Grayscale Litecoin Trust Surges 22% in Q3 on LTC Appreciation

TL;DR

**LTCN is back, baby! Litecoin's rally juiced net assets by 22% this quarter, making it a strong play if you're bullish on crypto's comeback.**

AI Summary

Grayscale Litecoin Trust (LTC) reported a significant increase in net assets, rising from $175.867 million on June 30, 2025, to $214.405 million on September 30, 2025, primarily driven by a substantial net change in unrealized appreciation on investment in LTC of $39.686 million for the three months ended September 30, 2025. This contrasts sharply with a net change in unrealized depreciation of $12.977 million in the same period in 2024. The Trust's net increase in net assets resulting from operations was $38.538 million for the three months ended September 30, 2025, a reversal from a net decrease of $14.034 million in the prior year period. The Sponsor's Fee, a related party expense, increased to $1.393 million for the three months ended September 30, 2025, up from $770 thousand in the same period of 2024. The Trust held 2,006,223.48588085 LTC with a fair value of $214.405 million as of September 30, 2025, compared to 2,018,905.79240947 LTC valued at $175.867 million on June 30, 2025. The Principal Market NAV per Share increased from $7.25 to $8.84 during this quarter. Notably, no new shares were issued in the three months ended September 30, 2025, unlike the 1,323,200 shares issued in the same period of 2024.

Why It Matters

This filing reveals a strong rebound in the Grayscale Litecoin Trust's performance, primarily due to the appreciation of Litecoin itself. For investors, the 22% increase in net assets and the rise in Principal Market NAV per Share from $7.25 to $8.84 indicate a positive trend in the underlying asset's value, which is crucial given the Trust's objective to reflect LTC's value. The competitive landscape for crypto trusts and ETFs is intensifying, with several Grayscale affiliated products like Grayscale Bitcoin Trust ETF and Grayscale Ethereum Trust ETF already listed on Section 12(b) exchanges. The SEC's approval of new Generic Listing Standards on September 17, 2025, and the Sponsor's belief that LTCN shares qualify, could pave the way for broader market access and increased liquidity, potentially impacting its premium/discount to NAV and attracting more institutional and retail investors.

Risk Assessment

Risk Level: medium — The Trust's financial performance is entirely dependent on the volatile price of Litecoin, as evidenced by the $39.686 million net change in unrealized appreciation in Q3 2025 compared to a $12.977 million depreciation in Q3 2024. While the Trust aims to reflect LTC's value, it does not operate a redemption program, meaning investors cannot directly redeem shares for LTC, which can lead to significant premiums or discounts to NAV. Furthermore, the Sponsor's Fee increased to $1.393 million, representing a direct cost to the Trust's assets.

Analyst Insight

Investors should monitor Litecoin's price movements closely, as LTCN's value is directly tied to it. Given the potential for NYSE Arca listing under new Generic Listing Standards, investors should assess if this could narrow the historical premium/discount to NAV, offering a potential arbitrage opportunity or increased liquidity. Consider LTCN as a speculative play on Litecoin's future performance, but be aware of the lack of a redemption program and the associated market risks.

Financial Highlights

debt To Equity

0.0

revenue

$0

operating Margin

N/A

total Assets

$214.405M

total Debt

$0

net Income

$38.538M

eps

N/A

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Key Numbers

• $214.405M — Total assets (Increased from $175.867 million on June 30, 2025, representing a 22% increase.)
• $38.538M — Net increase in net assets from operations (For the three months ended September 30, 2025, a significant turnaround from a $14.034 million decrease in the prior year.)
• $39.686M — Net change in unrealized appreciation on investment in LTC (Primary driver of the increase in net assets for the three months ended September 30, 2025.)
• $8.84 — Principal Market NAV per Share (Increased from $7.25 on June 30, 2025, reflecting LTC price appreciation.)
• 24,252,100 — Shares issued and outstanding (Remained constant from June 30, 2025, indicating no new share creations in the quarter.)
• $1.393M — Sponsor's Fee (Increased from $770 thousand in the prior year period, representing a direct expense.)
• 2,006,223.48588085 — Quantity of LTC held (As of September 30, 2025, slightly decreased from 2,018,905.79240947 LTC on June 30, 2025.)
• September 17, 2025 — Date of SEC approval (For new Rule 8.201-E (Generic) listing standards, potentially impacting LTCN's future listing.)

Key Players & Entities

• Grayscale Litecoin Trust (LTC) (company) — Registrant and subject of the 10-Q filing
• Grayscale Investments Sponsors, LLC (company) — Sole remaining sponsor of the Trust
• Litecoin (other) — Underlying digital asset held by the Trust
• NYSE Arca, Inc. (company) — Exchange that submitted an application to list the Trust's Shares
• SEC (regulator) — Approved new Generic Listing Standards on September 17, 2025
• Coinbase Custody Trust Company, LLC (company) — Custodian of the Trust's Litecoin
• Continental Stock Transfer & Trust Company (company) — Transfer Agent for the Trust
• Digital Currency Group, Inc. (company) — Parent company of the Sponsor
• Grayscale Securities, LLC (company) — Affiliated Authorized Participant of the Trust

FAQ

Risk Factors

• Volatility of Litecoin Price [high — market]: The Trust's net assets are primarily composed of Litecoin (LTC). The fair value of LTC can be highly volatile, as evidenced by the net change in unrealized appreciation of $39.686 million in Q3 2025, compared to a depreciation of $12.977 million in Q3 2024. This volatility directly impacts the Trust's net asset value per share, which increased from $7.25 to $8.84 in Q3 2025.
• Sponsor's Fee Increase [medium — operational]: The Sponsor's Fee, a related party expense, increased to $1.393 million for the three months ended September 30, 2025, from $770 thousand in the same period of 2024. This represents a significant increase in operating costs, impacting the net investment loss.
• Regulatory Uncertainty for Digital Assets [medium — regulatory]: The regulatory landscape for digital assets, including Litecoin, is evolving. Changes in regulations could impact the Trust's ability to operate, hold assets, or could affect the price of LTC. The SEC approval for new Rule 8.201-E (Generic) listing standards on September 17, 2025, may have future implications for LTCN's listing.
• Dependence on Unrealized Gains [high — financial]: The substantial increase in net assets ($214.405 million from $175.867 million) in Q3 2025 was primarily driven by a net change in unrealized appreciation on investment in LTC of $39.686 million. This highlights the Trust's reliance on market price appreciation rather than operational revenue.
• Decrease in LTC Holdings [low — market]: The Trust held 2,006,223.48588085 LTC as of September 30, 2025, a slight decrease from 2,018,905.79240947 LTC on June 30, 2025. While the fair value increased due to LTC price appreciation, a reduction in the underlying asset quantity could be a concern if not managed strategically.

Industry Context

The digital asset trust industry is characterized by its direct correlation to the price movements of the underlying cryptocurrencies. Grayscale's products, including the Litecoin Trust, operate within this volatile market. Competitors may offer similar trusts or direct investment vehicles, creating a competitive landscape driven by management fees, product offerings, and regulatory navigation.

Regulatory Implications

The evolving regulatory environment for digital assets poses a significant risk. Changes in SEC guidance or new legislation could impact the Trust's structure, operations, or the marketability of its shares. The recent approval of new listing standards suggests a potential shift towards greater acceptance of digital asset-related securities.

What Investors Should Do

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Key Dates

• 2025-09-30: End of Q3 2025 — Net assets increased to $214.405 million, driven by LTC price appreciation.
• 2025-06-30: End of Q2 2025 — Net assets were $175.867 million, with a lower NAV per share of $7.25.
• 2025-09-17: SEC approval for new Rule 8.201-E (Generic) listing standards — Potentially impacts future listing requirements and opportunities for digital asset trusts like LTCN.
• 2025-09-30: Sponsor's Fee for Q3 2025 reported — Fee increased to $1.393 million, impacting profitability.
• 2024-09-30: End of Q3 2024 — Net assets decreased by $14.034 million, with unrealized depreciation on LTC.

Glossary

Net assets

The total value of the Trust's assets minus its liabilities. (Represents the total value available to shareholders.)

Principal Market NAV per Share

The Net Asset Value per Share calculated based on the primary market where the Trust's shares trade. (Indicates the market value of each share of the Trust.)

Unrealized appreciation (depreciation)

The increase or decrease in the value of an asset that has not yet been sold. (Key driver of the Trust's performance, reflecting changes in the price of Litecoin.)

Sponsor's Fee

A fee paid to the sponsor of the trust for management and operational services. (A direct expense that reduces the Trust's net income.)

LTC

Litecoin, a cryptocurrency. (The underlying asset held by the Grayscale Litecoin Trust.)

10-Q

A quarterly report filed by public companies with the SEC that provides a comprehensive update on their financial performance. (The source document for this analysis, containing detailed financial information.)

Year-Over-Year Comparison

Compared to the prior year's third quarter, Grayscale Litecoin Trust (LTC) has experienced a dramatic turnaround. Net assets surged to $214.405 million, a significant increase driven by a $39.686 million unrealized appreciation in LTC, contrasting with a $12.977 million depreciation in the prior year. This resulted in a net increase in net assets from operations of $38.538 million, a stark reversal from a $14.034 million decrease. However, operating expenses, specifically the Sponsor's Fee, have also risen substantially, increasing from $770 thousand to $1.393 million.

Filing Documents

• ltcn-20250930.htm (10-Q) — 951KB
• ltcn-ex31_1.htm (EX-31.1) — 25KB
• ltcn-ex31_2.htm (EX-31.2) — 25KB
• ltcn-ex32_1.htm (EX-32.1) — 8KB
• ltcn-ex32_2.htm (EX-32.2) — 8KB
• img88516417_0.jpg (GRAPHIC) — 915KB
• img88516417_1.jpg (GRAPHIC) — 586KB
• img88516417_2.jpg (GRAPHIC) — 529KB
• 0001193125-25-266946.txt ( ) — 8000KB
• ltcn-20250930.xsd (EX-101.SCH) — 317KB
• ltcn-20250930_htm.xml (XML) — 456KB

Forward-Looking Statements

Forward-Looking Statements 3 Industry and Market Data 3

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Statements of Assets and Liabilities at September 30, 2025 and June 30, 2025 4 Schedules of Investment at September 30, 2025 and June 30, 2025 5 Statements of Operations for the Three Months Ended September 30, 2025 and 2024 6 Statements of Changes in Net Assets for the Three Months Ended September 30, 2025 and 2024 7 Notes to the Unaudited Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 22 Item 4.

Controls and Procedures

Controls and Procedures 22

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 23 Item 1A.

Risk Factors

Risk Factors 23 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23 Item 3. Defaults Upon Senior Securities 23 Item 4. Mine Safety Disclosures 23 Item 5. Other Information 23 Item 6. Exhibits 24 GLOSSARY OF DEFINED TERMS 25

SIGNATURES

SIGNATURES 29 2 Forw ard-Looking Statements This Quarterly Report on Form 10-Q contains "forward-looking statements" with respect to the financial conditions, results of operations, plans, objectives, future performance and business of Grayscale Litecoin Trust (LTC) (the "Trust"). Statements preceded by, followed by or that include words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and other similar expressions are intended to identify some of the forward-looking statements. All statements (other than statements of historical fact) included in this Quarterly Report that address activities, events or developments that will or may occur in the future, including such matters as changes in market prices and conditions, the Trust's operations, the plans of Grayscale Operating, LLC ("GSO"), the co-sponsor of the Trust from January 1, 2025 to May 3, 2025, and Grayscale Investments Sponsors, LLC ("GSIS"), the co-sponsor of the Trust from January 1, 2025 to May 3, 2025 and the sole remaining sponsor thereafter (each of GSO and GSIS, the "Sponsor", as the context may require, and GSO and GSIS, together, the "Co-Sponsors"), and references to the Trust's future success and other similar matters are forward-looking statements. These statements are only predictions. Actual events or results may differ materially from such statements. These statements are based upon certain assumptions and analyses the Sponsor made based on its perception of historical trends, current conditions and expected future developments, as well as other factors appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor's expectations and predictions, however, is subject to a number of risks and uncertainties, including, but not limited to, those described in "Part I, Item 1A. Risk Factors" of our Annual Report on Form 10-K for the y

– FINANCI AL INFORMATION

PART I – FINANCI AL INFORMATION:

Financial St atements (Unaudited)

Item 1. Financial St atements (Unaudited) GRAYSCALE Litecoin TRUST (LTC) STATEMENTS OF ASSET S AND LIABILITIES (UNAUDITED) ( Amounts in thousands, except Share and per Share amounts) September 30, 2025 June 30, 2025 Assets: Investment in LTC, at fair value (cost $ 181,563 and $ 182,711 as of September 30, 2025 and June 30, 2025, respectively) $ 214,405 $ 175,867 Total assets $ 214,405 $ 175,867 Liabilities: Sponsor's Fee payable, related party $ - $ - Total liabilities - - Net assets $ 214,405 $ 175,867 Shares issued and outstanding, no par value (unlimited Shares authorized) 24,252,100 24,252,100 Principal Market NAV per Share $ 8.84 $ 7.25 See accompanying notes to the unaudited financial statements. 4 GRAYSCALE Litecoin TRUST (LTC) SCHEDULES OF INVESTMENT (UNAUDITED) ( Amounts in thousands, except quantity of LTC and percentages) September 30, 2025 Quantity of LTC Cost Fair Value % of Net Assets Investment in LTC 2,006,223.48588085 $ 181,563 $ 214,405 100 % Total Investment $ 181,563 $ 214,405 100 % Net assets $ 214,405 100 % June 30, 2025 Quantity of LTC Cost Fair Value % of Net Assets Investment in LTC 2,018,905.79240947 $ 182,711 $ 175,867 100 % Total Investment $ 182,711 $ 175,867 100 % Net assets $ 175,867 100 % See accompanying notes to the unaudited financial statements. 5 GRAYSCALE Litecoin TRUST (LTC) STATEMENTS OF OPERATIONS (UNAUDITED) ( Amounts in thousands) Three Months Ended September 30, 2025 2024 Investment income: Investment income $ - $ - Expenses: Sponsor's Fee, related party 1,393 770 Net investment loss ( 1,393 ) ( 770 ) Net realized and unrealized gain (loss) from: Net realized gain (loss) on investment in LTC 245 ( 287 ) Net change in unrealized appreciation (depreciation) on investment in LTC 39,68