Grayscale Litecoin Trust is a passive investment vehicle that holds Litecoin on behalf of investors. The Trust provides exposure to Litecoin price movements through traditional brokerage accounts, allowing investors to avoid the technical complexities and security risks of directly buying, storing, and managing digital assets and private keys. The Trust operates as a grantor trust, holding only Litecoin without active trading, hedging, or attempts to profit from price fluctuations. Shares are issued to accredited investors through private placements and trade publicly on OTC Markets. Coinbase Custody holds the underlying Litecoin in offline cold storage. The Trust generates revenue for its sponsor through an annual sponsor fee assessed as a percentage of net assets and paid in Litecoin. The sponsor pays all routine operating expenses out of this fee. Because the fee is paid by distributing Litecoin from the Trust and no ongoing redemption mechanism exists, the amount of Litecoin backing each share decreases over time, and secondary market share prices fluctuate at premiums or discounts to net asset value.