Grayscale Files SEC Registration for Hedera ETF and Trust Offerings in Litecoin, BTC Cash
Grayscale Investments, one of the world’s largest digital asset managers, has taken another step in its effort to bring cryptocurrency products into the mainstream financial system. The company has filed new registration statements with the U.S. Securities and platform Commission (SEC), signaling its intent to broaden investor access to regulated crypto investment vehicles. The filings include a Form S-1 for a proposed Hedera (HBAR) platform-traded fund (ETF) and separate Form S-3 submissions for the Grayscale Litecoin Trust (LTC) and the Grayscale BTC Cash Trust (BCH).
Expanding investor pathways
The S-1 filing for the Grayscale Hedera Trust ETF represents the initial step in creating a publicly tradable fund that would provide investors with direct exposure to Hedera’s native token, HBAR. If approved, the ETF would function in a manner consistent with traditional platform-traded products, including the use of daily creations and redemptions of shares backed by HBAR. This structure is designed to keep the ETF closely aligned with the market price of the underlying token, while offering a regulated vehicle for investors who may prefer exposure through a traditional brokerage account.
The inclusion of Hedera is significant, as it highlights Grayscale’s strategy of moving beyond major assets like BTC and ETH to embrace a broader set of blockchain networks. Hedera, known for its hashgraph consensus and enterprise partnerships, has long positioned itself as a scalable and energy-efficient alternative within the distributed ledger ecosystem. An ETF dedicated to HBAR would mark one of the first attempts to bring a more niche protocol into regulated investment channels.
In parallel with the Hedera application, Grayscale submitted Form S-3 registrations for its existing Litecoin and BTC Cash trusts. Unlike an S-1, which applies to new securities, an S-3 is a streamlined process available to seasoned issuers. It allows for the quicker registration of additional securities and can facilitate potential platform listings. For Grayscale, these filings could represent a step toward transforming its single-asset trusts into more liquid, platform-traded structures, improving market accessibility for retail and institutional investors alike.
Regulatory and market implications
The timing of these filings comes as the SEC continues to grapple with how best to regulate crypto-based financial products. Earlier this year, Grayscale achieved a landmark victory by converting its flagship BTC Trust into a spot ETF, a move that opened the door for similar products tied to other cryptocurrencies. By extending this regulatory push to Hedera, Litecoin, and BTC Cash, the company is signaling confidence that investor demand extends well beyond the two largest digital assets.
While approval of these filings remains uncertain and will depend heavily on the SEC’s evolving stance, the submissions highlight Grayscale’s continued effort to bridge the gap between crypto markets and traditional finance. If successful, the Hedera ETF and the expanded trust offerings could broaden the menu of compliant investment products available to U.S. investors. This would also mark another milestone in the institutionalization of digital assets, potentially setting a precedent for other blockchain networks viewking regulated investment exposure.
For now, the filings underscore both the opportunities and challenges of integrating cryptocurrencies into mainstream financial structures. Should the SEC grant approval, Grayscale’s latest offerings could pave the way for a new wave of investor participation in alternative blockchain ecosystems, further cementing the role of digital assets within diversified portfolios.
