Item 8.01 Other Events.
operational purposes by reference to the volume-weighted index price (the “Index
Price”) of an LTC in
to the price and trading volume data for the immediately preceding 24-hour
period as of
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
“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
Commission
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 of4:00 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 of4:00 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 of4:00 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 of4:00 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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