Litecoin ETF Set to Hit Nasdaq for Easier Crypto Investing
Published Date: 2/25/2025
Notice
Summary
Nasdaq wants to start trading shares of the CoinShares Litecoin ETF, a new fund tied to Litecoin cryptocurrency, under its special commodity rules. This means investors can buy and sell Litecoin-based shares on Nasdaq soon, making crypto investing easier and more official. The SEC is reviewing this change and asking for public feedback before it goes live.
Analyzed Economic Effects
5 provisions identified: 2 benefits, 2 costs, 1 mixed.
Buy Litecoin Exposure on Nasdaq
You will be able to buy and sell shares of the CoinShares Litecoin ETF on Nasdaq that are designed to reflect the U.S. dollar value of one Litecoin (LTC) as measured by the Compass Crypto Reference Index Litecoin—4 p.m. NY Time, minus the Trust's liabilities and expenses. The Trust holds only LTC and cash and the Shares are described as a cost‑effective, convenient way to gain exposure to LTC rather than owning LTC directly.
Shares Redeemable Only in Cash, Not LTC
Creation and redemption of the ETF occur in Baskets of 5,000 Shares, and only Authorized Participants may create or redeem Baskets. Authorized Participants will deliver only cash to create Shares and will receive only cash when redeeming Shares, so ordinary shareholders cannot exchange Shares directly for actual LTC.
Custody Uses Cold Storage and Insurance
The Trust's LTC will be held by a qualified Custodian in segregated accounts that identify the Trust as owner, held in cold storage (private keys never connected to the internet), with controls preventing any one person from accessing keys and with fidelity insurance to cover risks like theft. The Custodian's segregation is described as making the assets 'bankruptcy remote.'
Trading Times, NAV/IIV Timing, and Halt Rules
The Shares will trade on Nasdaq from 4:00 a.m. to 8:00 p.m. ET. The Trust's NAV is calculated daily as of 4:00 p.m. ET (with NAVs typically struck by 5:30 p.m. ET and almost always by 8:00 p.m. ET), and an intraday indicative value (IIV) will be disseminated every 15 seconds during the Regular Market Session (9:30 a.m. to 4:00 p.m. ET). The Exchange may halt trading if the IIV or Index value is not being disseminated or for other market conditions, and the Information Circular will warn of risks when trading in pre-market and post-market sessions where an updated IIV is not available.
No Forks, Airdrops, or Reward Income Paid
The Trust will not engage in activities to earn additional LTC (for example, staking or rewards), and it will disclaim incidental rights such as assets from forks or airdrops; such incidental assets will not be counted in the Trust's net asset value (NAV).
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