PANews reported on February 7 that according to The Block, the U.S. Securities and Exchange Commission (SEC) has sought public comment on a proposal to convert Grayscale's Litecoin (LTC) Trust into an ETF. In a document released on Thursday, the SEC acknowledged the application submitted by NYSE Arca on behalf of Grayscale and requested comments within 21 days of publication in the Federal Register. The SEC may decide to approve, reject or "start the process."

NYSE Arca filed a 19b-4 filing last month to convert the Grayscale Litecoin Trust and Grayscale Solana Trust into ETFs. The 19b-4 filing is the second part of a two-step process for proposing a spot cryptocurrency ETF. Once the SEC confirms the filing, it will be published in the Federal Register, initiating the agency’s approval process.

In the past few weeks, several companies have submitted proposals for funds based on Dogecoin (DOGE) and other altcoins, seemingly hoping that changes in SEC leadership might be more conducive to approving a cryptocurrency ETF.