The Litecoin Trust is a trust that holds Litecoin (LTC) and issues Shares tied to the Trust’s LTC holdings, relying on third-party custodians and subject to market, operational, and regulatory risks.

# Litecoin Trust

## Overview
- Entity type: A trust that holds digital assets (Litecoin, LTC) and issues Shares to investors.
- Sponsor relationship: The Sponsor acts on behalf of the Trust. The Sponsor and its affiliates have only the duties set out in the Trust Agreement, which may create conflicts of interest.
- Primary objective: The Trust holds LTC and issues Shares whose value is tied to the Trust’s LTC holdings and related price benchmarks (Index Price and NAV per Share). Shares trade in the market and can trade at prices that diverge from the Trust’s NAV.

## Activities and structure
- Custody of LTC: The Trust safekeeps LTC assets and relies on third-party service providers for key custody and operational functions. Replacing those providers could create custody and operational challenges.
- Issuance and trading of Shares: The Trust issues Shares that represent an interest in the LTC held by the Trust. Shares trade on public markets (for example, OTC Markets and a Digital Asset Trading Platform Market).
- Price linkage mechanics: There is no ongoing redemption program and Shares are subject to a holding period under Rule 144. Combined with non-concurrent trading hours across markets, there is no guaranteed arbitrage mechanism to keep Share price tightly aligned with the Index Price or NAV, which can result in persistent premiums or discounts to NAV.
- Market structure factors: Differences in trading hours and other market features can cause Shares to trade above, below, or at NAV per Share.
- Regulation and governance: The Trust operates within an evolving regulatory environment. Changes in regulation or regulatory interpretation could affect LTC, the Trust’s operations, the treatment of Shares, and tax consequences.
- Potential conflicts of interest: The Sponsor and its affiliates may favor their own interests to the extent permitted by the Trust Agreement.

## Key components and risks
- Assets held: Litecoin (LTC).
- Benchmarking: Index Price and NAV per Share are referenced as value measures; Share trading price can diverge from those benchmarks.
- Market and counterparty risks: Trading platforms and counterparties can present risks such as fraud, market manipulation, security failures, operational interruptions, and variations in regulatory oversight.
- Structural risks: Dependence on third parties, absence of a redemption program, potential arbitrage inefficiencies, possible persistent premiums or discounts to NAV, and differences in trading hours across venues.
- Regulatory and tax risks: Possible changes in securities-law treatment, money transmitter considerations, and evolving tax treatment for digital assets.

Grayscale Litecoin Trust (LTC) is a Delaware Statutory Trust that offers institutional and accredited investors a way to gain exposure to Litecoin (LTC) through publicly traded shares.

# Grayscale Litecoin Trust

## Overview
Grayscale Litecoin Trust is a Delaware Statutory Trust formed on January 26, 2018 to provide accredited and institutional investors with exposure to Litecoin (LTC) through a publicly traded vehicle. The Trust allows investors to gain price exposure to LTC without managing custody and storage of the underlying asset.

## Key features
- Ticker symbol: LTCN  
- Trading platform: Shares trade on OTCQX Best Market  
- Sponsor and administrator: Grayscale Investments, LLC  
- Custodian: Coinbase Custody Trust Company, LLC  
- Trustee: Delaware Trust Company  
- Transfer agent: Continental Stock Transfer & Trust Company

## Purpose and functionality
The Trust holds LTC and issues Shares that provide investors with price exposure to the asset. Authorized participants can create new Shares by depositing LTC, which supports liquidity and price discovery.

## Investment objective
The Trust’s primary objective is for the value of Shares to reflect the value of the LTC held by the Trust, less expenses and liabilities.

## Scale of operations (as of June 30, 2024)
- Number of shares: Approximately 74.7 million LTC in circulation  
- Holdings: The Trust holds about 2.4% of the total LTC in circulation

## Financial data (as of June 30, 2024)
- Sponsor’s fee: Calculated at an annual rate of 2.5% of the NAV Fee Basis Amount  
- Trading dynamics: Shares have traded at premiums and discounts to NAV, which can affect investment returns

## Security and custody
The Trust stores LTC using cold storage with private keys kept offline. Security measures include multi-signature protocols and geographically distributed vaults.

## Regulatory considerations
The Trust is not registered under the Investment Company Act of 1940 and does not provide the same protections as an investment company. Ongoing regulatory developments, including potential classifications of LTC as a security, could impact the Trust’s operations and the value of Shares.

## Strategic position
The Trust offers a straightforward alternative for investors seeking exposure to LTC without directly managing the asset. Key differentiators:
- Security: Cold storage and multi-signature protocols for asset protection  
- Transparency: Daily NAV publication based on the index price from selected trading platforms  
- Simplicity: Shares eliminate the need for custody and related operational tasks for investors

## Conclusion
Grayscale Litecoin Trust provides a structured vehicle for gaining exposure to Litecoin through a tradable share. It serves accredited and institutional investors who prefer an off-chain investment option while operating amid market volatility and evolving regulatory conditions.

Grayscale Litecoin Trust (LTC)

10-K / September 3, 2026

10-K / September 6, 2024

10-K / September 3, 2026

Litecoin Trust

Overview

Activities and structure

Key components and risks