GRAYSCALE LITECOIN TRUST (LTC) : Other Events (form 8-K)

Item 8.01 Other Events.

Grayscale Litecoin Trust (LTC) (the “Trust”) values its Litecoin (“LTC”) for
operational purposes by reference to the volume-weighted index price (the “Index
Price”) of an LTC in U.S. dollars calculated by applying a weighting algorithm
to the price and trading volume data for the immediately preceding 24-hour
period as of 4:00 p.m., New York time derived from the selected digital asset
exchanges that are reflected in the CoinDesk Litecoin Price Index (LTX) (the
“Index”) on such trade date. The Index Price is calculated using non-GAAP
methodology and is not used in the Trust’s financial statements. If the Index
becomes unavailable or if Grayscale Investments, LLC, the sponsor (the
“Sponsor”) of the Trust, determines in good faith that the Index does not
reflect an accurate LTC price, then the Sponsor will employ an alternative
method to determine the Index Price under the cascading set of rules as
described in the Trust’s Exhibit 99.1 to Amendment No. 3 to the Trust’s
Registration Statement on Form 10, as filed with the Securities and Exchange
Commission
on November 4, 2021. Effective January 11, 2022, the Sponsor has
amended the cascading set of rules used to determine the Index Price as
described below.

Updates to the Trust’s LTC Value disclosure:

Determination of the Index Price When Index Price is Unavailable

The Sponsor will use the following cascading set of rules to calculate the Index
Price. For the avoidance of doubt, the Sponsor will employ the below rules
sequentially and in the order as presented below, should one or more specific
rule(s) fail:

1.

Index Price = The price set by the Index as of 4:00 p.m., New York time, on the
valuation date. If the Index becomes unavailable, or if the Sponsor determines
in good faith that the Index does not reflect an accurate price, then the
Sponsor will, on a best efforts basis, contact the Index Provider to obtain the
Index Price directly from the Index Provider. If after such contact the Index
remains unavailable or the Sponsor continues to believe in good faith that the
Index does not reflect an accurate price, then the Sponsor will employ the next
rule to determine the Index Price. There are no predefined criteria to make a
good faith assessment and it will be made by the Sponsor in its sole discretion.
2.
Index Price = The price set by Coin Metrics Real-Time Rate (the "Secondary
Index") as of 4:00 p.m., New York time, on the valuation date (the "Secondary
Index Price"). The Secondary Index Price is a real-time reference rate price,
calculated using trade data from constituent markets selected by Coin Metrics
(the "Secondary Index Provider"). The Secondary Index Price is calculated by
applying weighted-median techniques to such trade data where half the weight is
derived from the trading volume on each constituent market and half is derived
from inverse price variance, where a constituent market with high price variance
as a result of outliers or market anomalies compared to other constituent
markets is assigned a smaller weight. If the Secondary Index becomes
unavailable, or if the Sponsor determines in good faith that the Secondary Index
does not reflect an accurate price, then the Sponsor will, on a best efforts
basis, contact the Secondary Index Provider to obtain the Secondary Index Price
directly from the Secondary Index Provider. If after such contact the Secondary
Index remains unavailable or the Sponsor continues to believe in good faith that
the Secondary Index does not reflect an accurate price, then the Sponsor will
employ the next rule to determine the Index Price. There are no predefined
criteria to make a good faith assessment and it will be made by the Sponsor in
its sole discretion.
3.
Index Price = The price set by the Trust's principal market (the "Tertiary
Pricing Option") as of 4:00 p.m., New York time, on the valuation date. The
Tertiary Pricing Option is a spot price derived from the principal market's
public data feed that is believed to be consistently publishing pricing
information as of 4:00 p.m., New York time, and is provided to the Sponsor via
an application programming interface. If the Tertiary Pricing Option becomes
unavailable, or if the Sponsor determines in good faith that the Tertiary
Pricing Option does not reflect an accurate price, then the Sponsor will, on a
best efforts basis, contact the Tertiary Pricing Provider to obtain the Tertiary
Pricing Option directly from the Tertiary Pricing Provider. If after such
contact the Tertiary Pricing Option remains unavailable after such contact or
the Sponsor continues to believe in good faith that the Tertiary Pricing Option
does not reflect an accurate price, then the Sponsor will employ the next rule
to determine the Index Price. There are no predefined criteria to make a good
faith assessment and it will be made by the Sponsor in its sole discretion.
4.
Index Price = The Sponsor will use its best judgment to determine a good faith
estimate of the Index Price. There are no predefined criteria to make a good
faith assessment and it will be made by the Sponsor in its sole discretion.



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