NYSE Arca, Inc. has proposed a rule change to allow for the listing and trading of shares of the Grayscale Litecoin Trust under its new rule, 8.201-E, which covers Commodity-Based Trust Shares. This proposal aims to turn the Grayscale Litecoin Trust into an exchange-traded product, making it easier for investors to gain exposure to Litecoin (LTC) on a regulated exchange. The Trust currently holds about $215.4 million worth of LTC and is the largest LTC investment fund, which allows investors to engage without directly purchasing the cryptocurrency. The Securities and Exchange Commission is soliciting public feedback on the proposed rule change.
Simple Explanation
NYSE Arca wants to list and trade shares of a big Litecoin fund, making it easier for people to buy and sell Litecoin on a regular exchange without having to buy the actual digital coins. The rules and details about how it works are a bit complicated, so they are asking people to share their thoughts on the idea.