues, so what lists is a fund small enough that the annual fee, not the discount, is what a holder pays attention to.

I would expect the conversion to clear and the discount to close, because Grayscale has run this template through Bitcoin and Ethereum already ^[12] and has signed a prime brokerage agreement with Coinbase to handle creation and redemption once trading starts ^[9]. The counter-thesis is cheaper to hold: the rule change is still pending, and the money left anyway ^[11]. An order on the 19b-4 settles the question. If one comes and the shares do not converge on the $3.39 a share the trust reported on June 30 ^[4], then the discount was never what was keeping buyers away.