\n<\/p>\n
Item 1.01. Entry into a Material Definitive Agreement.<\/p>\n
\n\nOn February 1, 2022, Grayscale Investments, LLC, the sponsor (the \"Sponsor\") of\nGrayscale Litecoin Trust (LTC) (the \"Trust\"), and CoinDesk Indices, Inc.,\nformerly known as TradeBlock Inc. (the \"Index Provider\"), entered into an Index\nLicense Agreement (the \"Index License Agreement\") governing the Sponsor's use of\nthe CoinDesk Litecoin Price Index (LTX) (the \"Index\") to calculate the Index\nPrice (as defined below), among other things.\n\nThe foregoing description is a summary, does not purport to be a complete\ndescription of the Index License Agreement, and is qualified in its entirety by\nreference to the Index License Agreement, which is filed as Exhibit 10.1 hereto\nand is incorporated by reference herein.\n\n\n<\/pre>\nItem 1.02. Termination of a Material Definitive Agreement.<\/p>\n
\n\nOn January 31, 2022, in connection with the entry into the Index License\nAgreement, the Sponsor and the Index Provider agreed to terminate that certain\nIndex License Agreement, dated February 28, 2019, between the Sponsor and the\nIndex Provider, that governed the Sponsor's use of the Index to calculate the\nOld Index Price (as defined below).\n\n\n<\/pre>\nItem 8.01. Other Events.<\/p>\n
\n\nGrayscale Litecoin Trust (LTC) (the \"Trust\") has historically valued its\nLitecoin (\"LTC\") for operational purposes by reference to a volume-weighted\naverage index price (the \"Old Index Price\") of an LTC in U.S. dollars calculated\nby applying a weighting algorithm to the price and trading volume data for the\nimmediately preceding 24-hour period as of 4:00 p.m., New York time derived from\nthe selected digital asset exchanges that are reflected in the Index on such\ntrade date. The methodology used exclusively by Grayscale and calculated by the\nIndex Provider to calculate the Old Index Price overlaid an additional averaging\nmechanism to the price produced, resulting in the Old Index Price reflecting an\naverage price for the 24-hour period. The Old Index Price was provided to the\nSponsor once per day at 4:00 p.m., New York time.\n\nEffective February 1, 2022, the Trust will value its LTC for operational\npurposes by reference to the index price (the \"Index Price\") of an LTC in U.S.\ndollars calculated by applying the same methodology to the price and trading\nvolume data for the immediately preceding 24-hour period as of 4:00 p.m., New\nYork time derived from the selected digital asset exchanges that are reflected\nin the Index on such trade date without the additional averaging mechanism being\napplied to the Index Price. The methodology used to calculate the Index Price is\nconsistent with the publicly available LTC price that is published by the Index\nProvider continuously throughout the day, and as a result the Sponsor believes\nthat using the Index Price will provide more transparency to investors. There\nwill be no change to the Index used to determine the Index Price or the criteria\nused to select the digital asset exchanges included in the Index. The Index\nPrice is calculated using non-GAAP methodology and is not used in the Trust's\nfinancial statements.\n\n<\/pre>\nHistorical Digital Asset Holdings and LTC Prices<\/p>\n
For the period from January 1, 2019 and December 31, 2021, the average
\ndifference in price between the Old Index Price and the Index Price and the
\naverage difference in Digital Asset Holdings of the Trust as calculated using
\nthe Old Index Price and the Index Price of was 0.31%.<\/p>\n\n\nThe following chart illustrates the movement in the Index Price, the Old Index\nPrice, the Trust's Digital Asset Holdings per Share based on the Old Index Price\nand the Index Price and the Trust's net asset value per share as calculated in\naccordance with GAAP from March 1, 2018 to December 31, 2021. For more\ninformation on the determination of the Trust's Digital Asset Holdings, see\n\"Overview of Litecoin-LTC Value-The Index and the Index Price\" in Exhibit 99.1\nto Amendment No. 4 to the Trust's Registration Statement on the Form 10 filed\nwith the Securities and Exchange Commission on February 4, 2022 (the\n\"Information Statement\").\n\n--------------------------------------------------------------------------------\n [[Image Removed: LOGO]]\n\n\n\nThe following table illustrates the movements in the Old Index Price from the\nbeginning of the Trust's operations on March 1, 2018 to December 31, 2021. Since\nthe beginning of the Trust's operations, the Old Index Price has ranged from\n$22.81 to $391.06, with the straight average being $99.90. The Sponsor has not\nobserved a material difference between the Old Index Price and average prices\nfrom the constituent Digital Asset Exchanges individually or as a group.\n\n\n\n High Low\n Last\n Old Index Old Index End of business\nPeriod Average Price Date Price Date period day\nMarch 1, 2018 (the first\nCreation Basket of the Trust) to\nDecember 31, 2018 $ 87.16 $ 212.04 3\/5\/2018 <\/pre>\n$ 22.81 12\/14\/2018 $ 30.69 $ 30.69
\nTwelve months ended December 31,
\n2019<\/p>\n$ 68.88 $ 138.93 6\/12\/2019 <\/pre>\n$ 30.64 1\/29\/2019 $ 41.77 $ 41.77
\nTwelve months ended December 31,
\n2020<\/p>\n$ 56.01 $ 132.00 12\/27\/2020 <\/pre>\n$ 32.75 3\/13\/2020 $ 126.00 $ 126.00
\nTwelve months ended December 31,
\n2021<\/p>\n$ 185.60 $ 391.06 5\/11\/2021 $ 108.07 7\/20\/2021 $ 148.49 $ 148.49\nMarch 1, 2018 (the first\nCreation Basket of the Trust) to\nDecember 31, 2021 $ 99.90 $ 391.06 5\/10\/2021 <\/pre>\n$ 22.81 12\/14\/2018 $ 148.49 $ 148.49<\/p>\n
\n\n\nThe following table illustrates the movements in the Index Price from the\nbeginning of the Trust's operations on March 1, 2018 to December 31, 2021. Since\nthe beginning of the Trust's operations, the Index Price has ranged from $22.48\nto $371.71, with the straight average being $100.04. The Sponsor has not\nobserved a material difference between the Index Price and average prices from\nthe constituent Digital Asset Exchanges individually or as a group.\n\n\n\n High Low\n Last\n Index Index End of business\nPeriod Average Price Date Price Date period day\nMarch 1, 2018 (the first\nCreation Basket of the Trust)\nto December 31, 2018 $ 87.05 $ 213.58 3\/1\/2018 $ 22.48 12\/14\/2018 $ 29.87 $ 29.87\nTwelve months ended\nDecember 31, 2019 $ 69.24 $ 142.00 6\/22\/2019 $ 29.96 1\/13\/2019 $ 40.99 $ 40.99\nTwelve months ended\nDecember 31, 2020 $ 56.14 $ 133.63 12\/26\/2020 $ 32.16 3\/16\/2020 $ 124.33 $ 124.33\nTwelve months ended\nDecember 31, 2021 $ 185.76 $ 371.71 5\/11\/2021 $ 108.80 7\/20\/2021 $ 144.08 $ 144.08\nMarch 1, 2018 (the first\nCreation Basket of the Trust)\nto December 31, 2021 $ 100.04 $ 371.71 5\/11\/2021 $ <\/pre>\n22.48 12\/14\/2018 $ 144.08 $ 144.08<\/p>\n
——————————————————————————–<\/p>\n
Secondary Market Trading<\/p>\n
\n\nThe following table sets out the range of high and low closing prices for the\nShares as reported by OTCQX, the Trust's net asset value per share calculated in\naccordance with GAAP and the Trust's Digital Asset Holdings per Share using both\nthe Old Index Price and the Index Price for each of the quarters since\nAugust 18, 2020.\n\n\n\n High Low\n Digital Digital\n Asset Asset\n Digital Holdings Holdings\n Asset per Share Digital per Share\n Holdings using Old Asset using Old\n NAV per per Index NAV per Holdings Index\n OTCQX Share (1) Share(2) Price(2) OTCQX Share(1) per Share(2) Price(2)\nCalendar Year 2020\nThird quarter $ 72.00 $ 6.25 $ 6.26 $ 6.26 $ 23.00 $ 4.06 $ 4.05 $ 4.10\nFourth quarter $ 500.00 $ 12.45 $ 12.45 $ 12.30 $ 29.50 $ 4.19 $ 4.20 $ 4.24\nCalendar Year 2021\nFirst quarter $ 396.00 $ 22.23 $ 22.23 $ 22.14 $ 112.00 $ 11.83 $ 11.82 $ 11.72\nSecond quarter $ 445.99 $ 34.34 $ 34.32 $ 36.10 $ 82.72 $ 11.00 $ 11.02 $ 10.92\nThird quarter $ 87.52 $ 20.46 $ 20.46 $ 20.56 $ 13.13 $ 10.00 $ 10.00 $ 9.93\nFourth quarter $ 24.35 $ 25.16 $ 25.12 $ 25.18 $ 8.96 $ 13.09 $ 13.09 $ 13.36\n\n\n\n<\/pre>\n(1) The NAV is calculated using the fair value of LTC based on the price provided<\/p>\n
by the Digital Asset Market that the Trust considers its principal market,<\/p>\n
which is Coinbase Pro.<\/p>\n
(2) The Trust’s Digital Asset Holdings per Share is derived from the Index Price<\/p>\n
as represented by the Index as of 4:00 p.m., New York time, on the valuation<\/p>\n
date. See “Determination of NAV” in the Trust’s Information Statement. Prior<\/p>\n
to February 1, 2022, the Trust’s Digital Asset Holdings per Share was derived<\/p>\n
from the Old Index Price. The Index Price is calculated using non-GAAP<\/p>\n
methodology and is not used in the Trust’s financial statements.<\/p>\n
\n\n\nThe following chart sets out the historical closing prices for the Shares as\nreported by OTCQX and the Trust's Digital Asset Holdings per Share based on the\nIndex Price and the Old Index Price.\n\n LTCN Premium\/(Discount): LTCN Share Price vs. Digital Asset Holdings per Share\n ($)\n\n\n\n [[Image Removed: LOGO]]\n\nThe following chart sets out the historical premium and discount for the Shares\nas reported by OTCQX and the Trust's Digital Asset Holdings per Share based on\nthe Index Price and the Old Index Price.\n\n<\/pre>\n——————————————————————————–<\/p>\n
\n LTCN Premium\/(Discount): LTCN Share Price vs. Digital Asset Holdings per Share\n (%)\n\n\n\n [[Image Removed: LOGO]]\n<\/pre>\nDetermination of the Index Price When Index Price is Unavailable<\/p>\n
The Sponsor will continue to use the same cascading set of rules to determine
\nthe appropriate LTC reference rate in the event that the Index Price is
\nunavailable, which are set forth below for reference:<\/p>\n\n\n1. Index Price = The price set by the Index as of 4:00 p.m., New York time, on\nthe valuation date. If the Index becomes unavailable, or if the Sponsor\ndetermines in good faith that the Index does not reflect an accurate price, then\nthe Sponsor will, on a best efforts basis, contact the Index Provider to obtain\nthe Index Price directly from the Index Provider. If after such contact the\nIndex remains unavailable or the Sponsor continues to believe in good faith that\nthe Index does not reflect an accurate price, then the Sponsor will employ the\nnext rule to determine the Index Price. There are no predefined criteria to make\na good faith assessment and it will be made by the Sponsor in its sole\ndiscretion.\n\n2. Index Price = The price set by Coin Metrics Real-Time Rate (the \"Secondary\nIndex\") as of 4:00 p.m., New York time, on the valuation date (the \"Secondary\nIndex Price\"). The Secondary Index Price is a real-time reference rate price,\ncalculated using trade data from constituent markets selected by Coin Metrics\n(the \"Secondary Index Provider\"). The Secondary Index Price is calculated by\napplying weighted-median techniques to such trade data where half the weight is\nderived from the trading volume on each constituent market and half is derived\nfrom inverse price variance, where a constituent market with high price variance\nas a result of outliers or market anomalies compared to other constituent\nmarkets is assigned a smaller weight. If the Secondary Index becomes\nunavailable, or if the Sponsor determines in good faith that the Secondary Index\ndoes not reflect an accurate price, then the Sponsor will, on a best efforts\nbasis, contact the Secondary Index Provider to obtain the Secondary Index Price\ndirectly from the Secondary Index Provider. If after such contact the Secondary\nIndex remains unavailable or the Sponsor continues to believe in good faith that\nthe Secondary Index does not reflect an accurate price, then the Sponsor will\nemploy the next rule to determine the Index Price. There are no predefined\ncriteria to make a good faith assessment and it will be made by the Sponsor in\nits sole discretion.\n\n3. Index Price = The price set by the Trust's principal market (the \"Tertiary\nPricing Option\") as of 4:00 p.m., New York time, on the valuation date. The\nTertiary Pricing Option is a spot price derived from the principal market's\npublic data feed that is believed to be consistently publishing pricing\ninformation as of 4:00 p.m., New York time, and is provided to the Sponsor via\nan application programming interface. If the Tertiary Pricing Option becomes\nunavailable, or if the Sponsor determines in good faith that the Tertiary\nPricing Option does not reflect an accurate price, then the Sponsor will, on a\nbest efforts basis, contact the Tertiary Pricing Provider to obtain the Tertiary\nPricing Option directly from the Tertiary Pricing Provider. If after such\ncontact the Tertiary Pricing Option remains unavailable after such contact or\nthe Sponsor continues to believe in good faith that the Tertiary Pricing Option\ndoes not reflect an accurate price, then the Sponsor will employ the next rule\nto determine the Index Price. There are no predefined criteria to make a good\nfaith assessment and it will be made by the Sponsor in its sole discretion.\n. . .\n\n\n<\/pre>\nItem 9.01. Financial Statements and Exhibits<\/p>\n
\n\n\n\n(d) Exhibits\n\n\n\n\nExhibit\nNo. Description\n\n10.1\u2020 Index License Agreement, dated February 1, 2022, between Grayscale\n Investments, LLC, as sponsor of Grayscale Litecoin Trust (LTC), and\n CoinDesk Indices, Inc., formerly known as TradeBlock, Inc., as Index\n Provider.\n\n104 Cover Page Interactive Data File (the cover page XBRL tags are embedded\n within the inline XBRL document)\n\n\n\n<\/pre>\n\u2020 Portions of this exhibit (indicated by asterisks) have been omitted as the<\/p>\n
Registrant has determined that (i) the omitted information is not material and<\/p>\n
(ii) the omitted information would likely cause competitive harm to the<\/p>\n
Registrant if publicly disclosed.<\/p>\n
——————————————————————————–<\/p>\n
\u00a9 Edgar Online, source Glimpses<\/p>\n<\/div>\n