<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0"><B>As filed with the Securities and Exchange Commission on January 24, 2025</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Registration No.&nbsp;333-________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt; font-variant: small-caps"><B>FORM
S-1 <BR>
REGISTRATION STATEMENT<BR>
<I>UNDER<BR>
THE SECURITIES ACT OF 1933</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt; font-variant: small-caps"><B>COINSHARES
LITECOIN ETF</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Exact Name of Registrant as Specified in Its
Charter)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%; padding-top: 4pt; padding-right: 5pt; padding-left: 5pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="width: 34%; padding-top: 4pt; padding-right: 5pt; padding-left: 5pt; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 33%; padding-top: 4pt; padding-right: 5pt; padding-left: 5pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>________</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5pt; padding-left: 5pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(State or Other Jurisdiction of</B><BR>
<B>Incorporation or Organization)</B></FONT></TD>
    <TD STYLE="padding-right: 5pt; padding-left: 5pt">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>c/o CoinShares Co.<BR>
    Charles Butler<BR>
    437 Madison Avenue, 28<SUP>th</SUP> Floor</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>New York, NY 10022</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(646) 308-1518&nbsp;</B></P></TD>
    <TD STYLE="padding-right: 5pt; padding-left: 5pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(I.R.S. Employer</B><BR>
<B>Identification Number)</B></FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Address, Including Zip Code, and Telephone
Number, Including Area Code,<BR>
of Registrant&rsquo;s Principal Executive Offices and Agent for Service)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>Copies to:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Morrison C. Warren, Esq.<BR>
Chapman and Cutler LLP<BR>
320 South Canal Street<BR>
Chicago, Illinois 60606</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Approximate date of commencement of proposed
sale to the public</B>: As soon as practicable after this registration statement becomes effective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If any of the securities being
registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check
the following box.&nbsp;&nbsp;&#9746;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If this Form is filed to register
additional securities for an offering pursuant to Rule 462(b) under the Securities Act of 1933, check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;&#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If this Form is a post-effective
amendment filed pursuant to Rule 462(c) under the Securities Act of 1933, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;&#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If this Form is a post-effective
amendment filed pursuant to Rule 462(d) under the Securities Act of 1933, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;&#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Indicate by check mark whether
the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging
growth company. See the definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo; &ldquo;smaller reporting
company&rdquo; and &ldquo;emerging growth company&rdquo; in Rule 12b-2 of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large&nbsp;accelerated&nbsp;filer</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated&nbsp;filer</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated filer</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller&nbsp;reporting&nbsp;company</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging growth company</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.</FONT> &nbsp; <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>The Registrant hereby
amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file
a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section
8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting
pursuant to said Section 8(a), may determine.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B></B></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 2pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B></B></P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin: 0pt"></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B></B></P>

<P STYLE="color: Red; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The information in this prospectus is not complete
and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission
is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any
state where the offer or sale is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="color: Red; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Subject to Completion<BR>
Preliminary Prospectus dated January 24, 2025</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><IMG SRC="image_001.jpg" ALT="" STYLE="height: 85px; width: 576px"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COINSHARES LITECOIN ETF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Common Shares of Beneficial Interest</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The CoinShares Litecoin ETF
(the &ldquo;Trust&rdquo;) is an exchange-traded fund that issues common shares of beneficial interest (the &ldquo;Shares&rdquo;), which
represent units of fractional undivided beneficial interest in and ownership of the Trust. The Trust&rsquo;s purpose is to hold Litecoin
(&ldquo;LTC&rdquo;), a digital commodity based on the cryptographic protocols used by the decentralized, peer-to-peer computer network
(the &ldquo;Litecoin Network&rdquo;). The investment objective of the Trust is for the Shares to reflect the performance of the value
of LTC as represented by the Compass Crypto Reference Index Litecoin - 4pm NY Time (the &ldquo;Index&rdquo;), less the Trust&rsquo;s liabilities
and expenses. The Shares are designed to provide investors with a cost-effective and convenient way to invest in LTC. As of the date of
this prospectus (this &ldquo;Prospectus&rdquo;), CoinShares Co. is the sole sponsor of the Trust (the &ldquo;Sponsor&rdquo;), CSC Delaware
Trust Company is the trustee of the Trust (the &ldquo;Trustee&rdquo;), ________ is the transfer agent of the Trust (in such capacity,
the &ldquo;Transfer Agent&rdquo;) and the administrator of the Trust (in such capacity, the &ldquo;Administrator&rdquo;), ________ is
the marketing agent of the Trust (the &ldquo;Marketing Agent&rdquo;), ________, ________ and ________, are the custodians of the Trust&rsquo;s
LTC (each a &ldquo;Custodian&rdquo; and collectively, the &ldquo;Custodians&rdquo;), ________, is the prime broker of the Trust (the &ldquo;Prime
Broker&rdquo;), and ________, is the cash custodian of the Trust (the &ldquo;Cash Custodian&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This is an initial public
offering of the Shares. The Shares may be purchased from the Trust only in one or more blocks of 5,000 Shares (a block of 5,000 Shares
is called a &ldquo;Basket&rdquo;). The Trust issues Baskets to certain authorized participants (together, the &ldquo;Authorized Participants&rdquo;
and each, an &ldquo;Authorized Participant&rdquo;) on an ongoing basis as described in &ldquo;Plan of Distribution.&rdquo; Baskets are
offered continuously in exchange for cash. The Trust does not issue fractions of a Basket. The initial price per Share is $________ and
was selected as an appropriate and convenient price that would facilitate secondary market trading of Shares. The Trust intends to redeem
Shares in Baskets on an ongoing basis from the Authorized Participants. The Authorized Participants have acknowledged that some activities
on their part may result, depending on the circumstances, in their being deemed participants in a distribution in a manner which could,
under certain interpretations of applicable law, render them statutory underwriters and subject them to the prospectus delivery and liability
provisions of the U.S. Securities Act of 1933 (the &ldquo;Securities Act&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust has listed the Shares
on The Nasdaq Stock Market, LLC (&ldquo;Nasdaq&rdquo; or the &ldquo;Exchange&rdquo;) under the symbol &ldquo;________.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">[On ____, 202_, ____ (the
&ldquo;Seed Capital Investor&rdquo;), an&nbsp;affiliate of the Sponsor, purchased ____ (__) Share at a per-Share price of $___ (the &ldquo;Seed
Share&rdquo;). Delivery of the Seed Share was made on ____, 202_. Total proceeds to the Trust from the sale of the Seed Share were $___.&nbsp;On
____, 202_, the Seed Share was redeemed for cash and the Seed Capital Investor purchased ____ Shares at a per-Share price of $____ (the
&ldquo;Seed Baskets&rdquo;).&nbsp;Total proceeds to the Trust from the sale of the Seed Baskets were $____. On ____, 202_, the Trust purchased
____ LTC with the proceeds of the Seed Baskets. As of the date of the Prospectus, these ____Shares represent all of the outstanding Shares.&nbsp;The
Seed Capital Investor will act as a statutory underwriter in connection with the Seed Baskets. See &ldquo;Seed Capital Investor&rdquo;
for additional information.]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The price of the Seed Share
and the Seed Baskets were each determined as described herein and such Shares could be sold at different prices if sold by the Seed Capital
Investor at different times.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Holders of beneficial interests
in the Shares (&ldquo;Shareholders&rdquo;) who decide to buy or sell Shares of the Trust will place their trade orders through their brokers
and may incur customary brokerage commissions and charges. Prior to this offering, there has been no public market for the Shares. The
Shares are expected to be listed for trading, subject to notice of issuance, on Nasdaq. Investing in the Trust involves risks similar
to those involved with an investment directly in LTC and other significant risks. See &ldquo;Risk Factors&rdquo; beginning on page 10.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin: 0pt"></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The offering of an indeterminate
amount of the Shares is registered with the U.S. Securities and Exchange Commission (the &ldquo;SEC&rdquo;) in accordance with the Securities
Act. The offering is intended to be a continuous offering and is not expected to terminate until three years from the date of the original
offering unless extended as permitted by applicable rules under the Securities Act. The Trust is not a mutual fund registered under the
U.S. Investment Company Act of 1940, as amended (the &ldquo;1940 Act&rdquo;) and is not subject to regulation under the 1940 Act. The
Trust is not a commodity pool for purposes of the U.S. Commodity Exchange Act of 1936, as amended (the &ldquo;CEA&rdquo;), and the Sponsor
is not subject to regulation by the U.S. Commodity Futures Trading Commission (the &ldquo;CFTC&rdquo;) as a commodity pool operator or
a commodity trading adviser. The Shares are neither interests in nor obligations of the Sponsor or the Trustee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>AN INVESTMENT IN THE TRUST
INVOLVES SIGNIFICANT RISKS AND MAY NOT BE SUITABLE FOR SHAREHOLDERS THAT ARE NOT IN A POSITION TO ACCEPT MORE RISK THAN MAY BE INVOLVED
WITH OTHER EXCHANGE-TRADED PRODUCTS THAT DO NOT HOLD LTC OR INTERESTS RELATED TO LTC. THE SHARES ARE SPECULATIVE SECURITIES. THE PURCHASE
OF SHARES INVOLVES A HIGH DEGREE OF RISK AND YOU COULD LOSE YOUR ENTIRE INVESTMENT. YOU SHOULD CONSIDER ALL RISK FACTORS BEFORE INVESTING
IN THE TRUST. PLEASE REFER TO &ldquo;RISK FACTORS&rdquo; BEGINNING ON PAGE 10.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>NEITHER THE SEC NOR ANY
STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE SECURITIES OFFERED IN THIS PROSPECTUS, OR DETERMINED IF THIS PROSPECTUS
IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>THE TRUST IS AN &ldquo;EMERGING
GROWTH COMPANY&rdquo; AS THAT TERM IS USED IN THE U.S. JUMPSTART OUR BUSINESS STARTUPS ACT (THE &ldquo;JOBS ACT&rdquo;) AND, AS SUCH,
MAY ELECT TO COMPLY WITH CERTAIN REDUCED REPORTING REQUIREMENTS.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>The date of this prospectus is [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ], 202_</B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin: 0pt"></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>TABLE
OF CONTENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%; padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_001">STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</A></FONT></TD>
    <TD STYLE="text-align: center; width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ii</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_002">INDUSTRY AND MARKET DATA</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ii</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_003">PROSPECTUS SUMMARY</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_004">THE OFFERING</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_005">RISK FACTORS</A></FONT></TD>
    <TD STYLE="text-align: center">10<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_006">USE OF PROCEEDS</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">62</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_007">OVERVIEW OF THE LTC INDUSTRY AND MARKET</A></FONT></TD>
    <TD STYLE="text-align: center">62<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_008">ACTIVITIES OF THE TRUST</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">68</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; text-transform: uppercase"><A HREF="#a_009">USE OF Compass Crypto Reference Index Litecoin - 4pm NY Time</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">72</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_010">CALCULATION OF NAV</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">74</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_011">DESCRIPTION OF THE TRUST</A></FONT></TD>
    <TD STYLE="text-align: center">77<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_012">THE SPONSOR</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">78</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_013">THE TRUSTEE</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">79</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_014">THE TRANSFER AGENT</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT>80</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_015">THE ADMINISTRATOR</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_016">AUTHORIZED PARTICIPANTS</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">81</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_017">THE CUSTODIANS</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">81</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_018">THE PRIME BROKER AND THE TRADE CREDIT LENDER</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">83</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_019">THE CASH CUSTODIAN</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">88</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_020">CONFLICTS OF INTEREST</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">88</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_021">DESCRIPTION OF THE SHARES</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">89</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_022">CUSTODY OF THE TRUST&rsquo;S LTC</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">91</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_023">DESCRIPTION OF CREATION AND REDEMPTION OF SHARES</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">95</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_024">EXPENSES</A></FONT></TD>
    <TD STYLE="text-align: center">100</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_025">BOOK-ENTRY-ONLY SHARES</A></FONT></TD>
    <TD STYLE="text-align: center">101<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_026">PROVISIONS OF LAW</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">102</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_027">MANAGEMENT; VOTING BY SHAREHOLDERS</A></FONT></TD>
    <TD STYLE="text-align: center">102<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_028">BOOKS AND RECORDS</A></FONT></TD>
    <TD STYLE="text-align: center">102<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_029">GOVERNING LAW; CONSENT TO DELAWARE JURISDICTION</A></FONT></TD>
    <TD STYLE="text-align: center">103<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_030">STATEMENTS, FILINGS AND REPORTS</A></FONT></TD>
    <TD STYLE="text-align: center">103<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_031">DESCRIPTION OF THE TRUST AGREEEMENT</A></FONT></TD>
    <TD STYLE="text-align: center">103<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_032">U.S. FEDERAL INCOME TAX CONSEQUENCES</A></FONT></TD>
    <TD STYLE="text-align: center">107<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_033">ERISA AND RELATED CONSIDERATIONS</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">110</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_034">SEED CAPITAL INVESTOR</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">110</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_035">PLAN OF DISTRIBUTION</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">111</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_036">LEGAL MATTERS</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">113</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_037">EXPERTS</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">11</FONT>3</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_038">SUMMARY OF PROMOTIONAL AND SALES MATERIAL</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">113</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 13.5pt; text-align: justify; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_039">PRIVACY POLICY</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">113</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><A HREF="#a_040">WHERE YOU CAN FIND MORE INFORMATION; INCORPORATION OF CERTAIN INFORMATION BY REFERENCE</A></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">105</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Neither the Sponsor nor
the Trust has authorized anyone to provide you with information different from that contained in this Prospectus, any amendment or supplement
to this Prospectus or any free writing prospectus prepared by us or on our behalf. Neither the Sponsor nor the Trust takes any responsibility
for, or can provide any assurance as to the reliability of, any information other than the information in this Prospectus, any amendment
or supplement to this Prospectus or any free writing prospectus prepared by the Sponsor or the Trust, or on the Trust&rsquo;s behalf.
The Trust is offering to sell, and seeking offers to buy, the Shares only in jurisdictions where offers and sales are permitted. The information
in this Prospectus is accurate only as of the date of this Prospectus, regardless of the time of delivery of this Prospectus or any sale
of the Shares.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In this Prospectus, unless
otherwise stated or the context otherwise requires, &ldquo;we,&rdquo; &ldquo;our&rdquo; and &ldquo;us&rdquo; refer to the Sponsor acting
on behalf of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B></B></P>

<!-- Field: Page; Sequence: 4; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->i<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B></B>&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_001"></A>STATEMENT REGARDING
FORWARD-LOOKING STATEMENTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Prospectus contains &ldquo;forward-looking
statements&rdquo; with respect to the Trust&rsquo;s financial conditions, results of operations, plans, objectives, future performance
and business. Statements preceded by, followed by or that include words such as &ldquo;may,&rdquo; &ldquo;might,&rdquo; &ldquo;will,&rdquo;
&ldquo;should,&rdquo; &ldquo;expect,&rdquo; &ldquo;plan,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo;
&ldquo;predict,&rdquo; &ldquo;potential&rdquo; or &ldquo;continue,&rdquo; 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
Prospectus that address activities, events or developments that will or may occur in the future, including such matters as changes in
market prices and conditions for the LTC and/or the Shares, the Trust&rsquo;s operations, the Sponsor&rsquo;s plans and references to
the Trust&rsquo;s future success and other similar matters are forward-looking statements. These statements are only predictions. Actual
events or results may differ materially. These statements are based on 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 deemed appropriate in the
circumstances. You should specifically consider the numerous risks outlined under &ldquo;Risk Factors.&rdquo; Whether or not actual results
and developments will conform to the Sponsor&rsquo;s expectations and predictions, however, is subject to a number of risks and uncertainties,
including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the special considerations discussed in this Prospectus;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">general economic, market and business conditions;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the use of technology by us and our vendors, including the Custodians and the Prime Broker, in conducting our business, including disruptions in our computer systems and data centers and our transition to, and quality of, new technology platforms;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in applicable laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the costs and effects of any litigation or regulatory investigations;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to maintain a positive reputation; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">other global economic and political developments.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Consequently, all the forward-looking
statements made in this Prospectus are qualified by these cautionary statements, and there can be no assurance that the actual results
or developments the Sponsor anticipates will be realized or, even if substantially realized, that they will result in the expected consequences
to, or have the expected effects on, the Trust&rsquo;s operations or the value of the Shares. Should one or more of these risks discussed
in &ldquo;Risk Factors&rdquo; or other uncertainties materialize, or should any underlying assumptions prove incorrect, actual outcomes
may vary materially from those described in the forward-looking statements. Forward-looking statements are made based on the Sponsor&rsquo;s
beliefs, estimates and opinions on the date the statements are made and neither the Trust nor the Sponsor is under a duty or undertakes
an obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, other
than as required by applicable laws. Moreover, neither the Trust, the Sponsor, nor any other person assumes responsibility for the accuracy
and completeness of any of these forward-looking statements. Investors are therefore cautioned against placing undue reliance on forward-looking
statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><FONT STYLE="text-transform: uppercase"><A NAME="a_002"></A>Industry
and Market Data</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although we are responsible
for all disclosure contained in this prospectus, in some cases we have relied on certain market and industry data obtained from third-party
sources that we believe to be reliable. Market estimates are calculated by using independent industry publications in conjunction with
our assumptions regarding the LTC industry and market. While we are not aware of any misstatements regarding any market, industry or similar
data presented herein, such data involves risks and uncertainties and is subject to change based on various factors, including those discussed
under the headings &ldquo;Statement Regarding Forward-Looking Statements&rdquo; and &ldquo;Risk Factors&rdquo; in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B></B></FONT></P>

<!-- Field: Page; Sequence: 5; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->ii<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B></B></FONT>&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_003"></A>PROSPECTUS
SUMMARY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>This is only a summary
of the Prospectus and, while it contains material information about the Trust and the Shares, it does not contain or summarize all of
the information about the Trust and the Shares contained in this Prospectus which is material and/or which may be important to you. You
should read this entire Prospectus, including the &ldquo;Risk Factors&rdquo; beginning on page 10. Any individual intending to invest
in any investment described in this Prospectus should consult his or her professional advisers and ensure that he or she fully understands
all the risks associated with making such an investment before making an investment decision about the Shares.</I></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Trust Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The investment objective of
the Trust is for the Shares to reflect the performance of the value of LTC as represented by the Compass Crypto Reference Index Litecoin
- 4pm NY Time (the &ldquo;Index&rdquo;), less the Trust&rsquo;s liabilities and expenses. In seeking to achieve its investment objective,
the Trust will hold LTC and will value its Shares daily based on the value of LTC as reflected by the Index. The Index is calculated independently
by Compass Financial Technologies (the &ldquo;Benchmark Administrator&rdquo;) based on an aggregation of executed trade flow of Selected
Exchanges (defined below). There can be no assurance that the Trust will achieve its investment objective. The Sponsor is authorized under
a trust agreement between the Sponsor and the Trustee (as amended, the &ldquo;Trust Agreement&rdquo;) to substitute an alternative index,
reference rate, or other methodology for the purposes of valuing LTC in accordance with the Trust&rsquo;s valuation policies and/or for
the purposes of achieving the Trust&rsquo;s investment objective at its sole discretion and without Shareholder approval. The Shares are
designed to provide investors with a cost-effective and convenient way to invest in LTC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because the value of the Shares
is tied to the value of LTC held by the Trust, it is important to first understand the investment attributes of, and the market for, LTC.
Investing in the Shares does not insulate the investor from certain risks, including price volatility. The price of&nbsp;LTC on the&nbsp;LTC&nbsp;market
has exhibited periods of extreme&nbsp;volatility, which could have a negative impact on the performance of the Trust. For example, between
May 2021 and June 2022, the price of&nbsp;LTC&nbsp;fell from a then-all-time high of $412.96 to $43.31. See &ldquo;Risk Factors.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is passively managed
and does not pursue active management investment strategies, and the Sponsor does not actively manage the LTC held by the Trust. This
means that the Sponsor does not sell LTC at times when its price is high or acquire LTC at low prices in the expectation of future price
increases. It also means that the Sponsor does not make use of any hedging techniques that may be available to or utilized by professional
LTC investors to attempt to reduce the risks of losses resulting from price decreases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except as provided below under
the heading &ldquo;The Prime Broker and the Trade Credit Lender,&rdquo; the Trust, the Sponsor and the Trust&rsquo;s service providers
will not loan or pledge the Trust&rsquo;s assets, nor will the Trust&rsquo;s assets serve as collateral for any loan or similar arrangement,
nor will the Trust utilize leverage or similar arrangements in seeking to meet its investment objective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shareholders of the Trust
take no part in the management or control, and have no voice in, the Trust&rsquo;s operations or business. Except in limited circumstances,
Shareholders will have no voting rights under the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC is a digital commodity
based on an open-source protocol. LTC is not issued by any government, bank or central organization, and instead exist on an online, peer-to-peer
computer network that hosts a public transaction ledger where LTC transfers are recorded (the &ldquo;Litecoin Blockchain&rdquo;). The
Litecoin Blockchain is accessed through software, and software governs LTC creation, movement and ownership.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC has no physical existence
beyond the record of transactions on the Litecoin Blockchain. The Litecoin Blockchain is a public record of the creation, custody and
flow of funds of LTC, showing every transaction effected on the blockchain among users&rsquo; online &ldquo;digital wallets&rdquo; where
their LTC are effectively stored. LTC may be sent or received through users&rsquo; digital wallets by using public and private keys that
are part of the Litecoin Blockchain&rsquo;s cryptographic security mechanism.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares represent units
of fractional undivided beneficial interest in and ownership of the Trust and are expected to be traded under the ticker symbol &ldquo;________&rdquo;
on The Nasdaq Stock Market, LLC (&ldquo;Nasdaq&rdquo; or the &ldquo;Exchange&rdquo;). The Trust issues Baskets to Authorized Participants
on an ongoing basis in exchange for cash, which is used to purchase LTC that is deposited for safekeeping with the Custodians (as defined
below). The Trust will distribute cash by redeeming Shares in Baskets on an ongoing basis from Authorized Participants. See &ldquo;Description
of the Shares&mdash;Redemption of the Shares.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 6; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Compass Crypto Reference Index Litecoin - 4pm
NY Time</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Index, which was introduced
________, 202_, was designed to provide a daily, 4:00 p.m. ET reference rate of the U.S. dollar price of one LTC that may be used to develop
financial products. The Index uses the same methodology as the Compass Crypto Reference Index Litecoin (&ldquo;LRR&rdquo;). The only material
difference between the Index and the LRR is that the LRR measures the U.S. dollar price of one LTC as of 4:00 p.m. London time and the
Index measures the U.S. dollar price of one LTC as of 4:00 p.m. Eastern Time (&ldquo;ET&rdquo;). The administrator of the Index is Compass
Financial Technologies (the &ldquo;Benchmark Administrator&rdquo;). The Index and the LRR are representative of the LTC trading activity
on the Selected Exchanges, which include, as of the date of this Prospectus, ____, ____, ____, ____, ____ and ____. For more information
on the Index and the LRR, see <I>&ldquo;Use Of The Compass Crypto Reference Index XRP - 4pm NY Time&rdquo;</I> below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust uses the Index to
calculate its daily NAV and to calculate an updated intraday indicative value (&ldquo;IIV&rdquo;). The IIV is intended to provide additional
information not otherwise available to the public that may be useful to investors and market professionals in connection with the trading
of the Shares on the Exchange. It is calculated by using the prior day&rsquo;s holdings at close of business. The IIV will be disseminated
on a per-Share basis every 15 seconds during regular Exchange trading hours of 9:30 a.m. to 4:00 p.m. ET.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor believes that
the use of the Index is reflective of a reasonable valuation of the average spot price of LTC and that resistance to manipulation is a
priority aim of its design methodology. The methodology: (i)&nbsp;takes an observation period and divides it in twelve (12) time-equally
sized partitions of trade records; (ii)&nbsp;then calculates the volume-weighted median of all trade prices within each partition; and
(iii)&nbsp;determines the value from the arithmetic mean of the volume-weighted medians, equally weighted. By employing the foregoing
steps, the Index thereby seeks to ensure that transactions in LTC conducted at outlying prices do not have an undue effect on the value
of a specific partition, large trades or clusters of trades transacted over a short period of time will not have an undue influence on
the index level, and the effect of large trades at prices that deviate from the prevailing price are mitigated from having an undue influence
on the benchmark level.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the Sponsor notes
that an oversight function is implemented by the Benchmark Administrator in seeking to ensure that the Index is administered through codified
policies for Index integrity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Index data and the description
of the Index are based on information made publicly available by the Benchmark Administrator on its website at https://www.compass-ft.com.
None of the information on the Benchmark Administrator&rsquo;s website is incorporated by reference into this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Custody of the Trust&rsquo;s Assets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ (the &ldquo;________Custodian&rdquo;),
________ (&ldquo;________&rdquo;) and ________ (&ldquo;________&rdquo; and collectively with ________ and ________, the &ldquo;Custodians&rdquo;)
will custody of all of the Trust&rsquo;s LTC, other than that which may be maintained in a trading account (the &ldquo;Trading Account&rdquo;)
with ________ (the &ldquo;Prime Broker,&rdquo; which is an affiliate of the ________ Custodian), in accounts that are required to be segregated
from the assets held by the Custodians as principal and the assets of its other customers (the &ldquo;Vault Accounts&rdquo;). The Custodians
will keep all of the private keys associated with the Trust&rsquo;s LTC held by the Custodians in the Vault Accounts in &ldquo;cold storage,&rdquo;
which refers to a safeguarding method by which the private keys corresponding to the Trust&rsquo;s LTC are generated and stored in an
offline manner using computers or devices that are not connected to the Internet, which is intended to make them more resistant to hacking.
CoinShares International Limited, the parent of the Sponsor, holds a minority equity interest in ________, which is therefore an affiliate
of the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A portion of the Trust&rsquo;s
LTC holdings and cash holdings may be held with the Prime Broker in the Trading Account to pay the Sponsor&rsquo;s Fee and in connection
with the purchase and sale of LTC related to creations and redemptions of Baskets and Trust expenses not assumed by the Sponsor. Within
the Trust&rsquo;s Trading Account, the Prime Broker Agreement provides that the Trust does not have an identifiable claim to any particular
LTC (and cash). Instead, the Trading Account represents an entitlement to a <I>pro rata</I> share of the LTC (and cash) the Prime Broker
holds on behalf of customers who hold similar entitlements against the Prime Broker. In this way, the Trust&rsquo;s Trading Account represents
an omnibus claim on the Prime Broker&rsquo;s LTC (and cash) held on behalf of the Prime Broker&rsquo;s customers. The Prime Broker holds
the LTC associated with customer entitlements across a combination of omnibus cold wallets, omnibus &ldquo;hot wallets&rdquo; (meaning
wallets whose private keys are generated and stored online, in Internet-connected computers or devices) or in omnibus accounts in the
Prime Broker&rsquo;s name on a trading venue (including third-party venues and the Prime Broker&rsquo;s own execution venue) where the
Prime Broker executes orders to buy and sell LTC on behalf of its clients. Within such omnibus hot and cold wallets and accounts, the
Prime Broker has represented to the Sponsor that it keeps the majority of assets in cold wallets, to promote security, while the balance
of assets is kept in hot wallets to facilitate rapid withdrawals. However, the Sponsor has no control over, and for security reasons the
Prime Broker does not disclose to the Sponsor, the percentage of LTC that the Prime Broker holds for customers holding similar entitlements
as the Trust which are kept in omnibus cold wallets, as compared to omnibus hot wallets or omnibus accounts in the Prime Broker&rsquo;s
name on a trading venue. The Prime Broker has represented to the Sponsor that the percentage of assets maintained in cold versus hot storage
is determined by ongoing risk analysis and market dynamics, in which the Prime Broker attempts to balance anticipated liquidity needs
for its customers as a class against the anticipated greater security of cold storage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

</DIV>

<!-- Field: Page; Sequence: 7; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Other than the LTC held with
the Prime Broker in the Trading Account, the Sponsor will allocate the Trust&rsquo;s LTC between Vault Accounts at the ________ Custodian,
________and ________. In determining the amount and percentage of the Trust&rsquo;s LTC to allocate to each Vault Account, the Sponsor
will consider (i) the concentration of the Trust&rsquo;s LTC at each Custodian, (ii) the Sponsor&rsquo;s assessment of the safety and
security policies and procedures of each Custodian, (iii) the insurance policies of each Custodian, (iv) the fees and expenses associated
with the storage of the Trust&rsquo;s LTC at each Custodian, (v) the fees and expenses associated with the transfer to or from the Vault
Account at each Custodian, and (vi) any other factor the Sponsor deems relevant in making the allocation determination. The Sponsor does
not intend to disclose the amount or percentage of the Trust&rsquo;s LTC held at the ________Custodian, ________or ________, and the Sponsor
may change the allocation between the Custodians at any time and without notice to Shareholders. The fees and expenses associated with
the transfer of LTC between the Vault Accounts at each Custodian will be borne by the Sponsor, not the Trust or the Shareholders. Any
transfer of ________ between the Vault Accounts at each Custodian will occur &ldquo;on-chain&rdquo; over the Litecoin Blockchain. On-chain
transactions are subject to all of the risks of the Litecoin Blockchain, including the risk that transactions will be made erroneously
and are generally irreversible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Purchases and Sales of LTC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because the Trust will conduct
creations and redemptions of Shares for cash, it will be responsible for purchasing and selling LTC in connection with those creation
and redemption orders. The Trust may also be required to sell LTC to pay certain extraordinary, non-recurring expenses that are not assumed
by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor, on behalf of
the Trust, is responsible for acquiring LTC from a LTC trading counterparty that has been approved by the Sponsor (each, an &ldquo;LTC
Trading Counterparty&rdquo;). ________ (the &ldquo;Prime Broker&rdquo;) was the Trust&rsquo;s initial LTC Trading Counterparty. The LTC
Trading Counterparties with which the Sponsor will engage in LTC transactions are unaffiliated third parties and all transactions will
be done on an arm&rsquo;s-length basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Trust&rsquo;s
creation and redemption processes, Authorized Participants and the Trust do not settle the cash for creation or redemption orders until
the day after the order is placed, while the Trust makes purchases and sales of LTC in connection with creations and redemption orders
on the day of the order. To facilitate this settlement of creation and redemption orders, the Trust may borrow LTC or cash as trade credit
(&ldquo;Trade Credit&rdquo;) from ________ (the &ldquo;Trade Credit Lender&rdquo;), an affiliate of ________, on a short-term basis pursuant
to the ________ (the &ldquo;Trade Financing Agreement&rdquo;) to cover the short-term transactional needs of the Trust. Pursuant to the
Authorized Participant Agreement, the Trust does not bear the ultimate cost of the Trade Credits or the Trade Financing Agreement, as
those expenses are borne by the Authorized Participants during the order process. Due to the timing of creation and redemption procedures
of the Trust, the Sponsor anticipates that any agreements with subsequent LTC Trading Counterparties will require similar trade financing
arrangements to settle LTC and cash transactions on the day of order placement. The Sponsor, on behalf of the Trust, may engage additional
LTC Trading Counterparties at any time. The list of the current LTC Trading Counterparties will be included in the Trust&rsquo;s Annual
Reports on Form 10-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Summary of Risk Factors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An investment in the Trust
involves risks described in the section below entitled &ldquo;Risk Factors&rdquo; and elsewhere in this prospectus. Some of these risks
are summarized below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Risks Associated with LTC and the Litecoin
Blockchain.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC is a relatively new technological
innovation with a limited history. There is no assurance that usage of the Litecoin Blockchain or LTC will continue to grow. A contraction
in the use or adoption of LTC may result in increased volatility or a reduction in the price of LTC, which could adversely impact the
value of the Shares. Sales of LTC that have been newly released from escrow may cause the price of LTC to decline, which could negatively
affect an investment in the Shares. LTC markets have a limited history, LTC trading prices have exhibited high levels of volatility, and
in some cases such volatility has been sudden and extreme. Because of such volatility, Shareholders could lose all or substantially all
of their investment in the Trust. Regulation of the use of LTC and the Litecoin Blockchain continues to evolve both in the United States
and in foreign jurisdictions, which may restrict the use of LTC or otherwise impact the demand for LTC. Disruptions at digital asset trading
platforms could adversely affect the availability of LTC and the ability of Authorized Participants to purchase or sell LTC and, therefore,
their ability to create and redeem Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

</DIV>

<!-- Field: Page; Sequence: 8; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Spot markets on which LTC
trades are relatively new and largely unregulated or may not be complying with existing regulations and, therefore, may be more exposed
to fraud and security breaches than established, regulated exchanges for other financial assets or instruments, which could have a negative
impact on the performance of the Trust. Disruptions at LTC spot markets, futures markets and in the over-the-counter (&ldquo;OTC&rdquo;)
markets could adversely affect the availability of LTC and the ability of Authorized Participants (as defined below) to purchase or sell
LTC or LTC derivatives (or provide cash in relation thereto) and therefore their ability to create and redeem Shares of the Trust. The
loss or destruction of certain &ldquo;private keys,&rdquo; including by the Custodian, could prevent the Trust from accessing its LTC.
Loss of these private keys may be irreversible and could result in the loss of all or substantially all of an investment in the Trust.
Loss of private keys may also impede the Trust&rsquo;s ability to operate, including by limiting the Trust&rsquo;s ability to transfer
LTC in the face of a redemption request and forcing the Trust to consider liquidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Risks Associated with Investing in the Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders may choose to
use the Trust as a means of investing indirectly in LTC. As noted, there are significant risks and hazards inherent in the LTC market
that may cause the price of LTC to fluctuate widely. Shareholders considering a purchase of Shares of the Trust should carefully consider
what percentage of their total assets should be exposed to the LTC market, and should fully understand, be willing to assume, and have
the financial resources necessary to withstand the risks involved in the Trust&rsquo;s investment strategy, and be in a position to bear
the potential loss of their entire investment in the Trust. Because the value of LTC, and thus the value of the Shares, may be extremely
volatile, Shareholders will need to monitor their investment frequently.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is no assurance that
the Trust will generate a profit for investors. In addition, an actual or perceived breach of the Trust&rsquo;s accounts with the Custodians
could harm the Trust&rsquo;s operations, result in partial or total loss of the Trust&rsquo;s assets, damage the Trust&rsquo;s reputation
and negatively affect the market perception of the effectiveness of the Trust, all of which could in turn reduce demand for the Shares,
resulting in a reduction in the price of the Shares. The Trust may also cease operations, the occurrence of which could similarly result
in a reduction in the price of the Shares. Any investment made in the Trust may result in a total loss of the investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s return will
not match the performance of the Index because the Trust incurs operating expenses. Moreover, the net asset value (&ldquo;NAV&rdquo;)
of the Trust may deviate from the market price of its Shares for a number of reasons, including price volatility, trading activity, normal
trading hours for the Trust, the calculation methodology of the NAV, and/or the closing of LTC trading platforms due to fraud, failure,
security breaches or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The amount of LTC represented
by the Shares will continue to be reduced during the life of the Trust due to the transfer of the Trust&rsquo;s LTC to pay for the Sponsor&rsquo;s
Fee and other liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Trust Structure</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is a Delaware statutory
trust, organized on December 10, 2024, that operates pursuant to the Trust Agreement. The Trust has entered into a brokerage and custody
agreement with the ________ (the &ldquo;________Custody Agreement&rdquo;) and separate custodial services agreements with ________ (the
&ldquo;________Custody Agreement&rdquo;) and ________ (the &ldquo;________Custody Agreement&rdquo;, and collectively with the ________Custody
Agreement&rdquo; and the &ldquo;________Custody Agreement,&rdquo; the &ldquo;Custody Agreements&rdquo;), pursuant to which the Custodians
will custody all of the Trust&rsquo;s LTC, other than that which may be maintained in a trading account with the Prime Broker from time
to time. ________ is a separate entity but an affiliate of the ________Custodian and is also a broker of the Trust. Pursuant to the Custody
Agreements, the Custodians established accounts that hold the LTC deposited with the respective Custodian on behalf of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s current
Sponsor is CoinShares Co., a Delaware corporation and a wholly owned subsidiary of CoinShares International Limited. Under the Delaware
General Corporation Law Act and the governing documents of the Sponsor, CoinShares International Limited, the sole shareholder of the
Sponsor, is not responsible for the debts, obligations and liabilities of the Sponsor solely by reason of being the sole shareholder of
the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

</DIV>

<!-- Field: Page; Sequence: 9; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor arranged for the
creation of the Trust and the Sponsor arranges for the registration of the Shares for their public offering in the United States and their
listing on Nasdaq. The Sponsor is obligated to assume and pay the following fees and expenses of the Trust: the Trustee&rsquo;s fee payable
under the Trust Agreement, the Custodian Fee (as defined herein), the Cash Custodian Fee (as defined herein), the Transfer Agent Fee (as
defined herein), the Marketing Fee (as defined herein), applicable license fees, including the licensing fees related to the Index License
Agreement (as defined herein), the fees of the Prime Broker (as defined herein), the Administrator Fee (as defined herein), fees and expenses
related to trading of Shares on Nasdaq (including marketing, legal and audit fees and expenses), legal expenses, audit fees, regulatory
fees, including any fees relating to the registration of the Shares with the SEC, printing and mailing costs and costs of maintaining
the Trust&rsquo;s website. The Sponsor paid the costs of the Trust&rsquo;s organization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor and the Administrator
are generally responsible for the administration of the Trust under the provisions of the Trust Agreement. The responsibilities of the
Sponsor include (i)&nbsp;selecting and monitoring the Trust&rsquo;s Service Providers (as defined herein) and from time to time engaging
additional, successor or replacement Service Providers and (ii)&nbsp;upon dissolution of the Trust, distributing the Trust&rsquo;s remaining
LTC or the cash proceeds of the sale of the Trust&rsquo;s remaining LTC (determined at the sole discretion of the Sponsor) to the owners
of record of the Shares. The responsibilities of the Administrator include (i)&nbsp;preparing and providing periodic reports on behalf
of the Trust to investors, (ii)&nbsp;processing orders to create and redeem Baskets and coordinating the processing of such orders with
the Cash Custodian, the Transfer Agent and the Depository Trust Company (&ldquo;DTC&rdquo;), (iii)&nbsp;publishing the Trust&rsquo;s LTC
Holdings and LTC Holdings per Share (each as defined herein) each business day at 4:00 p.m. ET, or as soon thereafter as practicable and
(iv)&nbsp;instructing the Custodians or the Prime Broker to transfer the Trust&rsquo;s LTC, as needed to pay the Sponsor&rsquo;s Fee and
any Additional Trust Expenses (each as defined herein).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the Trust&rsquo;s
LTC are not stored in a physical sense, a record of the Trust&rsquo;s LTC are identifiable on the Litecoin Blockchain via digital addresses
established by the Custodians. These digital addresses are contained in a Trading Account and the Vault Accounts (each as defined herein)
which together constitute the &ldquo;LTC Account.&rdquo; The LTC Account consists of multi-signature digital addresses, which require
several distinct &ldquo;private keys&rdquo; to authenticate access to and transfer of the Trust&rsquo;s LTC from the LTC Account. Notwithstanding
LTC payable to the Sponsor for its management fee or LTC deposited into or removed from the Trust in connection with sales and purchases
related to the creation or redemption of Baskets, respectively, the Sponsor endeavors to instruct the Custodians to maintain all of the
Trust&rsquo;s LTC within a Vault Account. The Custodians are responsible for the safekeeping of the Trust&rsquo;s private keys used to
access the LTC Account and facilitates the transfer of LTC in accordance with the Sponsor&rsquo;s instructions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The general role, responsibilities
and regulation of the Sponsor, Trustee, Administrator and Custodians are further described in &ldquo;The Sponsor,&rdquo; &ldquo;The Trustee,&rdquo;
&ldquo;The Administrator&rdquo; and &ldquo;The Custodians,&rdquo; respectively. Detailed descriptions of certain specific rights and duties
of the Sponsor, Trustee, Administrator and Custodian are set forth in &ldquo;Description of the Trust Documents&mdash;Description of the
Trust Agreement&rdquo; and &ldquo;&mdash;Description of the Custody Agreements,&rdquo; respectively. The Trust Agreement and Custody Agreements
are collectively referred to herein as &ldquo;Trust Documents.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>LTC History</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Litecoin Blockchain is
a recent technological innovation, and the LTC that are created, transferred, used and stored by entities and individuals have certain
features associated with several types of assets, most notably commodities and currencies. Many U.S. regulators, including the Financial
Crimes Enforcement Network of the U.S. Department of the Treasury (&ldquo;FinCEN&rdquo;), the CFTC, the U.S. Internal Revenue Service
(&ldquo;IRS&rdquo;), and state regulators, including the New York Department of Financial Services (&ldquo;NYDFS&rdquo;), have made official
pronouncements or issued guidance or rules regarding the treatment of LTC and other digital currencies. However, other U.S. and state
agencies, such as the SEC, have not made official pronouncements or issued guidance or rules regarding the treatment of LTC. Similarly,
the treatment of LTC and other digital currencies is often uncertain or contradictory in other countries. The regulatory uncertainty surrounding
the treatment of LTC creates risks for the Trust and its Shares. See &ldquo;Risk Factors&mdash;Risk Factors Related to the Regulation
of the Trust and the Shares.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

</DIV>

<!-- Field: Page; Sequence: 10; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Some of the notable features
of the Trust and its Shares include the holding of LTC in the Trust&rsquo;s own accounts, the experience of the Sponsor&rsquo;s management
team in the LTC industry and the use of the Custodians to protect the Trust&rsquo;s private keys. See &ldquo;Activities of the Trust.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>Emerging
Growth Company Status</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is an &ldquo;emerging
growth company&rdquo; as defined in the Jumpstart Our Business Startups Act of 2012 (the &ldquo;JOBS Act&rdquo;). For as long as the Trust
is an emerging growth company, unlike other public companies, it will not be required to, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provide an auditor&rsquo;s attestation report on management&rsquo;s assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">comply with any new audit rules adopted by the PCAOB after April 5, 2012, unless the SEC determines otherwise.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will cease to be
an &ldquo;emerging growth company&rdquo; upon the earliest of (i) its having $1.235 billion or more in annual revenues, (ii) at least
$700 million in market value of Shares being held by non-affiliates, (iii) its issuing more than $1.0 billion of non-convertible debt
over a three-year period or (iv) the last day of the fiscal year following the fifth anniversary of its initial public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, Section 107 of
the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B)
of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the
adoption of certain accounting standards until those standards would otherwise apply to private companies; however, the Trust is choosing
to &ldquo;opt out&rdquo; of such extended transition period and, as a result, the Trust will comply with new or revised accounting standards
on the relevant dates on which adoption of such standards is required for non-emerging growth companies. Section 107 of the JOBS Act provides
that the Trust&rsquo;s decision to opt out of the extended transition period for complying with new or revised accounting standards is
irrevocable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>Principal
Offices</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee&rsquo;s principal
office is located at 251 Little Falls Drive, Wilmington, DE 19808. The Sponsor&rsquo;s principal office is located at 437 Madison Avenue,
28<SUP>th</SUP> Floor, New York, NY 10022 and its telephone number is 646-308-1518.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

</DIV>

<!-- Field: Page; Sequence: 11; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_004"></A>THE OFFERING</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares Offered by the Trust </FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares representing units of fractional undivided beneficial interest in, and ownership of, the Trust.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use of Proceeds </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proceeds received by the Trust from the issuance and sale of Baskets will consist of cash. The Trust is obligated to convert any cash contributed to LTC as soon as practicable, except to the extent necessary to pay expenses or facilitate redemptions. Deposits of cash are held by the Cash Custodian or the Prime Broker on behalf of the Trust until (i) transferred in connection with the purchase of LTC that is subsequently deposited with the Custodians, (ii) delivered in connection with redemptions of Baskets or (iii) transferred to pay fees due to the Sponsor and Trust expenses and liabilities not assumed by the Sponsor.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nasdaq Exchange Symbol</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">_______</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">LTC Index Price </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For purposes of determining the value of the Trust&rsquo;s LTC, the Trust uses the Index to calculate a per-LTC value in U.S. dollars (the &ldquo;LTC Index Price&rdquo;). The LTC Index Price is published between 4:00 p.m. and 4:30 p.m. ET on each trading day. </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For more information on the Compass Crypto Reference Index Litecoin - 4pm NY Time, see &ldquo;Use of the Compass Crypto Reference Index Litecoin - 4pm NY Time and &ldquo;Calculation of NAV&rdquo; below.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CUSIP</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Creation and Redemption </FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Trust issues Shares on an ongoing basis, but only in one or more whole Baskets. The Trust intends to redeem Shares in Baskets on an ongoing basis from Authorized Participants. See &ldquo;Description of the Shares&mdash;Redemption of the Shares.&rdquo;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A Basket equals 5,000 Shares. As of ________, 2025, each Share represents approximately ________ of an LTC. See &ldquo;Description of Creation and Redemption of Shares.&rdquo;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Baskets are issued and redeemed in exchange for delivery to the Trust or the distribution by the Trust of the amount of cash represented by the Shares being created or redeemed, the amount of which is based on the value of the LTC attributable to each Share of the Trust (net of accrued but unpaid Sponsor&rsquo;s Fees and any accrued but unpaid expenses or liabilities) being created or redeemed determined as of 4:00 p.m. ET on the day the order to create or redeem Baskets is properly received. The Trust is obligated to convert any cash contributed to LTC as soon as practicable, except to the extent necessary to pay expenses. The number of LTC represented by a Basket will gradually decrease over time due to the transfer of the Trust&rsquo;s LTC to pay the Sponsor&rsquo;s Fee and sale of the Trust&rsquo;s LTC to pay any Trust expenses not assumed by the Sponsor. The Trust will not accept or distribute LTC in exchange for Baskets. See &ldquo;Description of Creation and Redemption of Shares&rdquo; and &ldquo;Activities of the Trust&mdash;Trust Expenses.&rdquo;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 12; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Trust&rsquo;s LTC Holdings </FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Trust&rsquo;s &ldquo;LTC Holdings&rdquo; is the amount of the Trust&rsquo;s LTC less its liabilities (which include estimated accrued but unpaid fees and expenses), as calculated using the LTC Index Price. The Administrator calculates the Trust&rsquo;s LTC Holdings on a daily basis. </FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Administrator also calculates the Trust&rsquo;s LTC Holdings per Share, which equals the Trust&rsquo;s LTC Holdings divided by the number of Shares then outstanding. The Sponsor will publish the Trust&rsquo;s LTC Holdings and LTC Holdings per Share each business day as of 4:00 p.m. ET or as soon thereafter as practicable at the Trust&rsquo;s website at https://coinshares.com/us/etf/____/.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trust Expenses </FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Trust&rsquo;s only ordinary recurring expense is expected to be the remuneration due to the Sponsor (the &ldquo;Sponsor&rsquo;s Fee&rdquo;). The Sponsor&rsquo;s Fee will be accrued daily by applying a 0.25% annual rate to the Trust&rsquo;s LTC Holdings. The Sponsor&rsquo;s Fee will be payable in LTC at such times as determined at the Sponsor&rsquo;s sole discretion. </FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 58%">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To pay the Sponsor&rsquo;s Fee, the Custodians
    or Prime Broker will, when directed by the Sponsor, (i) withdraw from the LTC Account the number of LTC equal to the accrued but unpaid
    Sponsor&rsquo;s Fee, determined as described above, and (ii) transfer such LTC to an account affiliated with the Sponsor. The Trust is
    not responsible for paying any fees or costs associated with the transfer of LTC to the Sponsor or the sale of LTC for costs not included
    in the Sponsor&rsquo;s Fee.</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sponsor, from time to time, may waive all
    or a portion of the Sponsor&rsquo;s Fee at its discretion for stated periods of time. The Sponsor is under no obligation to extend a waiver
    after the end of any such stated period, and, if such waiver is not continued, the Sponsor&rsquo;s Fee will be paid in full for subsequent
    periods. Furthermore, the Sponsor may, in its sole discretion, agree to rebate all or a portion of the Sponsor&rsquo;s Fee attributable
    to Shares held by certain institutional investors subject to minimum Share holding and lock up requirements as determined by the Sponsor
    to foster stability in the Trust&rsquo;s asset levels. Any such rebate will be subject to negotiation and written agreement between the
    Sponsor and the investor on a case-by-case basis. The Sponsor is under no obligation to provide any rebates of the Sponsor&rsquo;s Fee.
    Neither the Trust nor the Trustee will be a party to any Sponsor&rsquo;s Fee rebate arrangements negotiated by the Sponsor.</P></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As consideration for its receipt of the Sponsor&rsquo;s Fee, the Sponsor is obligated to assume and pay the following fees and expenses of the Trust: the Marketing Fee, the Administrator Fee, the Custodian Fee, the Prime Broker Fee, the Cash Custodian Fee, the Transfer Agent Fee, the Trustee&rsquo;s fee, applicable license fees, including the licensing fees related to the Index License Agreement, fees and expenses related to trading of Shares on Nasdaq (including marketing, legal and audit fees and expenses), ordinary course legal expenses, audit fees, regulatory fees, including any fees relating to the registration of the Shares with the SEC, printing and mailing costs and costs of maintaining the Trust&rsquo;s website (the &ldquo;Sponsor-paid Expenses&rdquo;). There is no cap on the amount of Sponsor-paid Expenses. The Sponsor has also assumed all fees and expenses related to the organization and offering of the Trust and the Shares. At the Sponsor&rsquo;s sole discretion, all or any portion of a Sponsor-paid Expense may be redesignated as an Additional Trust Expense.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

</DIV>

<!-- Field: Page; Sequence: 13; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 58%">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Trust may incur certain extraordinary, non-recurring
    expenses and indemnification expenses that are not contractually assumed by the Sponsor (collectively, &ldquo;Additional Trust Expenses&rdquo;).</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To cover Additional Trust Expenses, the Sponsor
    or its delegate may cause the Trust (or its delegate) to convert LTC into U.S. dollars at the price available through the Prime Broker&rsquo;s
    ________ Prime service (less applicable trading fees) through the Trading Platform which the Sponsor is able to obtain using commercially
    reasonable efforts. The number of LTC represented by a Share will decline each time the Trust pays Additional Trust Expenses by transferring
    or selling LTC.</P></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The number of LTC to be delivered to the Sponsor in payment of the Sponsor&rsquo;s Fee or sold to pay Additional Trust Expenses will vary from time to time depending on the level of the Trust&rsquo;s expenses and the value of LTC, as determined using the LTC Index Price or, in certain circumstances, such other fair value measurement as determined by the Sponsor. See &ldquo;Activities of the Trust&mdash;Trust Expenses.&rdquo;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transfers of LTC</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transfers of LTC (i) to and from a Vault Account and a different Vault Account, (ii) to and from a Vault Account and the Trading Account, and (iii)&nbsp;from the Trading Account to third-party digital asset brokers or dealers are conducted &ldquo;on chain&rdquo; in transactions represented on the Litecoin Blockchain. On-chain transactions are subject to all of the risks of the Litecoin Blockchain, including the risk that transactions will be made erroneously and are generally irreversible.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In order to pay the Sponsor&rsquo;s Fee, the Sponsor will transfer LTC from a Vault Account or Trading Account to an account affiliated with the Sponsor.&nbsp;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Termination Events </FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon dissolution of the Trust, the Sponsor will distribute the Trust&rsquo;s remaining LTC or the cash proceeds of the sale of the Trust&rsquo;s remaining LTC (determined at the sole discretion of the Sponsor) to the owners of record of the Shares, after the Sponsor has paid or made provision for the Trust&rsquo;s obligations. Accordingly, Shareholders of record at the time of a liquidation may receive either LTC or cash. See &ldquo;Description of the Trust Agreement&mdash;The Trustee&mdash;Termination of the Trust.&rdquo;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Authorized Participants </FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Baskets may be created or redeemed only by Authorized Participants. Each Authorized Participant must (i) be a registered broker-dealer or other securities market participant, such as a bank or other financial institution, that is not required to register as a broker-dealer to engage in securities transactions and (ii) have entered into an Authorized Participant Agreement with the Sponsor, and the Marketing Agent. See &ldquo;Description of Creation and Redemption of Shares.&rdquo;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As of the date of this prospectus, the Trust has engaged ________, ________, ________, ________ and ________. as Authorized Participants. Additional Authorized Participants may be added at any time, subject to the discretion of the Sponsor.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Clearance and Settlement </FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 58%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Shares are evidenced by one or more global certificates that the Transfer Agent issues to DTC. The Shares are, and will only be, available in book-entry form. Shareholders may hold their Shares through DTC if they are direct participants in DTC (&ldquo;DTC Participants&rdquo;), or indirectly through entities that are DTC Participants.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

</DIV>

<!-- Field: Page; Sequence: 14; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_005"></A>RISK FACTORS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>You should consider carefully
the risks described below before making an investment decision. You should also refer to the other information included in this prospectus,
including the Trust&rsquo;s financial statements and related notes thereto.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>Risk Factors
Related to LTC, the Litecoin Blockchain and the Litecoin Network</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The value of the
Shares relates directly to the price of LTC, the value of which may be highly volatile and subject to fluctuations due to a number of
factors.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal; background-color: white">The
value of the Shares relates directly to the value of the LTC held by the Trust and fluctuations in the price of LTC could adversely affect
the value of the Shares. The market price of LTC may be highly volatile, and subject to a number of factors, including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">An increase in the global LTC supply;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Manipulative trading activity on digital asset trading platforms, which, in many cases, are largely unregulated;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The adoption of LTC as a medium of exchange, store-of-value or other consumptive asset and the maintenance
and development of the open-source software protocol of the Litecoin Network;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Forks in the Litecoin Network;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Investors&rsquo; expectations with respect to interest rates, the rates of inflation of fiat currencies
or LTC, and digital asset trading platform rates;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Consumer preferences and perceptions of LTC specifically and digital assets generally;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Fiat currency withdrawal and deposit policies on digital asset trading platforms;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The liquidity of digital asset markets and any increase or decrease in trading volume on digital asset
markets;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Investment and trading activities of large investors that invest directly or indirectly in LTC;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">An active derivatives market for LTC or for digital assets generally;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">A determination that LTC is a security or changes in LTC&rsquo;s status under the federal securities laws;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Monetary policies of governments, trade restrictions, currency devaluations and revaluations and regulatory
measures or enforcement actions, if any, that restrict the use of LTC as a form of payment or the purchase of LTC on the digital asset
markets;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Global or regional political, economic or financial conditions, events and situations, such as the novel
coronavirus outbreak;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Fees associated with processing a LTC transaction and the speed at which LTC transactions are settled;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Interruptions in service from or closures or failures of major digital asset trading platforms;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Decreased confidence in digital asset trading platforms due to the largely unregulated nature and lack
of transparency surrounding the operations of digital asset trading platforms;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Increased competition from other forms of digital assets or payment services; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">The Trust&rsquo;s own acquisitions or dispositions of LTC, since there is no limit on the number of LTC
that the Trust may acquire.</TD></TR></TABLE>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">In
addition, there is no assurance that LTC will maintain its value in the long or intermediate term. In the event that the price of LTC
declines, the Sponsor expects the value of the Shares to decline proportionately. </FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">The
price of LTC as represented by the Index or by the Trust&rsquo;s principal market may also be subject to momentum pricing due to speculation
regarding future appreciation in value, leading to greater volatility that could adversely affect the value of the Shares. Momentum pricing
typically is associated with growth stocks and other assets whose valuation, as determined by the investing public, accounts for future
appreciation in value, if any. The Sponsor believes that momentum pricing of LTC has resulted, and may continue to result, in speculation
regarding future appreciation in the price of LTC, inflating and making the price of LTC more volatile. As a result, LTC may be more likely
to fluctuate in value due to changing investor confidence, which could impact future appreciation or depreciation in the Index and could
adversely affect the value of the Shares.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 15; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC is a relatively
new technological innovation with a limited operating history.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC has a relatively limited
history of existence and operations. There is a limited established performance record for the price of LTC and, in turn, a limited basis
for evaluating an investment in LTC. Although past performance is not necessarily indicative of future results, if LTC had a more established
history, such history might (or might not) provide investors with more information on which to evaluate an investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>A decline in the adoption
of LTC, the Litecoin Network or the Litecoin Blockchain could negatively impact the Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor will not have
any strategy relating to the development of LTC, the Litecoin Network or the Litecoin Blockchain. However, a lack of expansion in usage
of LTC, the Litecoin Network and the Litecoin Blockchain could adversely affect an investment in Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The further development and
acceptance of the Litecoin Network, which is part of a new and rapidly changing industry, is subject to a variety of factors that are
difficult to evaluate. The slowing, stopping or reversing of the development or acceptance or usage of the Litecoin Network or Litecoin
Blockchain may adversely affect the price of LTC and therefore an investment in the Shares. The further adoption of LTC will require growth
of the Litecoin Network. Adoption of LTC will also require an accommodating regulatory environment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The use of digital assets
such as LTC to, among other things, buy and sell goods or services or facilitate cross-border payments is part of a new and rapidly evolving
industry that employs digital assets based upon computer-generated mathematical and/or cryptographic protocols. The Litecoin Network is
a prominent, but not unique, part of this industry. The growth of this industry is subject to a high degree of uncertainty, as new assets
and technological innovations continue to develop and evolve.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Today, there is limited use
of LTC in the retail, commercial, or payments spaces, and, on a relative basis, speculators make up a significant portion of users. Certain
merchants and major retail and commercial businesses have only recently begun accepting LTC and the Litecoin Blockchain as a means of
payment for goods and services. This pattern may contribute to outsized price volatility, which in turn can make LTC less attractive to
merchants and commercial parties as a means of payment. A lack of expansion by LTC into retail and commercial markets or a contraction
of such use may result in a reduction in the price of LTC, which could adversely affect an investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, there is no assurance
that LTC will maintain its value over the long term. The price of LTC is subject to risks related to its usage. Even if growth in Litecoin
Network adoption occurs in the near or medium term, there is no assurance that LTC usage will continue to grow over the long term. A contraction
in use of LTC may result in increased volatility or a reduction in the price of LTC, which would adversely impact the value of the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The fixed supply
of LTC may negatively impact the operation of the Litecoin Blockchain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.75pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.75pt; background-color: white">The
Litecoin Blockchain is structured to allow a maximum of 84 million LTC to be created, which are mined over time with the creation of each
new block. The supply of new LTC is mathematically controlled so that the number of LTC grows at a limited rate pursuant to a pre-set
schedule. The number of LTC awarded for solving a new block is automatically halved after every 840,000 blocks are added to the Litecoin
Blockchain. Currently, the fixed reward for solving a new block is 6.25 LTC per block, and this is expected to decrease by half to become
3.125 LTC after the next 840,000 blocks since the last reward reduction have entered the Litecoin Network, which is expected to be approximately
July 2027. This deliberately controlled rate of LTC creation means that the number of LTC in existence will increase at a controlled rate
until the number of LTC in existence reaches 84 million LTC. As of ________, 202_, approximately ____ million LTC were outstanding, and
estimates of when the 84 million LTC limitation will be reached range from at or near the year 2140.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">The
fixed supply of LTC could also contribute to price volatility, especially if demand fluctuates significantly. Since the supply of LTC
is fixed, any significant surge in demand can result in large price spikes. For example, during periods of high market activity or speculation,
the price of LTC could rapidly increase due to the inability to expand supply to match demand. This volatility could make LTC less predictable
for businesses that rely on it for payments. Digital assets with a flexible supply, such as stablecoins, can adjust to maintain a stable
value. LTC, however, could experience price swings that make it less attractive for everyday transactions or long-term financial planning.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal"></FONT></P>

<!-- Field: Page; Sequence: 16; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">The
fixed supply of LTC may also not scale well with rapidly expanding use cases. As more businesses, financial institutions, and payment
providers adopt LTC for cross-border transactions and other use cases, there is a risk that the fixed supply may not meet the growing
demand, leading to supply shortages and further price volatility. In the case of massive adoption, the scarcity of LTC could raise its
value too much, making it less appealing for day-to-day transactions or use as a liquidity bridge in cross-border payments, as businesses
might prefer a more stable and widely available currency.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will
not directly or indirectly participate in any staking program, and accordingly the Shareholders will not receive any staking rewards or
other income.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">The
Litecoin Blockchain does not use proof-of-stake validation. Accordingly, neither the Trust, nor the Sponsor, nor the Custodian, nor any
other person associated with the Trust will, directly or indirectly, engage in action where any portion of the Trust&rsquo;s LTC becomes
subject to proof-of-stake validation or is used to earn additional LTC or generate rewards or other income. Accordingly, the Trust may
underperform other pooled investment vehicles that may participate in staking.&nbsp; Investors who seek to participate in staking rewards
should consider other investment options.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The loss or destruction
of a private key required to access LTC may be irreversible. The Custodian&rsquo;s loss of access to a private key associated with the
Trust&rsquo;s LTC could adversely affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Transfers of LTC among users
are accomplished via LTC transactions (i.e., sending LTC from one user to another). The creation of an LTC transaction requires the use
of a unique numerical code known as a &ldquo;private key.&rdquo; In the absence of the correct private key corresponding to a holder&rsquo;s
particular LTC, the LTC is inaccessible. The custody of the Trust&rsquo;s LTC is handled by the Custodian, and the transfer of LTC to
and from Authorized Participants is directed by the Sponsor. The Sponsor has evaluated the procedures and internal controls of the Trust&rsquo;s
Custodian to safeguard the Trust&rsquo;s LTC holdings. If the Custodian&rsquo;s internal procedures and controls are inadequate to safeguard
the Trust&rsquo;s LTC holdings, and the Trust&rsquo;s private key(s) is(are) lost, destroyed or otherwise compromised and no backup of
the private key(s) is(are) accessible, the Trust will be unable to access its LTC, which could adversely affect an investment in the Shares.
In addition, if the Trust&rsquo;s private key(s) is(are) misappropriated and the Trust&rsquo;s LTC holdings are stolen, the Trust could
lose some or all of its LTC holdings, which could adversely impact an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">New competing
digital assets may result in a reduction in demand for LTC, which could have a negative impact on the price of LTC and may have a negative
impact on the performance of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC faces significant competition
from other digital assets, as well as from other technologies or payment forms, such as SWIFT, ACH, remittance networks, credit cards
and cash. There is no guarantee that LTC will become a dominant form of cross-border payments, store of value or method of exchange.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Competition from
central bank digital currencies (&ldquo;CBDCs&rdquo;) and emerging payments initiatives involving financial institutions could adversely
affect the price of LTC and other digital assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Central banks in various countries
have introduced digital forms of legal tender (&ldquo;CBDCs&rdquo;). China&rsquo;s CBDC project, known as Digital Currency Electronic
Payment, has reportedly been tested in a live pilot program conducted in multiple cities in China. Central banks representing at least
130 countries have published retail or wholesale CBDC work ranging from research to pilot projects. Whether or not they incorporate blockchain
or similar technology, CBDCs, as legal tender in the issuing jurisdiction, could have an advantage in competing with, or replace, LTC
and other cryptocurrencies as a medium of exchange or store of value. Central banks and other governmental entities have also announced
cooperative initiatives and consortia with private sector entities, with the goal of leveraging blockchain and other technology to reduce
friction in cross-border and interbank payments and settlement, and commercial banks and other financial institutions have also recently
announced a number of initiatives of their own to incorporate new technologies, including blockchain and similar technologies, into their
payments and settlement activities, which could compete with, or reduce the demand for, LTC. As a result of any of the foregoing factors,
the price of LTC could decrease, which could adversely affect an investment in the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 17; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The price of LTC
may be affected due to stablecoins (including Tether and USDC), the activities of stablecoin issuers and their regulatory treatment.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">While
the Trust does not invest in stablecoins, it may nonetheless be exposed to risks that stablecoins pose for the LTC market and other digital
asset markets. Stablecoins are digital assets designed to have a stable value over time as compared to typically volatile digital assets,
and are typically marketed as being pegged to a fiat currency, such as the U.S. dollar, at a certain value. Although the prices of stablecoins
are intended to be stable, their market value may fluctuate. This volatility has in the past apparently impacted the price of LTC. Stablecoins
are a relatively new phenomenon and it is impossible to know all of the risks that they could pose to participants in the LTC market.
In addition, some have argued that some stablecoins, particularly Tether, are improperly issued without sufficient backing in a way that,
when the stablecoin is used to pay for LTC, could cause artificial rather than genuine demand for LTC, artificially inflating the price
of LTC, and also argue that those associated with certain stablecoins may be involved in laundering money. On February 17, 2021, the New
York Attorney General entered into an agreement with Tether&rsquo;s operators, requiring them to cease any further trading activity with
New York persons and pay $18.5 million in penalties for false and misleading statements made regarding the assets backing Tether. On October
15, 2021, the CFTC announced a settlement with Tether&rsquo;s operators in which they agreed to pay $42.5 million in fines to settle charges
that, among others, Tether&rsquo;s claims that it maintained sufficient U.S. dollar reserves to back every Tether stablecoin in circulation
with the &ldquo;equivalent amount of corresponding fiat currency&rdquo; held by Tether were untrue.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">USDC
is a reserve-backed stablecoin issued by Circle Internet Financial that is commonly used as a method of payment in digital asset markets,
including the LTC market. While USDC is designed to maintain a stable value at US $1.00 at all times, on March 10, 2023, the value of
USDC fell below US $1.00 for multiple days after Circle Internet Financial disclosed that US$3.3 billion of the USDC reserves were held
at Silicon Valley Bank, which had entered FDIC receivership earlier that day. Stablecoins are reliant on the U.S. banking system and U.S.
treasuries, and the failure of either to function normally could impede the function of stablecoins, and therefore could adversely affect
the value of the Shares. </FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">Given
the foundational role that stablecoins play in global digital asset markets, their fundamental liquidity can have a dramatic impact on
the broader digital asset market, including the market for LTC. Because a large portion of the digital asset market still depends on stablecoins
such as Tether and USDC, there is a risk that a disorderly de-pegging or a run on Tether or USDC could lead to dramatic market volatility
in digital assets more broadly. Volatility in stablecoins, operational issues with stablecoins (for example, technical issues that prevent
settlement), concerns about the sufficiency of any reserves that support stablecoins or potential manipulative activity when unbacked
stablecoins are used to pay for other digital assets (including LTC), or regulatory concerns about stablecoin issuers or intermediaries,
such as exchanges, that support stablecoins, could impact individuals&rsquo; willingness to trade on trading venues that rely on stablecoins,
reduce liquidity in the LTC market, and affect the price of LTC, and in turn impact an investment in the Shares.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 18; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">If
the digital asset award for mining blocks and transaction fees for recording transactions on the Litecoin Network are not sufficiently
high to incentivize miners, or if certain jurisdictions continue to limit or otherwise regulate mining activities, miners may cease expanding
processing power or demand high transaction fees, which could negatively impact the value of LTC and the value of the Shares.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal; background-color: white">If
the digital asset awards for mining blocks or the transaction fees for recording transactions on the Litecoin Network are not sufficiently
high to incentivize miners, or if certain jurisdictions continue to limit or otherwise regulate mining activities, miners may cease expending
processing power to mine blocks and the security of the Litecoin Blockchain could be compromised. For example, the realization of one
or more of the following risks could materially adversely affect the value of the Shares:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Over the past several years, digital asset mining
operations have evolved from individual users mining with computer processors, graphics processing units and first-generation application
specific integrated circuit machines to &ldquo;professionalized&rdquo; mining operations using proprietary hardware or sophisticated machines.
If the profit margins of digital asset mining operations are not sufficiently high, including due to an increase in electricity costs,
digital asset miners are more likely to immediately sell digital assets earned by mining, resulting in an increase in liquid supply of
that digital asset, which would generally tend to reduce that digital asset&rsquo;s market price.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">A reduction in the processing power expended
by miners could increase the likelihood of a malicious actor or botnet obtaining control on the Litecoin Network. See <I>&ldquo;&mdash;If
a malicious actor or botnet obtains control of more than 50% of the processing power on the Litecoin Network, or otherwise obtains control
over the Litecoin Network through its influence over core developers or otherwise, such actor or botnet could manipulate the Blockchain
to adversely affect the value of the Shares or the ability of the Trust to operate.&rdquo;</I></FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Miners have historically accepted relatively
low transaction confirmation fees on most digital asset networks. If miners demand higher transaction fees for recording transactions
in the Litecoin Blockchain or a software upgrade automatically charges fees for all transactions on the Litecoin Network, the cost of
using LTC may increase and the marketplace may be reluctant to accept LTC as a means of payment. Miners may demand higher transaction
fees for a variety of reasons, including to compensate for reduction in the reward received for validating a block as a result of the
halving of LTC creation every 840,000 blocks in accordance with LTC&rsquo;s protocol.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                      </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Alternatively, miners could collude in an anti-competitive
manner to reject low transaction fees on the Litecoin Network and force users to pay higher fees, thus reducing the attractiveness of
the Litecoin Network. Higher transaction fees resulting from collusion or otherwise may adversely affect the attractiveness of the Litecoin
Network, the value of LTC and the value of the Shares.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To the extent that any miners cease to record
transactions that do not include the payment of a transaction fee in mined blocks or do not record a transaction because the transaction
fee is too low, such transactions will not be recorded on the Litecoin Blockchain until a block is mined by a miner who does not require
the payment of transaction fees or is willing to accept a lower fee. Any widespread delays in the recording of transactions could result
in a loss of confidence in the digital asset network.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                      </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Digital asset mining operations can consume significant
amounts of electricity, which may have a negative environmental impact and give rise to public opinion against allowing, or government
regulations restricting, the use of electricity for mining operations. Additionally, miners may be forced to cease operations during an
electricity shortage or power outage, or when the cost of electricity as compared to mining, validating, or transaction fees makes conducting
its operations uneconomical.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"><B><I>If the Litecoin Network
is used to facilitate illicit activities or evade sanctions, businesses that facilitate transactions in LTC could be at increased risk
of criminal or civil lawsuits, or of having services cut off, which could negatively affect the price of LTC and the value of the Shares.
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset networks have
in the past been, and may continue to be, used to facilitate illicit activities. If the Litecoin Network is used to facilitate illicit
activities or evade sanctions, businesses that facilitate transactions in LTC could be at increased risk of potential criminal or civil
lawsuits, or of having banking or other services cut off, and LTC could be removed from digital asset trading platforms as a result of
these concerns. Other service providers of such businesses may also cut off services if there is a concern that the Litecoin Network is
being used to facilitate crime. Any of the aforementioned occurrences could increase regulatory scrutiny of the Litecoin Network and/or
adversely affect the price of LTC, the attractiveness of the Litecoin Network and an investment in the Shares of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust and the Sponsor,
acting on behalf of the Trust, directly interact with parties that are themselves subject to AML program requirements under the Bank Secrecy
Act or similar laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 19; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Authorized Participants
are registered broker-dealers or financial institutions exempt from broker-dealer registration and therefore are subject to AML and countering
the financing of terrorism obligations under the Bank Secrecy Act as administered by FinCEN and further overseen by the SEC and FINRA.
In accordance with its regulatory obligations, the Authorized Participants conduct customer due diligence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">When the Trust and the Sponsor,
acting on behalf of the Trust, buy, sell or deliver, as applicable, LTC, they transact directly with financial institution counterparties
that are subject to U.S. federal and/or state licensing requirements or similar laws in non-U.S. jurisdictions and maintain practices
and policies designed to comply with AML and KYC regulations or similar laws in non-U.S. jurisdictions. The Trust will not hold any LTC
except those that have been delivered by the Trust&rsquo;s LTC trading counterparties in connection with creation requests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Sponsor, the Trust,
or an Authorized Participant were nevertheless to transact with such a sanctioned entity, the Sponsor, the Trust, and such Authorized
Participant would be at increased risk of potential criminal or civil lawsuits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>A
temporary or permanent &ldquo;fork&rdquo; or a &ldquo;clone&rdquo; could adversely affect the value of the Shares. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Litecoin Network operates using open-source protocols, meaning that any user can download the software, modify it and then propose that
the users and miners of LTC adopt the modification. When a modification is introduced and a substantial majority of users and miners&rsquo;
consent to the modification, the change is implemented and the network remains uninterrupted. However, if less than a substantial majority
of users and miners&rsquo; consent to the proposed modification, and the modification is not compatible with the software prior to its
modification, the consequence would be what is known as a &ldquo;hard fork&rdquo; of the Litecoin Network, with one group running the
pre-modified software and the other running the modified software. The effect of such a fork would be the existence of two versions of
LTC running in parallel, yet lacking interchangeability. Some users of the original network may harbor ill will toward the new network,
and vice versa. A fork may also occur as a result of an unintentional or unanticipated software flaw in the various versions of otherwise
compatible software that users run. Such a fork could lead to users and miners abandoning the digital asset with the flawed software.
It is possible, however, that a substantial number of users and miners could adopt an incompatible version of the digital asset while
resisting community-led efforts to merge the two chains. This could result in a permanent fork.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Forks
may also occur as a digital asset network&rsquo;s community&rsquo;s response to a significant security breach. For example, in July 2016,
Ethereum &ldquo;forked&rdquo; into Ethereum and a new digital asset, Ethereum Classic, as a result of the Ethereum network community&rsquo;s
response to a significant security breach. In June 2016, an anonymous hacker exploited a smart contract running on the Ethereum network
to syphon approximately $60 million of Ether held by The DAO, a distributed autonomous organization, into a segregated account. In response
to the exploit, most participants in the Ethereum community elected to adopt a &ldquo;fork&rdquo; that effectively reversed the exploit.
However, a minority of users continued to develop the original blockchain, referred to as &ldquo;Ethereum Classic&rdquo; with the digital
asset on that blockchain now referred to as ETC. ETC now trades on several digital asset trading platforms. A fork may also occur as a
result of an unintentional or unanticipated software flaw in the various versions of otherwise compatible software that users run. Such
a fork could lead to users and miners abandoning the digital asset with the flawed software. It is possible, however, that a substantial
number of users and miners could adopt an incompatible version of the digital asset while resisting community-led efforts to merge the
two chains. This could result in a permanent fork, as in the case of Ethereum and Ethereum Classic.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition, many developers have previously initiated hard forks in the bitcoin blockchain to launch new digital assets, such as Bitcoin
Cash, Bitcoin Gold, Bitcoin Silver and Bitcoin Diamond, as well as the Bitcoin Cash blockchain to launch a new digital asset, Bitcoin
Satoshi&rsquo;s Vision. To the extent such digital assets compete with Litecoin, such competition could impact demand for LTC and could
adversely impact the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Furthermore,
a hard fork can lead to new security concerns. For example, when the Ethereum and Ethereum Classic networks, two other digital asset networks,
split in July 2016, replay attacks, in which transactions from one network were rebroadcast to nefarious effect on the other network,
plagued Ethereum trading platforms through at least October 2016. An Ethereum trading platform announced in July 2016 that it had lost
40,000 Ethereum Classic, worth about $100,000 at that time, as a result of replay attacks. Similar replay attack concerns occurred in
connection with the Bitcoin Cash and Bitcoin Satoshi&rsquo;s Vision networks split in November 2018. Another possible result of a hard
fork is an inherent decrease in the level of security due to significant amounts of mining power remaining on one network or migrating
instead to the new forked network. After a hard fork, it may become easier for an individual miner or mining pool&rsquo;s hashing power
to exceed 50% of the processing power of a digital asset network that retained or attracted less mining power, thereby making digital
asset networks that rely on proof-of-work more susceptible to attack.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

<!-- Field: Page; Sequence: 20; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Digital
asset networks and related protocols may also be cloned. Unlike a fork of a digital asset network, which modifies an existing blockchain,
and results in two competing digital asset networks, each with the same genesis block, a &ldquo;clone&rdquo; is a copy of a protocol&rsquo;s
codebase, but results in an entirely new blockchain and new genesis block. Tokens are created solely from the new &ldquo;clone&rdquo;
network and, in contrast to forks, holders of tokens of the existing network that was cloned do not receive any tokens of the new network.
For example, Litecoin is the result of a clone of the bitcoin network. A &ldquo;clone&rdquo; results in a competing network that has characteristics
substantially similar to the network it was based on, subject to any changes as determined by the developer(s) that initiated the clone.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">A
hard fork may adversely affect the price of LTC at the time of announcement or adoption. For example, the announcement of a hard fork
could lead to increased demand for the pre-fork digital asset, in anticipation that ownership of the pre-fork digital asset would entitle
holders to a new digital asset following the fork. The increased demand for the pre-fork digital asset may cause the price of the digital
asset to rise. After the hard fork, it is possible the aggregate price of the two versions of the digital asset running in parallel would
be less than the price of the digital asset immediately prior to the fork. Furthermore, while the Trust would be entitled to both versions
of the digital asset running in parallel, the Sponsor will, as permitted by the terms of the Trust Agreement, determine which version
of the digital asset is generally accepted as the Litecoin Network and should therefore be considered the appropriate network for the
Trust&rsquo;s purposes, and there is no guarantee that the Sponsor will choose the digital asset that is ultimately the most valuable
fork. Either of these events could therefore adversely impact the value of the Shares. For example, on November 15, 2020, certain Bitcoin
Cash developers enacted a proposed update to the Bitcoin Cash Network requiring 8% of mined tokens to be redistributed to the developer
pool, causing a hard fork, and created a network with a token labeled BCHA. For the days following the fork, the price of BCH fluctuated
from $246.15 on November 15, 2020 to $256.55 on November 20, 2020. A clone may also adversely affect the price of LTC at the time of announcement
or adoption. For example, on November 6, 2016, Rhett Creighton, a Zcash developer, cloned the Zcash network to launch Zclassic, a substantially
identical version of the Zcash network that eliminated the Founders&rsquo; Reward. For the days following the date the first Zclassic
block was mined, the price of ZEC fell from $504.57 on November 5, 2016 to $236.01 on November 7, 2016 in the midst of a broader sell
off of ZEC beginning immediately after the Zcash network launch on October 28, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">A
future fork in or clone of the Litecoin Network could adversely affect the value of the Shares or the ability of the Trust to operate.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event of
a hard fork of the Litecoin Blockchain, the Sponsor will, pursuant to the terms of the Trust Agreement, use its discretion to determine
which network should be considered the appropriate network for the Trust&rsquo;s purposes, and in doing so may adversely affect the value
of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the highly unlikely event
of a hard fork of the Litecoin Blockchain, the Sponsor will use its discretion to determine, promptly and in good faith, which digital
asset network, among a group of incompatible forks of the Litecoin Blockchain, is generally accepted as the Litecoin Blockchain and should
therefore be considered the appropriate network for the Trust&rsquo;s purposes. The Sponsor will base its determination on a variety of
then-relevant factors, including, but not limited to, the Sponsor&rsquo;s beliefs regarding expectations of the core developers of LTC,
users, services, businesses, miners and other constituencies, as well as the actual continued acceptance of, and miner and community engagement
with, the Litecoin Blockchain, along with market capitalization and trading activity. There is no guarantee that the Sponsor will choose
the cryptocurrency that is ultimately the most valuable fork, and the Sponsor&rsquo;s decision may adversely affect the value of the Shares
as a result. The Sponsor may also disagree with Shareholders, the Custodian, security vendors and the Benchmark Administrator on what
is generally accepted as LTC and should therefore be considered &ldquo;LTC&rdquo; for the Trust&rsquo;s purposes, which may also adversely
affect the value of the Shares as a result.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event of
a hard fork of the Litecoin Blockchain, the Custodian&rsquo;s operations may be interrupted or subject to additional security risks that
could disrupt the Trust&rsquo;s ability to process creations and redemptions of Shares or otherwise threaten the security of the Trust&rsquo;s
LTC holdings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event of a hard fork
of the Litecoin Blockchain, the Custodian may temporarily halt the ability of customers (including the Trust) to deposit, withdraw or
transfer LTC on the Custodian&rsquo;s platform. Such a delay may be intended to permit the Custodian to assess the resulting versions
of the Litecoin Blockchain, to determine how best to securely &ldquo;split&rdquo; the LTC from the Forked Asset, and to prevent malicious
users from conducting &ldquo;replay attacks&rdquo; (<I>i.e.</I>, broadcasting transactions on both versions of the forked networks to
put Custodian assets at risk). As a result, the Trust is likely to suspend creations and redemptions during a period in which the Custodian&rsquo;s
operations are halted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, any losses experienced
by the Custodian due to a hard fork, including due to replay attacks or technological errors in assessing the fork, could have a materially
adverse impact on an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 21; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders may
not receive the benefits of any forks or &ldquo;airdrops.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to forks, a digital
asset, including LTC, may become subject to a similar occurrence known as an &ldquo;airdrop.&rdquo; In an airdrop, the promotors of a
new digital asset announce to holders of another digital asset that such holders will be entitled to claim a certain amount of the new
digital asset for free, based on the fact that they hold such other digital asset. Such airdrops are not uncommon on the Litecoin Blockchain.
Airdrops may be conducted by sending a token to the holders of set amounts of LTC or to particular public addresses on the Litecoin Blockchain.
Airdrops may involve a user being entitled to claim tokens on a decentralized application, second-layer network or entirely separate digital
asset network. A user entitled to receive airdrops may be required to take little or significant actions in order to receive such airdropped
tokens. Shareholders may not receive the benefits of any forks; the Trust may not choose, or be able, to participate in an airdrop; and
the timing of receiving any benefits from a fork, airdrop or similar event is uncertain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A right to receive any such
benefit of a fork or airdrop is referred to as an &ldquo;Incidental Right&rdquo; and any digital asset acquired through an Incidental
Right is known as an &ldquo;IR Asset.&rdquo; Pursuant to the Trust Agreement, the Trust has explicitly disclaimed all Incidental Rights
and IR Assets. Such assets are not considered assets of the Trust at any point in time and will not be taken into account for purposes
of determining the Trust&rsquo;s NAV and the NAV per Share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Trust Agreement,
to the extent that the Trust involuntarily receives such assets in a Trust wallet, it will, as soon as practicable and, if possible, immediately,
distribute such assets to the Sponsor. Once such assets have been acquired, the Sponsor may take any lawful action necessary or desirable
in connection with its acquisition thereof. In the event that the Sponsor decides to sell the Incidental Right(s) and/or IR Asset(s),
it will seek to do so for cash. This may be a sale of the Incidental Right(s) and/or IR Asset(s) directly in exchange for cash, or in
exchange for another digital asset that may subsequently be exchanged for cash. The Sponsor would then contribute that cash back to the
Trust, which in turn would distribute the cash to the Depository Trust Company (&ldquo;DTC&rdquo;) to be distributed to Shareholders in
proportion to the number of Shares owned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the Sponsor intends,
if possible, to arrange for the sale of any Incidental Right(s) and/or IR Asset(s) it receives from the Trust and subsequently contribute
such cash proceeds back to the Trust, it is under no obligation to do so. There are likely to be operational, tax, securities law, regulatory,
legal and practical issues that significantly limit, or prevent entirely, the Sponsor&rsquo;s ability to realize a benefit from any such
Incidental Right(s) and/or IR Asset(s). The Sponsor may choose to evaluate any such fork, airdrop or similar occurrence on a case-by-case
basis in consultation with its legal advisers, tax consultants and custodian. In determining whether to attempt to acquire and/or retain
any Incidental Right(s) and/or IR Asset(s), the Sponsor expects to take into consideration whatever factors it deems relevant in its discretion,
including, without limitation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the availability of a safe and practical way to take custody of the Incidental Right or IR Asset;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the cost or operational burden of taking possession and/or maintaining ownership of the Incidental Right
or IR Asset and whether such cost or burden exceeds the benefits of owning such Incidental Rights or IR Asset or the proceeds that would
be realized from a sale thereof;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                          </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">whether there are any legal or regulatory restrictions on or risks or consequences arising from, or tax
implications with respect to, the acceptance, retention, ownership, sale, transfer, abandonment, distribution or disposal or disposition
of the Incidental Right or IR Asset, regardless of whether there is a safe and practical way to take custody of and secure such Incidental
Right or IR Asset;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                            </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the existence of a suitable market into which the Incidental Right or IR Asset may be sold; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">whether claiming, owning, selling, or otherwise taking any action in respect of Incidental Right or IR
Asset may create legal or regulatory risks, liability, or burdens of any kind for the Sponsor (including, without limitation, if such
Incidental Right or IR Asset is, or may be, a security under federal securities laws or a commodity interest under the Commodity Exchange
Act).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is under no obligation
to realize any economic benefit from any Incidental Right(s) and/or IR Asset(s) it receives from the Trust. The Sponsor may instead determine,
in its sole discretion, to abandon such Incidental Rights or IR Assets permanently and irrevocably for no consideration. Before the Trust
claims any Incidental Right(s) and/or IR Asset(s) resulting from a fork or airdrop on the Litecoin Blockchain (other than LTC), the Trust
would need to seek and obtain certain regulatory approvals, including an amendment to the Trust&rsquo;s registration statement of which
this Prospectus is a part and approval of an application by the Exchange to amend its listing rules.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 22; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">If
a malicious actor or botnet obtains control of more than 50% of the processing power on the Litecoin Network, or otherwise obtains control
over the Litecoin Network through its influence over core developers or otherwise, such actor or botnet could manipulate the Blockchain
to adversely affect the value of the Shares or the ability of the Trust to operate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.75pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.75pt; background-color: white">If
a malicious actor or botnet (a volunteer or hacked collection of computers controlled by networked software coordinating the actions of
the computers) obtains a majority of the processing power on the Litecoin Network, it may be able to alter the Blockchain on which transactions
in LTC rely by constructing fraudulent blocks or preventing certain transactions from completing in a timely manner, or at all. The malicious
actor or botnet could also control, exclude or modify the ordering of transactions. Although the malicious actor or botnet may not be
able to generate new digital assets or transactions using such control, it may be able to &ldquo;double-spend&rdquo; its own digital assets
(i.e., spend the same tokens in more than one transaction) and prevent the confirmation of other users&rsquo; transactions for so long
as it maintained control. To the extent that such malicious actor or botnet did not yield its control of the processing power on the Litecoin
Network or the LTC community did not reject the fraudulent blocks as malicious, reversing any changes made to the Blockchain may not be
possible. Further, a malicious actor or botnet could create a flood of transactions in order to slow down the Litecoin Network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.75pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.75pt; background-color: white">For
example, in August 2020, the Ethereum Classic network was the target of two double-spend attacks by an unknown actor or actors that gained
more than 50% of the processing power of the Ethereum Classic network. The attack resulted in reorganizations of the Ethereum Classic
blockchain that allowed the attacker or attackers to reverse previously recorded transactions in excess of over $5.0 million and $1.0
million. Any similar attacks on the Litecoin Network could negatively impact the value of LTC and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.75pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.75pt; background-color: white">Although
there are no known reports of malicious activity on, or control of, the Litecoin Network, it is believed that certain mining pools may
have exceeded the 50% threshold on the Litecoin Network. The crossing of the 50% threshold indicates a greater risk that a single mining
pool or small group of mining pools, for example, could exert authority over the validation of LTC transactions, and this risk is heightened
if over 50% of the processing power on the network falls within the jurisdiction of a single governmental authority.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The digital asset
trading platforms on which LTC trades are relatively new and largely unregulated or may not be complying with existing regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset markets, including
spot markets for LTC, are growing rapidly. The digital asset trading platforms through which LTC and other digital assets trade are new
and largely unregulated or may not be complying with existing regulations. These markets are local, national and international and include
a broadening range of digital assets and participants. Significant trading may occur on systems and platforms with minimum predictability.
Spot markets may impose daily, weekly, monthly or customer-specific transaction or withdrawal limits or suspend withdrawals entirely,
rendering the exchange of LTC for fiat currency difficult or impossible. Participation in spot markets requires users to take on credit
risk by transferring LTC from a personal account to a third party&rsquo;s account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset trading platforms
do not appear to be subject to, or may not comply with, regulation in a manner similar to other regulated trading platforms, such as national
securities exchanges or designated contract markets. Many digital asset trading platforms are unlicensed, are unregulated, operate without
extensive supervision by governmental authorities, and do not provide the public with significant information regarding their ownership
structure, management team, corporate practices, cybersecurity, and regulatory compliance. In particular, those located outside the United
States may be subject to significantly less stringent regulatory and compliance requirements in their local jurisdictions. Digital asset
trading platforms may be out of compliance with existing regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a result, trading activity
on or reported by these digital asset trading platforms is generally significantly less regulated than trading in regulated U.S. securities
and commodities markets and may reflect behavior that would be prohibited in regulated U.S. trading venues. Furthermore, many digital
asset trading platforms lack certain safeguards put in place by more traditional exchanges to enhance the stability of trading on the
platform and prevent flash crashes, such as limit-down circuit breakers. As a result, the prices of digital assets such as LTC on digital
asset trading platforms may be subject to larger and/or more frequent sudden declines than assets traded on more traditional exchanges.
Tools to detect and deter fraudulent or manipulative trading activities (such as market manipulation, front-running of trades, and wash-trading)
may not be available to or employed by digital asset trading platforms or may not exist at all. Consequently, the marketplace may lose
confidence in, or may experience problems relating to, these venues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 23; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">No digital asset trading platform
on which LTC trades is immune from these risks. The closure or temporary shutdown of the digital asset trading platforms due to fraud,
business failure, hackers or malware, or government-mandated regulation may reduce confidence in the Litecoin Network and can slow down
the mass adoption of LTC. Further, digital asset trading platform failures or the failure of any other major component of the overall
LTC ecosystem can have an adverse effect on LTC markets and the price of LTC, and could therefore have a negative impact on the performance
of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Negative perception, a lack
of stability in the digital asset trading platforms, manipulation of LTC trading platforms by customers and/or the closure or temporary
shutdown of such trading platforms due to fraud, business failure, hackers or malware, or government-mandated regulation may reduce confidence
in LTC generally and result in greater volatility in the market price of LTC and the Shares of the Trust. Furthermore, the closure or
temporary shutdown of an LTC trading platform may impact the Trust&rsquo;s ability to determine the value of its LTC holdings or for the
Trust&rsquo;s Authorized Participants to effectively arbitrage the Trust&rsquo;s Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset
trading platforms may be exposed to security breaches.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The nature of the assets held
at LTC trading platforms makes them appealing targets for hackers and a number of LTC trading platforms have been victims of cybercrimes.
Over the past several years, some digital asset trading platforms have been closed due to security breaches. In many of these instances,
the customers of such digital asset trading platforms were not compensated or made whole for the partial or complete losses of their account
balances in such digital asset trading platforms. While, generally speaking, smaller digital asset trading platforms are less likely to
have the infrastructure and capitalization that make larger digital asset trading platforms more stable, larger digital asset trading
platforms are more likely to be appealing targets for hackers and malware. For example, the collapse of Mt. Gox, which filed for bankruptcy
protection in Japan in late February 2014, demonstrated that even the largest digital asset trading platforms could be subject to abrupt
failure with consequences both for users of digital asset trading platforms and for the digital asset industry as a whole. In particular,
in the two weeks that followed the February 7, 2014, halt of bitcoin withdrawals from Mt. Gox, the value of one bitcoin fell on other
exchanges from around $795 on February 6, 2014, to $578 on February 20, 2014. Additionally, in January 2015, Bitstamp announced that approximately
19,000 bitcoin had been stolen from its operational or &ldquo;hot&rdquo; wallets. Further, in August 2016, it was reported that almost
120,000 bitcoin worth around $78 million were stolen from Bitfinex, a large digital asset exchange. The value of bitcoin and other digital
assets immediately decreased by more than 10% following reports of the theft at Bitfinex. In July 2017, FinCEN assessed a $110 million
fine against BTC-e, a now-defunct digital asset exchange, for facilitating crimes such as drug sales and ransomware attacks. In December
2017, Yapian, the operator of Seoul-based cryptocurrency exchange Youbit, suspended digital asset trading and filed for bankruptcy following
a hack that resulted in a loss of 17% of Yapian&rsquo;s assets. Following the hack, Youbit users were allowed to withdraw approximately
75% of the digital assets in their exchange accounts, with any potential further distributions to be made following Yapian&rsquo;s pending
bankruptcy proceedings. In January 2018, the Japanese digital asset trading platform, Coincheck was hacked, resulting in losses of approximately
$535 million, and in February 2018, the Italian digital asset trading platform Bitgrail was hacked, resulting in approximately $170 million
in losses. In May 2019, one of the world&rsquo;s largest digital asset trading platforms, Binance, was hacked, resulting in losses of
approximately $40 million.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset
trading platforms may be exposed to fraud and market manipulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The blockchain infrastructure
could be used by certain market participants to exploit arbitrage opportunities through schemes such as front-running, spoofing, pump-and-dump
and fraud across different systems, platforms or geographic locations. As a result of reduced oversight, these schemes may be more prevalent
in digital asset markets than in the general market for financial products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The SEC has identified possible
sources of fraud and manipulation in the LTC market generally, including, among others, (1) &ldquo;wash trading&rdquo;; (2) persons with
a dominant position in LTC manipulating LTC pricing; (3) hacking of the Litecoin Blockchain and trading platforms; (4) malicious control
of the Litecoin Blockchain; (5) trading based on material, nonpublic information (for example, plans of market participants to significantly
increase or decrease their holdings in LTC, new sources of demand for LTC, etc.) or based on the dissemination of false and misleading
information; (6) manipulative activity involving purported &ldquo;stablecoins,&rdquo; including Tether; and (7) fraud and manipulation
at LTC trading platforms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Over the past several years,
a number of digital asset trading platforms have been closed or faced issues due to fraud. In many of these instances, the customers of
such digital asset trading platforms were not compensated or made whole for the partial or complete losses of their account balances in
such digital asset trading platforms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 24; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In 2019, there were reports
claiming that 80.95% of bitcoin trading volume on digital asset trading platforms was false or noneconomic in nature, with specific focus
on unregulated exchanges located outside of the United States. Such reports alleged that certain overseas exchanges have displayed suspicious
trading activity suggestive of a variety of manipulative or fraudulent practices. Other academics and market observers have put forth
evidence to support claims that manipulative trading activity has occurred on certain digital asset exchanges. For example, in a 2017
paper titled &ldquo;Price Manipulation in the Bitcoin Ecosystem&rdquo; sponsored by the Interdisciplinary Cyber Research Center at Tel
Aviv University, a group of researchers used publicly available trading data, as well as leaked transaction data from a 2014 Mt. Gox security
breach, to identify and analyze the impact of &ldquo;suspicious trading activity&rdquo; on Mt. Gox between February and November 2013,
which, according to the authors, caused the price of bitcoin to increase from around $150 to more than $1,000 over a two-month period.
In August 2017, it was reported that a trader or group of traders nicknamed &ldquo;Spoofy&rdquo; was placing large orders on Bitfinex
without actually executing them, presumably in order to influence other investors into buying or selling by creating a false appearance
that greater demand existed in the market. In December 2017, an anonymous blogger (publishing under the pseudonym Bitfinex&rsquo;d) cited
publicly available trading data to support his or her claim that a trading bot nicknamed &ldquo;Picasso&rdquo; was pursuing a paint-the-tape-style
manipulation strategy by buying and selling bitcoin and Bitcoin Cash between affiliated accounts in order to create the appearance of
substantial trading activity and thereby influence the price of such assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In November 2022, FTX, one
of the largest digital asset trading platforms by volume at the time, halted customer withdrawals amid rumors of the company&rsquo;s liquidity
issues and likely insolvency, which were subsequently corroborated by its CEO. Shortly thereafter, FTX&rsquo;s CEO resigned and FTX and
many of its affiliates filed for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation, or similar
proceedings around the globe, following which the U.S. Department of Justice brought criminal fraud and other charges, and the SEC and
CFTC brought civil securities and commodities fraud charges, against certain of FTX&rsquo;s and its affiliates&rsquo; senior executives,
including its former CEO. Around the same time, there were reports that approximately $300 million to $600 million of digital assets were
removed from FTX. The full facts remain unknown, including whether such removal was the result of a hack, theft, insider activity, or
other improper behavior.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The potential consequences
of a digital asset trading platform&rsquo;s failure or failure to prevent market manipulation could adversely affect the value of the
Shares. Any market abuse, and a loss of investor confidence in LTC, may adversely impact pricing trends in LTC markets broadly, as well
as an investment in Shares of the Trust.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset
trading platforms may be exposed to wash trading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Digital
asset trading platforms may be susceptible to wash trading. Wash trading occurs when offsetting trades are entered into for other than
bona fide reasons, such as the desire to inflate reported trading volumes. Wash trading may be motivated by non-economic reasons, such
as a desire for increased visibility on popular websites that monitor markets for digital assets so as to improve a trading platform&rsquo;s
attractiveness to investors who look for maximum liquidity, or it may be motivated by the ability to attract listing fees from token issuers
who seek the most liquid and high-volume trading platforms on which to list their tokens. Results of wash trading may include unexpected
obstacles to trade and erroneous investment decisions based on false information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Even
in the United States, there have been allegations of wash trading even on regulated trading venues. Any actual or perceived false trading
on digital asset trading platforms, and any other fraudulent or manipulative acts and practices, could adversely affect the value of LTC
and/or negatively affect the market perception of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">To
the extent that wash trading either occurs or appears to occur in digital asset trading platforms on which LTC trades, investors may develop
negative perceptions about LTC and the digital assets industry more broadly, which could adversely impact the price of LTC and, therefore,
the price of the Shares. Wash trading also may place more legitimate digital asset trading platforms at a relative competitive disadvantage.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 25; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital asset
trading platforms may be exposed to front-running.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">Digital
asset trading platforms may be susceptible to &ldquo;front-running,&rdquo; which refers to the process when someone uses technology or
market advantage to get prior knowledge of upcoming transactions. Front-running is a frequent activity on centralized as well as decentralized
trading platforms. By using bots functioning on a millisecond-scale timeframe, bad actors are able to take advantage of the forthcoming
price movement and make economic gains at the cost of those who had introduced these transactions. The objective of a front runner is
to buy tokens at a low price and later sell them at a higher price while simultaneously exiting the position. To the extent that front-running
occurs, it may result in investor frustrations and concerns as to the price integrity of digital asset trading platforms and digital assets
more generally.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Momentum pricing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The market price of LTC is
not based on any kind of claim, nor is it backed by any physical asset. Instead, the market value depends on the expectation of being
usable in future transactions and continued interest from investors. This strong correlation between an expectation and market value is
the basis for the current (and probable future) volatility of the market price of LTC and may increase the likelihood of momentum pricing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Momentum pricing typically
is associated with growth stocks and other assets whose valuation, as determined by the investing public, is impacted by appreciation
in value. Momentum pricing may result in speculation regarding future appreciation in the value of digital assets, which inflates prices
and leads to increased volatility. As a result, LTC may be more likely to fluctuate in value due to changing investor confidence in future
appreciation or depreciation in prices, which could adversely affect the price of LTC and, in turn, an investment in the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The price of LTC as represented
by the Index may also be subject to momentum pricing due to speculation regarding future appreciation in value, leading to greater volatility
that could adversely affect the value of the Shares. Momentum pricing of LTC has previously resulted, and may continue to result, in speculation
regarding future appreciation or depreciation in the price of LTC, further contributing to volatility and potentially inflating prices
at any given time. These dynamics may impact the value of an investment in Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Some market observers have
asserted that in time, the price of LTC will fall to a fraction of its current value, or even to zero. LTC has not been in existence long
enough for market participants to assess these predictions with any precision, but if these observers are even partially correct, an investment
in the Shares may turn out to be substantially worthless.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Political or economic
crises may motivate large-scale sales of LTC, which could result in a reduction in the price of LTC and adversely affect an investment
in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As an alternative to fiat
currencies that are backed by central governments, LTC is subject to supply and demand forces based upon the desirability of an alternative,
decentralized means of buying and selling goods and services, and it is unclear how such supply and demand will be impacted by geopolitical
events. Nevertheless, political or economic crises may motivate large-scale acquisitions or sales of LTC, either globally or locally.
Large-scale sales of LTC would result in a reduction in its price and adversely affect an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Ownership of LTC
is pseudonymous, and the supply of accessible LTC is unknown. Entities with substantial holdings in LTC may engage in large-scale sales
or distributions, either on nonmarket terms or in the ordinary course, which could result in a reduction in the price of LTC and adversely
affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is no registry showing
which individuals or entities own LTC or the quantity of LTC that is owned by any particular person or entity. It is possible, and in
fact, reasonably likely, that a small group of early LTC adopters hold a significant proportion of the LTC that has been created to date.
There are no regulations in place that would prevent a large holder of LTC from selling LTC it holds. To the extent such large holders
of LTC engage in large-scale sales or distributions, either on nonmarket terms or in the ordinary course, it could result in a reduction
in the price of LTC and adversely affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I></I></B></P>

<!-- Field: Page; Sequence: 26; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Irrevocable nature of
blockchain-recorded transactions.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC transactions recorded
on the Litecoin Blockchain are not, from an administrative perspective, reversible without the consent and active participation of the
recipient of the transaction or, in theory, control or consent of a majority of the Litecoin Blockchain&rsquo;s aggregate hash rate. Once
a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer of LTC or a theft of LTC
generally will not be reversible, and the Trust may not be capable of seeking compensation for any such transfer or theft. It is possible
that, through computer or human error, or through theft or criminal action, the Trust&rsquo;s LTC could be transferred from custody accounts
in incorrect quantities or to unauthorized third parties. To the extent that the Trust is unable to seek a corrective transaction with
such third party or is incapable of identifying the third party that has received the Trust&rsquo;s LTC through error or theft, the Trust
will be unable to revert or otherwise recover incorrectly transferred LTC. To the extent that the Trust is unable to seek redress for
such error or theft, such loss could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>A disruption of the
internet may affect Litecoin Blockchain operations, which may adversely affect the LTC industry and an investment in the Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Litecoin Blockchain relies
on the internet. A significant disruption of internet connectivity could disrupt the Litecoin Blockchain&rsquo;s functionality until such
disruption is resolved. A disruption in the internet could adversely affect an investment in the Trust or the ability of the Trust to
operate. In particular, some variants of digital assets have experienced a number of denial-of-service attacks, which have led to temporary
delays in block creation and digital asset transfers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Digital assets are also susceptible
to border gateway protocol hijacking (&ldquo;BGP hijacking&rdquo;). Such an attack can be a very effective way for an attacker to intercept
traffic en route to a legitimate destination. BGP hijacking impacts the way different nodes and miners are connected to one another to
isolate portions of them from the remainder of the network, which could lead to a risk of the network allowing double-spending and other
security issues. If BGP hijacking occurs on the Litecoin Blockchain, participants may lose faith in the security of LTC, which could affect
LTC&rsquo;s value and consequently the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any internet failures or internet
connectivity-related attacks that impact the ability to transfer LTC could have a material adverse effect on the price of LTC and the
value of an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>Changes
in the governance of a digital asset network or protocol may not receive sufficient support from users and miners, which may negatively
affect that digital asset network&rsquo;s or protocol&rsquo;s ability to grow and respond to challenges. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
governance of some digital asset networks and protocols, such as the Litecoin Network, is generally by voluntary consensus and open competition.
For such networks and protocols, there may be a lack of consensus or clarity on that network&rsquo;s or protocol&rsquo;s governance, which
may stymie such network&rsquo;s or protocol&rsquo;s utility, adaptability and ability to grow and face challenges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
foregoing notwithstanding, the underlying software for some digital asset networks and protocols, such as the Litecoin Network, is informally
or formally managed or developed by a group of core developers that propose amendments to the relevant network&rsquo;s or protocol&rsquo;s
source code. Core developers&rsquo; roles may evolve over time, generally based on self-determined participation. If a significant majority
of users and miners were to adopt amendments to the Litecoin Network based on the proposals of such core developers, the Litecoin Network
would be subject to new source code that may adversely affect the value of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
a result of the foregoing, it may be difficult to find solutions or marshal sufficient effort to overcome any future problems, especially
long-term problems, on digital asset networks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Decentralized governance
of the Litecoin Blockchain could have a negative impact on the performance of the Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Governance of decentralized
networks, such as the Litecoin Blockchain, is achieved through voluntary consensus and open competition. In other words, the Litecoin
Blockchain has no central decision-making body or clear manner in which participants can come to an agreement other than through overwhelming
consensus. The lack of clarity on governance may adversely affect LTC&rsquo;s utility and ability to grow and face challenges, both of
which may require solutions and directed effort to overcome problems, especially long-term problems. To the extent lack of clarity in
corporate governance of the Litecoin Blockchain leads to ineffective decision-making that slows development and growth, the value of the
Shares may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I></I></B></P>

<!-- Field: Page; Sequence: 27; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Double-spending risks.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Litecoin Blockchain is
designed to be resistant to double-spending risks through its consensus algorithm. The consensus protocol ensures that once a transaction
is confirmed by a supermajority of trusted miners, it is immutable and cannot be reversed. This immediate finality is a key defense against
double-spending. Additionally, transactions on the Litecoin Blockchain are atomic, meaning they are either fully executed or not executed
at all. This prevents any partial completion that could lead to inconsistencies or double-spending. Nonetheless, if the consensus mechanism
fails (e.g., due to a significant portion of miners being compromised), conflicting transactions could potentially be validated by different
parts of the network. Additionally, <FONT STYLE="background-color: white">if a malicious actor or botnet (a volunteer or hacked collection
of computers controlled by networked software coordinating the actions of the computers) obtains a majority of the processing power on
the Litecoin Network, it may be able to alter the Litecoin Blockchain on which transactions in LTC rely by constructing fraudulent blocks
or preventing certain transactions from completing in a timely manner, or at all. The malicious actor or botnet could also control, exclude
or modify the ordering of transactions. Although the malicious actor or botnet may not be able to generate new digital assets or transactions
using such control, it may be able to &ldquo;double-spend&rdquo; its own digital assets (i.e., spend the same tokens in more than one
transaction) and prevent the confirmation of other users&rsquo; transactions for so long as it maintained control. To the extent that
such malicious actor or botnet did not yield its control of the processing power on the Litecoin Network or the LTC community did not
reject the fraudulent blocks as malicious, reversing any changes made to the Litecoin Blockchain may not be possible. Further, a malicious
actor or botnet could create a flood of transactions in order to slow down the Litecoin Network.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Flaws in source code.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the past, <FONT STYLE="background-color: white">flaws
in the source code for digital asset networks and related protocols have been exposed and exploited, including flaws that disabled some
functionality for users, exposed users&rsquo; personal information and/or resulted in the theft of users&rsquo; digital assets. The cryptography
underlying LTC could prove to be flawed or ineffective, or developments in mathematics and/or technology, including advances in digital
computing, algebraic geometry and quantum computing, could result in such cryptography becoming ineffective. In any of these circumstances,
a malicious actor may be able to take the Trust&rsquo;s LTC, which would adversely affect the value of the Shares. Moreover, functionality
of the Litecoin Network may be negatively affected by such an exploit such that it is no longer attractive to users, thereby dampening
demand for LTC. Even if another digital asset other than LTC were affected by similar circumstances, any reduction in confidence in the
source code or cryptography underlying digital asset networks and related protocols generally could negatively affect the demand for digital
assets and therefore adversely affect the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Competition from the
emergence or growth of other digital assets or methods of investing in LTC could have a negative impact on the price of LTC and adversely
affect the value of the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
of ________, 202_, LTC was the ________ largest digital asset by market capitalization as tracked by CoinMarketCap.com. As of ________,
202_, the digital assets tracked by CoinMarketCap.com, had a total market capitalization of approximately $____ billion (including the
approximately $____ billion market cap of LTC), as calculated using market prices and total available supply of each digital asset, excluding
tokens pegged to other assets. In addition, many consortiums and financial institutions are also researching and investing resources into
private or permissioned blockchain platforms rather than open platforms like the Litecoin Network. Competition from the emergence or growth
of alternative digital assets and smart contracts platforms, such as Ethereum, Solana, Avalanche or Cardano, could have a negative impact
on the demand for, and price of, LTC and thereby adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition, some digital asset networks may be the target of ill will from users of other digital asset networks. For example, Litecoin
is the result of a clone of bitcoin and some users of the bitcoin network may harbor ill will toward the Litecoin Network, and vice versa.
These users may attempt to negatively impact the use or adoption of the Litecoin Network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">Investors
may invest in LTC through means other than the Shares, including through direct investments in LTC and other potential financial vehicles,
possibly including securities backed by or linked to LTC and digital asset financial vehicles similar to the Trust. Market and financial
conditions, and other conditions beyond the Sponsor&rsquo;s control, may make it more attractive to invest in other financial vehicles
or to invest in LTC directly, which could limit the market for, and reduce the liquidity of, the Shares. In addition, to the extent digital
asset financial vehicles other than the Trust tracking the price of LTC are formed and represent a significant proportion of the demand
for LTC, large purchases or redemptions of the securities of these digital asset financial vehicles, or private funds holding LTC, could
negatively affect the Index Price, the NAV, the value of the Shares, the Principal Market NAV and the Principal Market NAV per Share.
Moreover, any reduced demand for Shares of the Trust may cause the Shares of the Trust to trade at a discount to the NAV per Share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I></I></B></P>

<!-- Field: Page; Sequence: 28; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Congestion or delay
in the Litecoin Network may delay purchases or sales of LTC by the Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Increased transaction volume
could result in delays in the recording of transactions due to congestion in the Litecoin Network. Moreover, unforeseen system failures,
disruptions in operations, or poor connectivity may also result in delays in the recording of transactions on the Litecoin Network. Any
delay in the Litecoin Network could affect an Authorized Participant&rsquo;s ability to buy or sell LTC at an advantageous price resulting
in decreased confidence in LTC. Over the longer term, delays in confirming transactions could reduce the attractiveness to merchants and
other commercial parties as a means of payment. As a result, LTC and the value of the Trust would be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>________ serves as the
Custodian and Broker for several competing exchange-traded LTC products, which could adversely affect the Trust&rsquo;s operations and
ultimately the value of the Shares. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Broker and the ________
Custodian are both affiliates of ________. As of the date hereof, ________is the largest publicly traded crypto asset company in the world
by market capitalization and is also the largest crypto asset custodian in the world by assets under custody. By virtue of its leading
market position and capabilities, and the relatively limited number of institutionally capable providers of crypto asset brokerage and
custody services, ________serves as the Custodian and broker for several competing exchange-traded LTC products. Therefore, ________has
a critical role in supporting the U.S. spot LTC exchange-traded product ecosystem, and its size and market share create the risk that
________may fail to properly resource its operations to adequately support all such products that use its services that could harm the
Trust, the Shareholders and the value of the Shares. If ________were to favor the interests of certain products over others, it could
result in inadequate attention or comparatively unfavorable commercial terms to less favored products, which could adversely affect the
Trust&rsquo;s operations and ultimately the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Anonymity and illicit
financing risk.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although transaction details
of peer-to-peer transactions are recorded on the Litecoin Blockchain, a buyer or seller of digital assets on a peer-to-peer basis directly
on the Litecoin Blockchain may never know to whom the public key belongs or the true identity of the party with whom it is transacting.
Public key addresses are randomized sequences of alphanumeric characters that, standing alone, do not provide sufficient information to
identify users. In addition, certain technologies may obscure the origin or chain of custody of digital assets. The opaque nature of the
market poses asset verification challenges for market participants, regulators and auditors and gives rise to an increased risk of manipulation
and fraud, including the potential for Ponzi schemes, bucket shops and pump-and-dump schemes. Digital assets have in the past been used
to facilitate illicit activities. If a digital asset were used to facilitate illicit activities, businesses that facilitate transactions
in such digital assets could be at increased risk of potential criminal or civil liability or lawsuits, or of having banking or other
services cut off, and such digital asset could be removed from digital asset platforms. Any of the aforementioned occurrences could adversely
affect the price of the relevant digital asset, the attractiveness of the respective blockchain network and an investment in the Shares.
If the Trust or the Sponsor were to transact with a sanctioned entity, the Trust or the Sponsor would be at risk of potential criminal
or civil lawsuits or liability. Transacting with a sanctioned entity could also have a material adverse effect on the Trust or the Sponsor&rsquo;s
financial condition and operational results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust takes measures with
the objective of reducing illicit financing risks in connection with the Trust&rsquo;s activities. However, illicit financing risks are
present in the digital asset markets, including markets for LTC. There can be no assurance that the measures employed by the Trust will
prove successful in reducing illicit financing risks, and the Trust is subject to the complex illicit financing risks and vulnerabilities
present in the digital asset markets. If such risks eventuate, the Trust or the Sponsor or their affiliates could face civil or criminal
liability, fines, penalties, or other punishments, be subject to investigation, have their assets frozen, lose access to banking services
or services provided by other service providers, or suffer disruptions to their operations, any of which could negatively affect the Trust&rsquo;s
ability to operate or cause losses in value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While the Sponsor and the
Trust are not &ldquo;financial institutions&rdquo; within the meaning of the implementing regulations of the Bank Secrecy Act and therefore
not required to implement an AML program, the Sponsor and the Trust will only interact with known third-party service providers with respect
to whom the Sponsor or its affiliates have engaged in a thorough due diligence process and/or a thorough know-your-customer (&ldquo;KYC&rdquo;)
process, such as the Authorized Participants, LTC Trading Counterparties, Prime Broker and Custodians. The Prime Broker and Custodians
must undergo counterparty due diligence by the Sponsor. Each Authorized Participant must undergo onboarding by the Sponsor prior to placing
creation or redemption orders with respect to the Trust. Each LTC Trading Counterparty who deposits LTC as part of a purchase made by
the Trust in connection with a cash creation or receives LTC from the Trust as part of a sale made by the Trust in connection with a cash
redemption must establish an account and transfer or receive such LTC through such account at the Prime Broker. As a result, the Sponsor
and the Trust have instituted procedures reasonably designed to ensure that a situation would not arise where the Trust would engage in
transactions with a counterparty whose identity the Sponsor and the Trust did not know.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Custodian has adopted
and implemented an anti-money laundering and sanctions compliance program, which provides additional protections to ensure that the Sponsor
and the Trust do not transact with a sanctioned party. Notably, each Custodian performs screening using blockchain analytics to identify,
detect, and mitigate the risk of transacting with a sanctioned or other unlawful actor. Pursuant to these blockchain analytics screening
programs, any LTC that is delivered to the Trust&rsquo;s custody account will undergo screening to assess whether the origins of that
LTC are illicit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 29; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, Authorized Participants,
as broker-dealers, the Prime Broker and ________Custodian, each as an entity licensed to conduct virtual currency business activity by
the New York Department of Financial Services and a limited purpose trust company subject to New York Banking Law, respectively, ________,
as a South Dakota trust company organized and chartered under the South Dakota Banking Law, and ________, as a private limited company
incorporated in Jersey, Channel Islands and regulated by the Jersey Financial Services Commission in the conduct of a fund services business
pursuant to the Financial Services (Jersey) Law 1998, are &ldquo;financial institutions&rdquo; subject to the Bank Secrecy Act, and U.S.
economic sanctions laws. The Trust will only accept creation and redemption requests from Authorized Participants and trade with LTC Trading
Counterparties who have represented to the Trust that they have implemented compliance programs that are designed to ensure compliance
with applicable sanctions and AML laws. In addition, with respect to all LTC delivered by LTC Trading Counterparties, the LTC Trading
Counterparties must represent to the Trust that they will form a reasonable belief (i) as to the identities of, and conduct necessary
diligence with respect to, any counterparties from whom such party obtains LTC being transferred and (ii) that such LTC being transferred
by such party to the Trust was not derived from, or associated with, unlawful or criminal activity. The Trust will not hold any LTC except
that which has been delivered by LTC Trading Counterparties or by execution through the Prime Broker, in connection with Authorized Participant
creation requests. Moreover, the Prime Broker has represented to the Trust that it has implemented and will maintain and follow compliance
programs that are designed to comply with applicable sanctions and AML laws and that it performs both initial and ongoing due diligence
on each of its customers as well as ongoing transaction monitoring that is designed to identify and report suspicious activity conducted
through customer accounts, including those opened by the Authorized Participants or their agents/partners for purposes of facilitating
LTC deposits to, and withdrawals from, the Trust&rsquo;s Trading Account, as required by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Broker Agreement
provides, among others, that if the Prime Broker conducts blockchain analytics screening on an LTC transaction deposited by an Authorized
Participant and such screening results in the LTC transaction being suspected or determined to be in violation of certain applicable sanctions
laws, the Prime Broker and its affiliates, including the ________Custodian, will (a) block or reject the deposit of such LTC into the
Trust&rsquo;s Trading Account, where required by applicable sanctions laws, and (b) agree to promptly inform the Trust if any fund movement
between an Authorized Participant&rsquo;s account at the Prime Broker and the Trust&rsquo;s account(s) involves such LTC, so long as permitted
by applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">However, there is no guarantee
that such procedures will always prove to be effective or that the Prime Broker and its affiliates will always perform their obligations.
Such screening may also result in the LTC identified by such screening being blocked or frozen by the Prime Broker, and thus made unavailable
to the Trust. Moreover, the Prime Broker Agreement and ________Custody Agreement require the Trust to attest that it has performed its
own due diligence on the Authorized Participants it has contracted with to source LTC from and has confirmed that the Authorized Participants
and LTC Trading Counterparties, as applicable, have implemented policies, procedures and controls designed to comply with applicable AML
and applicable sanctions laws. Although the Trust arranges for such diligence to be performed, including by the Trust&rsquo;s service
providers, including the Sponsor and its affiliates, there is no guarantee such diligence will prove effective in identifying all possible
sources of illicit financing risks. LTC Trading Counterparties represent to the Trust that they conduct due diligence on their own counterparties
from whom they source the LTC they deposit with the Trust in creation Baskets, and that they have formed a reasonable belief that such
LTC being transferred by the LTC Trading Counterparty to the Trust was not derived from, or associated with, unlawful or criminal activity.
However, there is the risk that LTC Trading Counterparties may not conduct sufficient due diligence processes on the sources of their
LTC or that their representations to the Trust may turn out to be inaccurate, which could cause the Trust to suffer a loss. If the Authorized
Participants or LTC Trading Counterparties have inadequate policies, procedures and controls for complying with applicable AML and applicable
sanctions laws or the Trust&rsquo;s procedures or diligence proves to be ineffective, violations of such laws could result, which could
result in regulatory liability for the Trust or the Sponsor, or their affiliates, under such laws, including governmental fines, penalties,
and other punishments, as well as potential liability to or cessation of services by the Prime Broker and its affiliates, including the
________Custodian, under the Prime Broker Agreement and ________Custody Agreement, the Custodians or the Trust&rsquo;s other service providers
and counterparties. Any of the foregoing could result in losses to the Shareholders or negatively affect the Trust&rsquo;s ability to
operate, and could further negatively affect the price of LTC and the value of the Shares.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Risks Associated with LTC Trading Markets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Trust is subject
to risks due to its concentration in a single asset: LTC. Any losses suffered as a result of a decrease in the value of LTC or disruption
of the LTC trading markets, generally, can be expected to reduce the value of the Shares and will not be offset by other gains if the
Trust were to invest in other assets.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Unlike certain funds that
may invest in diversified assets, the Trust&rsquo;s investment strategy is concentrated in a single asset: LTC. This concentration maximizes
the degree of the Trust&rsquo;s exposure to a variety of market risks associated with LTC and the LTC trading market. By concentrating
its investment strategy solely in LTC, any losses suffered as a result of a decrease in the value of individual LTC or disruption of the
LTC trading markets, generally, can be expected to reduce the value of the Shares and will not be offset by other gains if the Trust were
to invest in underlying assets that were diversified.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 30; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The value of the Shares
relates directly to the value of the LTC held by the Trust and fluctuations in the price of LTC could materially and adversely affect
an investment in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The investment objective of
the Trust is to provide exposure to the value of the Trust&rsquo;s LTC holdings, less the Trust&rsquo;s liabilities (including estimated
accrued expenses). The price of LTC has fluctuated widely and may continue to experience significant price fluctuations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Several factors may affect
the price of LTC, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Global LTC supply, which is estimated at ________ as of ________, 202_;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Global LTC demand, which is influenced by such factors as purchases made by speculative investors, acceptance of LTC by online merchants as a payment mechanism, purchases of LTC made by individuals for transactional purposes, and expectations regarding the future value of LTC and the ability to easily buy, sell and use LTC without regulatory interference;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Global or regional political, economic or financial events and situations;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investors&rsquo; expectations with respect to interest rates, the rates of inflation of fiat currencies or LTC, and digital asset and currency exchange rates;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The liquidity, solvency, security and withdrawal policies of digital asset trading platforms;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Manipulative trading activity on digital asset trading platforms, which, in many cases, are unregulated;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investment and trading activities of hedge funds and other large LTC investors;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A &ldquo;short squeeze&rdquo; resulting from speculation on the price of LTC, if aggregate short exposure exceeds the number of Shares available for purchase;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An active derivatives market for LTC or for digital assets generally;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Forks in the Litecoin Blockchain;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Monetary policies of governments, trade restrictions, currency devaluations and revaluations, and any restrictions on the use of LTC as a form of payment or the ability to purchase and sell LTC in trading markets;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Regulatory measures, if any, that restrict the ability to buy, sell or hold LTC or use LTC as a form of payment;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Increased competition from other forms of digital assets or payment services;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transaction costs relating to the acquisition and transfer of LTC; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Global or regional political, economic or financial events and situations.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If LTC markets continue to
be subject to sharp fluctuations, you may experience losses if you need to sell your Shares at a time when the price of LTC is lower than
it was when you made your prior investment. Even if you are able to hold Shares for the long term, your Shares may never generate a profit,
since LTC markets have historically experienced extended periods of flat or declining prices, in addition to sharp fluctuations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, investors should
be aware that there is no assurance that LTC will maintain its long-term value in terms of future purchasing power. In the event that
the price of LTC declines, the Sponsor expects the value of an investment in the Shares to decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The platforms on which
users trade LTC are relatively new and, in some cases, largely unregulated, and, therefore, may be more exposed to fraud and security
breaches than established, regulated exchanges for other financial assets or instruments, which could have a negative impact on the performance
of the Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Over the past several years,
a number of LTC trading platforms have been closed or faced issues due to fraud, failure, security breaches or governmental regulations.
Particularly for operators outside of the United States, LTC trading platforms are not regulated in ways similar to national securities
exchanges and other highly regulated trading environments. As a result, capital requirements, clearing infrastructure and technical and
operational security requirements may vary. The nature of the assets held at LTC trading platforms makes them appealing targets for hackers
and a number of LTC trading platforms have been victims of cybercrimes. In many of these instances, the customers of such LTC trading
platforms were not compensated or made whole for the partial or complete losses of their account balances in such trading platforms. No
LTC trading platform is immune from these risks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 31; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While the Trust itself does
not buy or sell LTC on LTC trading platforms, certainty in LTC trading markets may impact the Trust&rsquo;s operation and the value of
the Shares. Negative perception, a lack of stability in the LTC trading markets and the closure or temporary shutdown of digital asset
trading platforms due to fraud, business failure, hackers or malware, or government-mandated regulation may reduce confidence in the Litecoin
Blockchain and result in greater volatility in the prices of LTC. Furthermore, the closure or temporary shutdown of a LTC trading platform
used in calculating the Index may result in a loss of confidence in the Trust&rsquo;s ability to determine its NAV on a daily basis. These
potential consequences of such a LTC trading platform&rsquo;s failure could adversely affect the value of the Shares. Further, the failure
of the LTC market, major LTC trading platforms or any other major component of the overall LTC ecosystem can have a direct adverse effect
on the liquidity and price of LTC and could therefore have a negative impact on the performance of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The value of LTC may
be subject to momentum pricing whereby the current LTC price may account for speculation regarding future appreciation in value. Momentum
pricing may result in greater volatility and adversely affect an investment in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Momentum pricing typically
is associated with growth stocks and other assets whose valuation, as determined by the investing public, accounts for anticipated future
appreciation in value. The Sponsor believes that momentum pricing of LTC has resulted, and may continue to result, in speculation regarding
future appreciation in the value of LTC, inflating and making more volatile the price of LTC. As a result, LTC may be more likely to fluctuate
in value due to changing investor confidence in future appreciation (or depreciation) in the price of LTC, which could adversely affect
an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>Risk Factors
Related to the LTC Exchange Market</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The value of the Shares
relates directly to the value of the LTC held by the Trust and fluctuations in the price of LTC could materially and adversely affect
an investment in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares are designed to
mirror as closely as possible the performance of the price of LTC, as measured by the Index, and the value of the Shares relates directly
to the value of the LTC held by the Trust, less the Trust&rsquo;s liabilities (including estimated accrued but unpaid fees and expenses).
The Index is an independently calculated value based on an aggregation of executed trade flow of major LTC spot exchanges (&ldquo;LTC
Exchanges&rdquo; and the general market environment of LTC Exchanges, the &ldquo;LTC Exchange Market&rdquo;). Only trades from the selected
LTC Exchanges (the &ldquo;Selected Exchanges&rdquo;) will be considered in the Index computation. The price of LTC has fluctuated widely
over the past several years and may continue to experience significant price fluctuations. Several factors may affect the LTC Index Price,
including, but not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total LTC in existence (estimated at approximately ________ as of ________, 202__;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Global LTC demand, which is influenced by the growth of retail merchants&rsquo; and commercial businesses&rsquo; acceptance of LTC as payment for goods and services, the security of online LTC Exchanges and digital wallets that hold LTC, the perception that the use and holding of LTC is safe and secure, the lack of regulatory restrictions on their use and the reputation of LTC for illicit use;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Global LTC supply, which is influenced by similar factors as global LTC demand, in addition to fiat currency needs by miners (for example, to invest in equipment or pay electricity bills) and taxpayers who may liquidate LTC holdings around tax deadlines to meet tax obligations;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investors&rsquo; expectations with respect to the rate of inflation of fiat currencies;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investors&rsquo; expectations with respect to the rate of deflation of LTC;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interest rates;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Currency exchange rates, including the rates at which LTC may be exchanged for fiat currencies;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fiat currency withdrawal and deposit policies of LTC Exchanges and liquidity of such LTC Exchanges;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interruptions in service from or failures of major LTC Exchanges;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cyber theft of LTC from online LTC wallet providers, or news of such theft from such providers, or from individuals&rsquo; LTC wallets;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investment and trading activities of large investors, including private and registered funds, that may directly or indirectly invest in LTC;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Monetary policies of governments, trade restrictions, currency devaluations and revaluations;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Regulatory measures, if any, that restrict the use of LTC as a form of payment or the purchase of LTC on the LTC Exchange Market;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The availability and popularity of businesses that provide LTC-related services;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 32; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The maintenance and development of the open-source software protocol of the Litecoin Blockchain;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Increased competition from other forms of cryptocurrency or payment services;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Global or regional political, economic or financial events and situations;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expectations among LTC economy participants that the value of LTC will soon change; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fees associated with processing a LTC transaction.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If LTC markets continue to
be subject to sharp fluctuations, you may experience losses if you need to sell your Shares at a time when the price of LTC is lower than
it was when you made your prior investment. Even if you are able to hold Shares for the long term, your Shares may never generate a profit,
since LTC markets have historically experienced extended periods of flat or declining prices, as well as sharp fluctuations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, investors should
be aware that there is no assurance that LTC will maintain their long-term value in terms of future purchasing power or that the acceptance
of LTC payments by mainstream retail merchants and commercial businesses will continue to grow. In the event that the price of LTC declines,
the Sponsor expects the value of an investment in the Shares to decline proportionately.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Due to the unregulated
nature and lack of transparency surrounding the operations of LTC Exchanges, the marketplace may lose confidence in LTC Exchanges, upon
which the Trust is dependent.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC Exchanges are relatively
new and, in some cases, unregulated. Furthermore, while many prominent LTC Exchanges provide the public with significant information regarding
their ownership structure, management teams, corporate practices and regulatory compliance, many LTC Exchanges do not provide this information.
As a result, the marketplace may lose confidence in LTC Exchanges, including prominent exchanges that handle a significant volume of LTC
trading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For example, in 2019 there
were reports claiming that 80-95% of bitcoin trading volume on digital asset exchanges was false or non-economic in nature, with specific
focus on unregulated exchanges located outside of the United States. Such reports may indicate that the digital asset exchange market
is significantly smaller than expected and that the United States makes up a significantly larger percentage of the digital asset exchange
market than is commonly understood. Nonetheless, any actual or perceived false trading in the digital asset exchange market and the LTC
Exchange Market, and any other fraudulent or manipulative acts and practices, could adversely affect the value of LTC and/or negatively
affect the market perception of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, over the past
several years, some LTC Exchanges have been closed due to fraud and manipulative activity, business failure or security breaches. In many
of these instances, the customers of such LTC Exchanges were not compensated or made whole for the partial or complete losses of their
account balances in such LTC Exchanges. While smaller LTC Exchanges are less likely to have the infrastructure and capitalization that
make larger LTC Exchanges more stable, larger LTC Exchanges are more likely to be appealing targets for hackers and malware and may be
more likely to be targets of regulatory enforcement action. For example, the collapse of Mt. Gox, which filed for bankruptcy protection
in Japan in late February 2014, demonstrated that even the largest digital asset exchanges could be subject to abrupt failure with consequences
for users of LTC Exchanges and for the LTC industry as a whole. In particular, in the two weeks that followed the February 7, 2014 halt
of bitcoin withdrawals from Mt. Gox, the value of one bitcoin fell on other exchanges from around $795 on February 6, 2014 to $578 on
February 20, 2014.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In January 2015, Bitstamp
announced that approximately 19,000 bitcoin had been stolen from its operational or &ldquo;hot&rdquo; wallets. Further, in August 2016,
it was reported that almost 120,000 bitcoin worth around $78 million were stolen from Bitfinex, a large digital asset exchange. The value
of bitcoin immediately decreased over 10% following reports of the theft at Bitfinex. In July 2017, FinCEN assessed a $110 million fine
against BTC-E, a now-defunct digital asset exchange, for facilitating crimes such as drug sales and ransomware attacks. In addition, in
December 2017, Yapian, the operator of Seoul-based cryptocurrency exchange Youbit, suspended digital asset trading and filed for bankruptcy
following a hack that resulted in a loss of 17% of Yapian&rsquo;s assets. Following the hack, Youbit users were allowed to withdraw approximately
75% of the digital assets in their exchange accounts, with any potential further distributions to be made following Yapian&rsquo;s pending
bankruptcy proceedings. In January 2018, the Japanese digital asset exchange Coincheck was hacked, resulting in losses of approximately
$535 million, and in February 2018, the Italian digital asset exchange Bitgrail was hacked, resulting in approximately $170 million in
losses. In May 2019, one of the world&rsquo;s largest digital asset exchanges, Binance, was hacked, resulting in losses of approximately
$40 million. Further, in November 2022, FTX, one of the largest digital asset exchanges by volume at the time, halted customer withdrawals
amid rumors of the company&rsquo;s liquidity issues and likely insolvency, which were subsequently corroborated by its CEO. Shortly thereafter,
FTX&rsquo;s CEO resigned and FTX and many of its affiliates filed for bankruptcy in the United States, while other affiliates have entered
insolvency, liquidation, or similar proceedings around the globe, following which the U.S. Department of Justice brought criminal fraud
and other charges, and the SEC and CFTC brought civil securities and commodities fraud charges, against certain of FTX&rsquo;s and its
affiliates&rsquo; senior executives, including its former CEO. Around the same time, there were reports that approximately $300-600 million
of digital assets were removed from FTX and the full facts remain unknown, including whether such removal was the result of a hack, theft,
insider activity, or other improper behavior. Various claims and issues related to FTX have not yet been resolved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 33; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC trading venues that are
regulated typically must comply with minimum net worth, cybersecurity, and AML requirements, but are not typically required to protect
customers to the same extent as regulated securities exchanges or futures exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Some academics and market
observers have put forth evidence to support claims that manipulative trading activity has occurred on certain digital asset exchange.
For example, in a 2017 paper titled &ldquo;Price Manipulation in the Bitcoin Ecosystem&rdquo; sponsored by the Interdisciplinary Cyber
Research Center at Tel Aviv University, a group of researchers used publicly available trading data, as well as leaked transaction data
from a 2014 Mt. Gox security breach, to identify and analyze the impact of &ldquo;suspicious trading activity&rdquo; on Mt. Gox between
February and November 2013, which, according to the authors, caused the price of bitcoin to increase from around $150 to more than $1,000
over a two-month period. In August 2017, it was reported that a trader or group of traders nicknamed &ldquo;Spoofy&rdquo; was placing
large orders on Bitfinex without actually executing them, presumably in order to influence other investors into buying or selling by creating
a false appearance that greater demand existed in the market. In December 2017, an anonymous blogger (publishing under the pseudonym Bitfinex&rsquo;d)
cited publicly available trading data to support his or her claim that a trading bot nicknamed &ldquo;Picasso&rdquo; was pursuing a paint-the-tape-style
manipulation strategy by buying and selling bitcoin and bitcoin cash between affiliated accounts in order to create the appearance of
substantial trading activity and thereby influence the price of such assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, many digital
asset exchange lack certain safeguards put in place by exchanges for more traditional assets to enhance the stability of trading on the
exchanges and prevent &ldquo;flash crashes,&rdquo; such as limit-down circuit breakers. As a result, the prices of LTC on trading venues
may be subject to larger and/or more frequent sudden declines than assets traded on more traditional exchanges. The lack of certain safeguards
also may permit &ldquo;front-running&rdquo; (trading by other persons ahead of the Trust with the intention of obtaining better results
than the Trust). Such trading could occur in the event that an individual associated with a trading venue uses information regarding the
Trust&rsquo;s trading activity to the detriment of the Trust. In addition, the lack of trading safeguards may permit &ldquo;wash trading&rdquo;
(sales of LTC by the Trust for a loss followed by repurchases of LTC that, under IRS rules, may prevent the Trust from claiming a tax
loss on the sale of LTC).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Operational problems or failures
by LTC trading venues and fluctuations in LTC prices may reduce confidence in these venues or in LTC generally, which could adversely
affect the price of LTC and therefore adversely affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Negative perception, a lack
of stability in the LTC Exchange Markets and the closure or temporary shutdown of LTC Exchanges due to fraud, business failure, hackers
or malware, or government-mandated regulation may reduce confidence in the Litecoin Blockchain and result in greater volatility in the
prices of LTC. Furthermore, the closure or temporary shutdown of a LTC Exchange used in calculating the LTC Index Price may result in
a loss of confidence in the Trust&rsquo;s ability to determine its LTC Holdings on a daily basis or for the Trust&rsquo;s Authorized Participants
to effectively arbitrage the Trust&rsquo;s Shares. These potential consequences of such a LTC Exchange&rsquo;s failure could adversely
affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Since there is no limit
on the number of LTC that the Trust may acquire, the Trust itself, as it grows, may have an impact on the supply and demand of LTC that
ultimately may affect the price of the Shares in a manner unrelated to other factors affecting the global market for LTC.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust Agreement places
no limit on the number of LTC the Trust may hold. Moreover, the Trust may issue an unlimited number of Shares, subject to registration
requirements, and therefore acquire an unlimited number of LTC in existence at any point in time. The global market for LTC is characterized
by supply and demand constraints that generally are not present in the markets for commodities or other assets such as gold and silver.
The Litecoin Blockchain&rsquo;s mathematical protocols under which LTC are created or &ldquo;mined&rdquo; permit the creation of a limited,
predetermined number of LTC not to exceed 84 million. Furthermore, the rate of creation or issuance of LTC cannot be increased ahead of
the protocol&rsquo;s schedule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the number of LTC acquired
by the Trust is large enough relative to global LTC supply and demand, further creations and redemptions of Shares could have an impact
on the supply of and demand for LTC in a manner unrelated to other factors affecting the global market for LTC. Such an impact could affect
the LTC Index Price, which would directly affect the price at which Shares are traded on Nasdaq or the price of future Baskets created
or redeemed by the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I></I></B></P>

<!-- Field: Page; Sequence: 34; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Shares may trade
at a discount or premium in the trading price relative to the Trust&rsquo;s LTC Holdings per Share as a result of non-concurrent trading
hours between Nasdaq and the LTC Exchange Market.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The value of a Share may be
influenced by non-concurrent trading hours between Nasdaq and various LTC Exchanges, including those that are included within the Index&rsquo;s
methodology. While Nasdaq is open for trading in the Shares for a limited period each day, the LTC Exchange Market is a 24-hour marketplace;
however, trading volume and liquidity on the LTC Exchange Market are not consistent throughout the day and LTC Exchanges, including the
larger-volume markets, have been known to shut down temporarily or permanently due to security concerns, distributed denial-of-service
(&ldquo;DDoS&rdquo;) attacks and other reasons. As a result, during periods when Nasdaq is open but large LTC Exchanges (or a substantial
number of smaller LTC Exchanges) are either lightly traded or closed, trading spreads and the resulting premium or discount on the Shares
may widen and, therefore, increase the difference between the price of the Shares and the Trust&rsquo;s LTC Holdings per Share. Premiums
or discounts may have an adverse effect on an investment in the Shares if a Shareholder sells or acquires its Shares during a period of
discount or premium, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>If LTC prices on the
LTC Exchange Market move negatively during hours when Nasdaq is closed, trading prices on Nasdaq may &ldquo;gap&rdquo; down at market
open.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The value of a Share may be
influenced by non-concurrent trading hours between Nasdaq and various LTC Exchanges, including those that represent components of the
Index. While Nasdaq is open for trading in the Shares for a limited period each day, the LTC Exchange Market is a 24-hour marketplace.
During periods when Nasdaq is closed but LTC Exchanges are open, significant changes in the price of LTC on the Exchange Market could
result in a difference in performance between the value of LTC as measured by the Index and the most recent LTC Holdings per Share or
closing trading price. To the extent that the price of LTC on the Exchange Market and the value of LTC as measured by the Index move significantly
in a negative direction after the close of Nasdaq, the trading price of the Shares may &ldquo;gap&rdquo; down to the full extent of such
negative price shift when Nasdaq reopens. To the extent that the price of LTC on the Exchange Market drops significantly during hours
Nasdaq is closed, investors may not be able to sell their Shares until after the &ldquo;gap&rdquo; down has been fully realized, resulting
in an inability to mitigate losses in a rapidly negative market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>LTC Exchanges are subject
to the risk of fraud and manipulation.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The LTC market globally and
in the United States is not subject to comparable regulatory guardrails as exist in regulated securities markets. Furthermore, many LTC
trading venues lack certain safeguards put in place by exchanges for more traditional assets to enhance the stability of trading on the
exchanges and prevent &ldquo;flash crashes,&rdquo; such as limit-down circuit breakers. As a result, the prices of LTC on trading venues
may be subject to larger and/or more frequent sudden declines than assets traded on more traditional exchanges. Tools to detect and deter
fraudulent or manipulative trading activities such as market manipulation, front-running of trades, and wash trading may not be available
to or employed by digital asset trading platforms, or may not exist at all. The SEC has identified possible sources of fraud and manipulation
in the LTC market generally, including, among others (1) wash trading; (2) persons with a dominant position in LTC manipulating LTC pricing;
(3) hacking of the Litecoin Blockchain and trading platforms; (4) malicious control of the Litecoin Blockchain; (5) trading based on material,
non-public information (for example, plans of market participants to significantly increase or decrease their holdings in LTC, new sources
of demand for LTC) or based on the dissemination of false and misleading information; (6) manipulative activity involving purported &ldquo;stablecoins,&rdquo;
including Tether, the activities of stablecoin issuers and their regulatory treatment; and (7) fraud and manipulation at LTC trading platforms.
The effect of potential market manipulation, front-running, wash trading, and other fraudulent or manipulative trading practices may inflate
the volumes actually present in the crypto market and/or cause distortions in price, which could adversely affect the Trust or cause losses
to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>LTC Exchanges may be
exposed to front-running.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC Exchanges on which LTC
trades may be susceptible to &ldquo;front-running,&rdquo; which refers to the process when someone uses technology or market advantage
to get prior knowledge of upcoming transactions. Front-running is a frequent activity on centralized as well as decentralized exchanges.
By using bots functioning on a millisecond-scale timeframe, bad actors are able to take advantage of the forthcoming price movement and
make economic gains at the cost of those who had introduced these transactions. The objective of a front runner is to buy a chunk of tokens
at a low price and later sell them at a higher price while simultaneously exiting the position. Front-running happens via manipulations
of gas prices or timestamps, also known as slow matching. To the extent that front-running occurs, it may result in investor frustrations
and concerns as to the price integrity of digital asset trading platforms and digital assets more generally.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 35; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>LTC Exchanges may be
exposed to wash trading. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC Exchanges on which LTC
trades may be susceptible to wash trading. Wash trading occurs when offsetting trades are entered into for other than bona fide reasons,
such as the desire to inflate reported trading volumes. Wash trading may be motivated by non-economic reasons, such as a desire for increased
visibility on popular websites that monitor markets for digital assets so as to improve their attractiveness to investors who look for
maximum liquidity, or it may be motivated by the ability to attract listing fees from token issuers who seek the most liquid and high-volume
exchanges on which to list their coins. Results of wash trading may include unexpected obstacles to trade and erroneous investment decisions
based on false information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the United States, there
have been allegations of wash trading even on regulated venues. Any actual or perceived false trading in the digital asset exchange market,
and any other fraudulent or manipulative acts and practices, could adversely affect the value of LTC and/or negatively affect the market
perception of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent that wash trading
either occurs or appears to occur in LTC Exchanges on which LTC trades, investors may develop negative perceptions about LTC and the digital
assets industry more broadly, which could adversely impact the price of LTC and, therefore, the price of Shares. Wash trading also may
place more legitimate digital asset trading platforms at a relative competitive disadvantage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>A possible &ldquo;short
squeeze&rdquo; due to a sudden increase in demand for the Shares that largely exceeds supply may lead to price volatility in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors may purchase Shares
to hedge existing LTC or other digital currencies, commodity or currency exposure or to speculate on the price of LTC. Speculation on
the price of LTC may involve long and short exposures. To the extent that aggregate short exposure exceeds the number of Shares available
for purchase (for example, in the event that large redemption requests by Authorized Participants dramatically affect Share liquidity),
investors with short exposure may have to pay a premium to repurchase Shares for delivery to Share lenders. Those repurchases may, in
turn, dramatically increase the price of the Shares until additional Shares are created through the creation process. This is often referred
to as a &ldquo;short squeeze.&rdquo; A short squeeze could lead to volatile price movements in the Shares that are not directly correlated
to the price of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Purchasing activity
in the LTC Exchange Market associated with Basket creations or redemptions may affect the LTC Index Price and Share trading prices, adversely
affecting an investment in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Purchasing activity associated
with acquiring LTC with proceeds received by the Trust in connection with the creation of Baskets may increase the market price of LTC
on the LTC Exchange Market, which will result in higher prices for the Shares. Increases in the market price of LTC may also occur as
a result of the purchasing activity of other market participants. Other market participants may attempt to benefit from an increase in
the market price of LTC that may result from increased purchasing activity of LTC connected with the issuance of Baskets. Consequently,
the market price of LTC may decline immediately after Baskets are created.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Selling activity associated
with sales of LTC withdrawn from the Trust in connection with the redemption of Baskets may decrease the market price of LTC on the LTC
Exchange Market, which will result in lower prices for the Shares. Decreases in the market price of LTC may also occur as a result of
the selling activity of other market participants. If the LTC Index Price declines, the trading price of the Shares will generally also
decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>An investment in the
Shares may be adversely affected by competition from other methods of investing in LTC.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust competes with direct
investments in LTC and other potential financial vehicles, possibly including securities backed by or linked to LTC and digital currency
financial vehicles similar to the Trust. Market and financial conditions, and other conditions beyond the Sponsor&rsquo;s control, may
make it more attractive to invest in other financial vehicles or to invest in LTC directly, which could limit the market for the Shares
and reduce the liquidity of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The LTC Index Price
may be affected by the sale of other digital currency financial vehicles that invest in and track the price of LTC.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent digital currency
financial vehicles other than the Trust tracking the price of LTC are formed and represent a significant proportion of the demand for
LTC, large redemptions of the securities of these digital currency financial vehicles, or private funds holding LTC, could negatively
affect the LTC Index Price, the Trust&rsquo;s LTC Holdings and the price of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 36; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The impact of geopolitical
or economic events on the supply and demand for LTC is uncertain but could motivate large-scale sales of LTC, which could result in a
reduction in the LTC Index Price and adversely affect an investment in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As an alternative to fiat
currencies that are backed by central governments, digital assets such as LTC, which are relatively new, are subject to supply and demand
forces based on the desirability of an alternative, decentralized means of buying and selling goods and services, and it is unclear how
such supply and demand will be impacted by geopolitical events. Nevertheless, political or economic crises may motivate large-scale acquisitions
or sales of LTC either globally or locally. Large-scale sales of LTC would result in a reduction in the LTC Index Price and could adversely
affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Demand for LTC is driven,
in part, by its status as a prominent and secure digital asset. It is possible that a digital asset other than LTC could have features
that make it more desirable to a material portion of the digital asset user base, resulting in a reduction in demand for LTC, which could
have a negative impact on the price of LTC and adversely affect an investment in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of ________, 202_, LTC
was the ________ largest digital asset by market capitalization as tracked by CoinMarketCap.com. As of ________, 202_, there were over
8,000 alternative digital assets tracked by CoinMarketCap.com, having a total market capitalization of approximately $____ trillion (including
the approximately $____ billion market cap of LTC), as calculated using market prices and total available supply of each digital asset,
excluding tokens pegged to other assets. Many consortiums and financial institutions are also researching and investing resources into
private or permissioned smart contracts platforms rather than open platforms like the Litecoin Blockchain. Competition from the emergence
or growth of alternative digital assets and smart contracts platforms, such as Solana, Avalanche or Cardano, could have a negative impact
on the demand for, and price of, LTC and thereby adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors may invest in LTC
through means other than the Shares, including through direct investments in LTC and other potential financial vehicles, possibly including
securities backed by or linked to LTC and digital asset financial vehicles similar to the Trust. Market and financial conditions, and
other conditions beyond the Sponsor&rsquo;s control, may make it more attractive to invest in other financial vehicles or to invest in
LTC directly, which could limit the market for, and reduce the liquidity of, the Shares. In addition, to the extent digital asset financial
vehicles other than the Trust tracking the price of LTC are formed and represent a significant proportion of the demand for LTC, large
purchases or redemptions of the securities of these digital asset financial vehicles, or private funds holding LTC, could negatively affect
the LTC Index Price, the LTC Holdings, the price of the Shares, the NAV and the NAV per Share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>Risk Factors
Related to the Trust and the Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>As the Sponsor and its
management have no meaningful history of operating an investment vehicle like the Trust, their experience may be inadequate or unsuitable
to manage the Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor has no meaningful
history of past performance in managing investment vehicles like the Trust. Affiliates of the Sponsor have operated similar products in
Europe for several years. The past performances of the Sponsor&rsquo;s management in other investment vehicles, including their experiences
in the LTC and private funds industries, are no indication of their ability to manage an investment vehicle such as the Trust. If the
experience of the Sponsor and its management is inadequate or unsuitable to manage an investment vehicle such as the Trust, the operations
of the Trust may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The value of the Shares
could decrease if unanticipated operational or trading problems arise.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The mechanisms and procedures
governing the creation, redemption and offering of the Shares and storage of the LTC have been developed specifically for this product.
There may be unanticipated problems or issues with respect to the mechanics of the Trust&rsquo;s operations and the trading of the Shares
that could have an adverse effect on an investment in the Shares. In addition, although the Trust is not actively &ldquo;managed&rdquo;
by traditional methods, to the extent that unanticipated operational or trading problems or issues arise, the Sponsor&rsquo;s past experience
and qualifications may not be suitable for solving these problems or issues.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Shares may trade
at a price which that is at, above or below the Trust&rsquo;s LTC Holdings per Share and any discount or premium in the trading price
relative to the Trust&rsquo;s LTC Holdings per Share may widen as a result of non-concurrent trading hours.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares may trade on Nasdaq
at, above or below the Trust&rsquo;s LTC Holdings per Share. The Trust&rsquo;s LTC Holdings per Share will fluctuate with changes in the
market value of the Trust&rsquo;s assets. The trading price of the Shares will fluctuate in accordance with changes in the Trust&rsquo;s
LTC Holdings per Share as well as market supply and demand. The price difference may be due, in large part, to the fact that supply and
demand forces at work in the public trading market for Shares are closely related, but not identical, to the same forces influencing the
LTC Index Price. Consequently, an Authorized Participant may be able to create or redeem a Basket of Shares at a discount or a premium
to the public trading price per Share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Authorized Participants, or
their clients or customers, may have an opportunity to participate directly in the spot markets and they may profit in these instances
if they can create a Basket at a discount to the public trading price of the Shares or can redeem a Basket at a premium over the public
trading price of the Shares. The Sponsor expects that the exploitation of such arbitrage opportunities by Authorized Participants and
their clients and customers will tend to cause the public trading price to track the LTC Holdings per Share closely over time. Such arbitrage
opportunities will not be available to Shareholders who are not Authorized Participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 37; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Trust is a passive
investment vehicle. The Trust is not actively managed and will be affected by a general decline in the price of LTC.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor does not actively
manage the LTC held by the Trust. This means that the Sponsor does not sell LTC at times when its price is high, or acquire LTC at low
prices in the expectation of future price increases. It also means that the Sponsor does not make use of any of the hedging techniques
available to professional LTC investors to attempt to reduce the risks of losses resulting from price decreases. Any losses sustained
by the Trust will adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>If Authorized Participants
are able to purchase or sell large aggregations of LTC in the open market at prices that are different than the LTC Index Price, the arbitrage
mechanism intended to keep the price of the Shares closely linked to the LTC Index Price may not function properly and the Shares may
trade at a discount or premium to the LTC Holdings per Share.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The arbitrage mechanism on
which the Trust relies to keep the price of the Shares closely linked to the LTC Index Price may not function properly if Authorized Participants
are able to purchase or sell large aggregations of LTC in the open market at prices that are materially higher or lower than the LTC Index
Price. Authorized Participants may purchase or sell LTC on public or private markets not included among the LTC Exchanges included in
the Index, and such transactions may take place at prices materially higher or lower than the LTC Index Price. Furthermore, while the
Index provides a reference rate for the price of LTC by identifying the principal exchange of LTC at any given time, the prices on each
individual LTC Exchange are not necessarily equal to the value of a LTC as represented by the Index.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the average price
variance between the LTC Index Price and the price of LTC on the LTC Exchanges, both individually and as a group, has historically been
immaterial, the price of LTC on an individual LTC Exchange has historically been, and could in the future be, materially higher or lower
than the LTC Index Price. Under either such circumstance, the arbitrage mechanism will function to link the price of the Shares to the
prices at which Authorized Participants are able to purchase or sell large aggregations of LTC. To the extent such prices differ materially
from the LTC Index Price, the price of the Shares may no longer track, whether temporarily or over time, the LTC Index Price, which could
adversely affect an investment in the Trust by reducing investors&rsquo; confidence in the Shares&rsquo; ability to track the market price
of LTC and the LTC Index Price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Arbitrage transactions
intended to keep the price of Shares closely linked to the price of LTC may be problematic if the process for the purchase and redemption
of Baskets encounters difficulties, which may adversely affect an investment in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the processes of creation
and redemption of Shares (which depend on timely transfers of LTC to and by the Custodians) encounter any unanticipated difficulties due
to, for example, the price volatility of LTC, the insolvency, business failure or interruption, default, failure to perform, security
breach, or other problems affecting the Prime Broker or Custodians, the operational issues that may arise from the initial implementation
of an all-cash trade model to accommodate the change from the originally contemplated in-kind creations and redemptions to cash creations
and redemptions, the closing of LTC trading platforms due to fraud, failures, security breaches or otherwise, or network outages or congestion,
spikes in transaction fees demanded by miners, or other problems or disruptions affecting the Litecoin Blockchain, then potential market
participants, such as the Authorized Participants and their customers, who would otherwise be willing to purchase or redeem Baskets to
take advantage of any arbitrage opportunity arising from discrepancies between the price of the Shares and the price of the underlying
LTC may not take the risk that, as a result of those difficulties, they may not be able to realize the profit they expect. Alternatively,
in the case of a network outage or other problems affecting the Litecoin Blockchain, the processing of transactions on the Litecoin Blockchain
may be disrupted, which in turn may prevent LTC Trading Counterparties from depositing or withdrawing LTC from their accounts, which in
turn could affect the creation or redemption of Baskets. If this is the case, the liquidity of the Shares may decline and the price of
the Shares may fluctuate independently of the price of LTC and may fall or otherwise diverge from NAV. Furthermore, in the event that
the market for LTC should become relatively illiquid and thereby materially restrict opportunities for arbitraging by delivering LTC in
return for Baskets, the price of Shares may diverge from the value of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 38; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The use of cash creations
and redemptions, as opposed to in-kind creations and redemptions, may adversely affect the arbitrage transactions by Authorized Participants
intended to keep the price of the Shares closely linked to the price of LTC and, as a result, the price of the Shares may fall or otherwise
diverge from NAV.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The use of cash creations
and redemptions, as opposed to in-kind creations and redemptions, could cause delays in trade execution due to potential operational issues
arising from implementing a cash creation and redemption model, which involves greater operational steps (and therefore execution risk)
than the originally contemplated in-kind creation and redemption model, or the potential unavailability or exhaustion of the Trade Credits,
which the Trust would not be able to use in connection with in-kind creations and redemptions. Such delays could cause the execution price
associated with such trades to materially deviate from the Index price used to determine the NAV. Even though the Authorized Participant
is responsible for the dollar cost of such difference in prices, Authorized Participants could default on their obligations to the Trust,
or such potential risks and costs could lead to Authorized Participants, who would otherwise be willing to purchase or redeem Baskets
to take advantage of any arbitrage opportunity arising from discrepancies between the price of the Shares and the price of the underlying
LTC, to elect to not participate in the Trust&rsquo;s Share creation and redemption processes. This may adversely affect the arbitrage
mechanism intended to keep the price of the Shares closely linked to the price of LTC and, as a result, the price of the Shares may fall
or otherwise diverge from NAV. If the arbitrage mechanism is not effective, purchases or sales of Shares on the secondary market could
occur at a premium or discount to NAV, which could harm Shareholders by causing them to buy Shares at a price higher than the value of
the underlying LTC held by the Trust or to sell Shares at a price lower than the value of the underlying LTC held by the Trust, causing
Shareholders to suffer losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The inability of Authorized
Participants and market makers to hedge their LTC exposure may adversely affect the liquidity of Shares and the value of an investment
in the Shares. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Authorized Participants and
market makers will generally want to hedge their exposure in connection with Basket creation and redemption orders. To the extent Authorized
Participants and market makers are unable to hedge their exposure due to market conditions (e.g., insufficient LTC liquidity in the market,
inability to locate an appropriate hedge counterparty, extreme volatility in the price of LTC, wide spreads between prices quoted on different
LTC trading platforms, etc.), such conditions may make it difficult to create or redeem Baskets or cause them not to create or redeem
Baskets. In addition, the hedging mechanisms employed by Authorized Participants and market makers to hedge their exposure to LTC may
not function as intended, which may make it more difficult for them to enter into such transactions. Such events could negatively impact
the market price of Shares and the spread at which Shares trade on the open market. To the extent Authorized Participants wish to use
futures to hedge their exposure, note that while growing in recent years, the market for exchange-traded LTC futures has a limited trading
history and operational experience and may be less liquid, more volatile and more vulnerable to economic, market and industry changes
than more established futures markets. The liquidity of the market will depend on, among other things, the adoption of LTC and the commercial
and speculative interest in the market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Authorized Participants
serve in such capacity for several competing exchange-traded LTC products, which could adversely affect the market for the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Only an Authorized Participant
may engage in creation or redemption transactions directly with the Trust. Some or all of the Trust&rsquo;s Authorized Participants are
expected to serve as authorized participants or market makers for one or more exchange-traded LTC products that compete with the Trust.
This may make it more difficult to engage or retain Authorized Participants for the Trust. Furthermore, because there is no obligation
on the part of the Authorized Participants to engage in creation and redemption or market making activities with respect to the Trust&rsquo;s
Shares, decisions by the Authorized Participants to not engage with the Trust or its Shares may result in a decline in the liquidity of
the Shares and the price of the Shares may fluctuate independently of the price of Trust&rsquo;s LTC (i.e., at a greater premium or discount
to the Trust&rsquo;s NAV).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The postponement, suspension
or rejection of creation or redemption orders may adversely affect an investment in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust Agreement,
the Sponsor may suspend or reject creation or redemption orders, as applicable, for a variety of permitted reasons under certain circumstances.
To the extent such orders are suspended or rejected, the arbitrage mechanism resulting from the process through which Authorized Participants
create and redeem Shares directly with the Trust may fail to closely link the price of the Shares to the value of the underlying LTC,
as measured using the LTC Index Price. If this is the case, the liquidity of the Shares may decline and the price of the Shares may fluctuate
independently of the LTC Index Price and may fall.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, the placement
of in-cash creation and redemption orders requires additional administrative steps as compared to in-kind creation and redemption orders,
which could hinder arbitrage opportunities for in-cash creation and redemption orders. The Sponsor, Administrator or Marketing Agent&rsquo;s
failure to quickly execute such administrative steps could cause a delay in the execution of an Authorized Participant&rsquo;s order,
which could hinder an Authorized Participant&rsquo;s ability to arbitrage the difference between the LTC Index Price and the price of
the Shares, thereby impacting an Authorized Participant&rsquo;s ability to keep the price of the Shares closely linked to the LTC Index
Price. See &ldquo;Description of Creation and Redemption of Shares.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 39; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Trust could experience
unforeseen difficulties in operating and maintaining key elements of its technical infrastructure.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The LTC Account has been designed
specifically to provide security for the Trust&rsquo;s assets and may be expanded, updated and altered from time to time. Any effort to
expand, update or alter the security system is likely to be complex, and unanticipated delays in the completion of these projects may
lead to unanticipated project costs, operational inefficiencies or vulnerabilities to security breaches. In addition, there may be problems
with the design or implementation of the LTC Account or with an expansion or upgrade thereto that are not evident during the testing phases
of design and implementation, and that may only become apparent after the Trust has utilized the infrastructure. Any issues relating to
the performance and effectiveness of the security procedures used by the Trust and the Custodians to protect the LTC Account, such as
algorithms, codes, passwords, multiple signature systems, encryption and telephone call-backs (together, the &ldquo;Security Procedures&rdquo;),
may have an adverse impact on an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Security Procedures implemented
by the Custodians are technical and complex, and the Trust depends on the Security Procedures to protect the storage, acceptance and distribution
of data relating to LTC and the digital wallets into which the Trust deposits its LTC. The Security Procedures may not protect against
all errors, software flaws (i.e., bugs) or vulnerabilities. Defects in the Security Procedures may only be discovered after a failure
in a Custodian&rsquo;s safekeeping and storage of the Trust&rsquo;s LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">It is not uncommon for businesses
in the digital asset space to experience large losses due to fraud and breaches of their security systems. For example, in September 2015,
the global bitcoin payment agent BitPay lost approximately $1.8 million of bitcoin due to a hacker&rsquo;s fraudulent impersonation of
BitPay&rsquo;s CFO, whereby the hacker was able to access the CFO&rsquo;s email account and successfully request BitPay&rsquo;s custodian
to transfer funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, the Trust&rsquo;s
private keys required to transfer the Trust&rsquo;s LTC are stored in vaults located across the world, including but not limited to the
United States, Europe, including Switzerland, and South America, which could be subject to (i) hostile regulatory treatment of LTC, (ii)
unforeseen social, economic or political unrest and (iii) natural or man-made disaster. For example, one of the Custodian&rsquo;s vaults
is located in a South American country that could be considered to have an elevated risk of hostile regulatory treatment and social, economic
or political unrest, including high rates of inflation and general economic mismanagement. If a vault were compromised, it could cause
a possible delay in operations of up to 72 hours, which could have a negative impact on the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Trust&rsquo;s and
the Custodians&rsquo; ability to adopt technology in response to changing security needs or trends poses a challenge to the safekeeping
of the Trust&rsquo;s LTC.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC Exchanges and large holders
of LTC must adapt to technological change in order to secure and safeguard client accounts. While the Sponsor believes the Security Procedures
in place have been reasonably designed to safeguard the Trust&rsquo;s LTC from theft, loss, destruction or other issues relating to hackers
and technological attack, such assessment is based on known technology and threats. As technological change occurs, the security threats
to the Trust&rsquo;s LTC will likely adapt and previously unknown threats may emerge. Furthermore, the Sponsor believes that the Trust
may become a more appealing target of security threats as the size of the Trust&rsquo;s assets grows. To the extent that the Trust or
the Custodians are unable to identify and mitigate or stop new security threats, the Trust&rsquo;s LTC may be subject to theft, loss,
destruction or other attack, which could have a negative impact on the performance of the Shares or result in loss of the Trust&rsquo;s
assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Security threats to
the LTC Account could result in the halting of Trust operations, the suspension of redemptions, and a loss of Trust assets or damage to
the reputation of the Trust, each of which could result in a reduction in the price of the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Security breaches, computer
malware and computer hacking attacks have been a prevalent concern in the LTC Exchange Market since the launch of the Litecoin Blockchain.
Any security breach caused by hacking, which involves efforts to gain unauthorized access to information or systems, or to cause intentional
malfunctions or loss or corruption of data, software, hardware or other computer equipment, and the inadvertent transmission of computer
viruses, could harm the Trust&rsquo;s business operations or result in loss of the Trust&rsquo;s assets. Any breach of the Trust&rsquo;s
infrastructure could result in damage to the Trust&rsquo;s reputation and reduce demand for the Shares, resulting in a reduction in the
price of the Shares. Furthermore, the Sponsor believes that, as the Trust&rsquo;s assets grow, it may become a more appealing target for
security threats such as hackers and malware.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor believes that
the Security Procedures that the Sponsor and Custodians utilize are reasonably designed to safeguard the Trust&rsquo;s LTC from theft,
loss, destruction or other issues relating to hackers and technological attack. Nevertheless, the Security Procedures cannot guarantee
the prevention of any loss due to a security breach, software defect or act of God that may be borne by the Trust, absent gross negligence,
willful misconduct or bad faith on the part of the Sponsor, the Custodians or their agents.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 40; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Security Procedures and
operational infrastructure may be breached due to the actions of outside parties, error or malfeasance of an employee of the Sponsor or
the Custodians, or otherwise, and, as a result, an unauthorized party may obtain access to the LTC Account, private keys, data or LTC.
Additionally, outside parties may attempt to fraudulently induce employees of the Custodians or the Sponsor to disclose sensitive information
in order to gain access to the Trust&rsquo;s infrastructure. As the techniques used to obtain unauthorized access, disable or degrade
service, or sabotage systems change frequently, or may be designed to remain dormant until a predetermined event and often are not recognized
until launched against a target, the Sponsor may be unable to anticipate these techniques or implement adequate preventative measures.
If an actual or perceived breach of the LTC Account occurs, the market perception of the effectiveness of the Trust could be harmed, which
could result in a reduction in the price of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event of a security
breach of the LTC Account, the Trust may cease operations, suspend redemptions or suffer a reduction in assets, the occurrence of each
of which could result in a reduction in the price of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>A loss of confidence
or breach in the Trust&rsquo;s security and technology policies may adversely affect the Trust and the value of an investment in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust, Sponsor, Custodians
and each of their agents will take measures to protect the Trust and its LTC from unauthorized access, damage or theft. However, it is
possible that the Security Procedures in place may not prevent improper access to, or damage or theft of the Trust&rsquo;s LTC. A security
breach could harm the Trust&rsquo;s reputation or result in the loss of some or all of the Trust&rsquo;s LTC, which represent the Trust&rsquo;s
only asset. A resulting perception that the Security Procedures do not adequately protect the Trust&rsquo;s LTC could result in a loss
of current or potential Shareholders, reducing demand for, and price of, the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>LTC transactions are
irrevocable and stolen or incorrectly transferred LTC may be irretrievable. As a result, any incorrectly executed LTC transactions could
adversely affect an investment in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC transactions are not reversible
without the consent and active participation of the recipient of the transaction. Once a transaction has been verified and recorded in
a block that is added to the Litecoin Blockchain, an incorrect transfer of LTC or a theft of LTC generally will not be reversible and
the Trust may not be capable of seeking compensation for any such transfer or theft. Although the Trust&rsquo;s transfers of LTC will
regularly be made to or from the LTC Account, it is possible that, through computer or human error, or through theft or criminal action,
the Trust&rsquo;s LTC could be transferred from the Prime Broker or the Custodians in incorrect amounts or to unauthorized third parties,
or to uncontrolled accounts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For example, in September
2014, the Chinese digital asset exchange Huobi announced that it had sent approximately 900 bitcoin and 8,000 LTC (worth approximately
$400,000 at the prevailing market prices at the time) to the wrong customers, although it claimed that many customers returned the bitcoin
and LTC. To the extent that the Trust is unable to seek a corrective transaction with such third party or is incapable of identifying
the third party that has received the Trust&rsquo;s LTC through error or theft, the Trust will be unable to revert or otherwise recover
incorrectly transferred Trust LTC. The Trust will also be unable to convert or recover Trust LTC transferred to uncontrolled accounts.
To the extent that the Trust is unable to seek redress for such error or theft, such loss could adversely affect an investment in the
Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Trust&rsquo;s LTC
may be subject to loss, damage, theft or restriction on access.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is a risk that some
or all of the Trust&rsquo;s LTC could be lost, stolen or destroyed. The Sponsor believes that the Trust&rsquo;s LTC held in the LTC Account
will be an appealing target to hackers or malware distributors seeking to destroy, damage or steal the Trust&rsquo;s LTC. Although the
Custodians use Security Procedures with various elements, neither the Custodians nor the Sponsor can guarantee the prevention of such
loss, damage or theft, whether caused intentionally, accidentally or by an act of God. Access to the Trust&rsquo;s LTC could also be restricted
by natural events (such as an earthquake or flood) or human actions (such as a terrorist attack). Any of these events may adversely affect
the operations of the Trust and, consequently, an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Shareholders&rsquo;
limited rights of legal recourse against the Trust, Trustee, Sponsor, Administrator, Transfer Agent, Cash Custodian, Prime Broker and
Custodians and the Trust&rsquo;s lack of direct insurance protection expose the Trust and its Shareholders to the risk of loss of the
Trust&rsquo;s LTC for which no person is liable.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is not a banking
institution and is not a member of the FDIC or Securities Investor Protection Corporation (&ldquo;SIPC&rdquo;) and, therefore, investments
in the Trust are not subject to the protections enjoyed by depositors with FDIC or SIPC member institutions. Likewise, the Custodians
are not depository institutions and are not members of the FDIC or SIPC and, therefore, the Trust&rsquo;s assets held with the Custodians
are not subject to FDIC or SIPC insurance coverage. In addition, neither the Trust nor the Sponsor insure the Trust&rsquo;s LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 41; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While the ________ Custodian
and ________have advised the Sponsor that it has insurance coverage, up to $320 million in the case of the ________Custodian, $250 million
in the case of ________and $50 million in the case of ________, that covers losses of the digital assets it custodies on behalf of its
clients, including the Trust&rsquo;s LTC, resulting from theft, Shareholders cannot be assured that the Custodians will maintain adequate
insurance, that such coverage will cover losses with respect to the Trust&rsquo;s LTC, or that sufficient insurance proceeds will be available
to cover the Trust&rsquo;s losses in full. The Custodians&rsquo; insurance may not cover the type of losses experienced by the Trust.
Alternatively, the Trust may be forced to share such insurance proceeds with other clients or customers of such Custodian, which could
reduce the amount of such proceeds that are available to the Trust. In addition, the LTC insurance market is limited, and the level of
insurance maintained by a Custodian may be substantially lower than the assets of the Trust held by such Custodian. While the Custodians
maintain certain capital reserve requirements depending on the assets under custody, and such capital reserves may provide additional
means to cover client asset losses, the Trust cannot be assured that the Custodians will maintain capital reserves sufficient to cover
actual or potential losses with respect to the Trust&rsquo;s digital assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, under each of
the Custody Agreements, the respective Custodian&rsquo;s liability is limited. With respect to the ________Custody Agreement, ________Custody&rsquo;s
liability is limited as follows, among others: (i) other than with respect to claims and losses arising from spot trading of LTC, or fraud
or willful misconduct, the Mutually Capped Liabilities (defined below), the ________Custodian&rsquo;s aggregate liability under the ________Custody
Agreement shall not exceed the greater of (A) the greater of (x) $5 million and (y) the aggregate fees paid by the Trust to the ________
Custodian in the 12 months prior to the event giving rise to the Custodian&rsquo;s liability, and (B) the value of the affected LTC or
cash giving rise to the ________Custodian&rsquo;s liability; (ii) the ________Custodian&rsquo;s aggregate liability in respect of each
cold storage address shall not exceed $100 million; (iii) in respect of the ________ Custodian&rsquo;s obligations to indemnify the Trust
and its affiliates against third-party claims and losses to the extent arising out of or relating to, among others, the ________Custodian&rsquo;s
gross negligence, violation of its confidentiality, data protection and/or information security obligations, or violation of any law,
rule or regulation with respect to the provision of its services (the &ldquo;Mutually Capped Liabilities&rdquo;), the ________Custodian&rsquo;s
liability shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the ________Custodian in the
12 months prior to the event giving rise to the ________Custodian&rsquo;s liability; and (iv) in respect of any incidental, indirect,
special, punitive, consequential or similar losses, the ________Custodian is not liable, even if the ________Custodian has been advised
of or knew or should have known of the possibility thereof. In general, the ________ Custodian is not liable under the ________Custody
Agreement unless in the event of its negligence, fraud, material violation of applicable law or willful misconduct. The ________Custodian
is not liable for delays, suspension of operations, failure in performance, or interruption of service to the extent it is directly due
to a cause or condition beyond the reasonable control of the ________Custodian. In the event of potential losses incurred by the Trust
as a result of the ________Custodian losing control of the Trust&rsquo;s LTC or failing to properly execute instructions on behalf of
the Trust, the ________Custodian&rsquo;s liability with respect to the Trust will be subject to certain limitations which may allow it
to avoid liability for potential losses or may be insufficient to cover the value of such potential losses, even if the ________Custodian
directly caused such losses. Furthermore, the insurance maintained by the ________Custodian may be insufficient to cover its liabilities
to the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the ________Custody
Agreement, ________and its affiliates, including their officers, directors, agents, and employees, are not liable for any lost profits,
special, incidental, indirect, intangible, or consequential damages resulting from authorized or unauthorized use of the Trust or Sponsor&rsquo;s
site or services. This includes damages arising from any contract, tort, negligence, strict liability, or other legal grounds, even if
________was previously advised of, knew, or should have known about the possibility of such damages. However, this exclusion of liability
does not extend to cases of ________&rsquo;s fraud, willful misconduct, or gross negligence. In situations of gross negligence, ________&rsquo;s
liability is specifically limited to the value of the digital assets or fiat currency that were affected by the negligence. Additionally,
the total liability of ________for direct damages is capped at the fees paid or payable to them under the relevant agreement during the
three-month period immediately preceding the first incident that caused the liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 42; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In general, ________&rsquo;s
(and its affiliates&rsquo;) liability arising out of or relating to the ________Custody Agreement will be limited to those damages that
are caused directly by ________&rsquo;s failure to exercise such care and skill to be reasonably expected of a professional custodian
for hire of assets of the same type as the Trust&rsquo;s assets, acting without gross negligence, willful default or fraud. More particularly,
________&rsquo;s liability is limited by the following, among others: (i) in no event shall ________ (or its affiliates) be liable for
any reduction in the value of the Trust&rsquo;s assets; (ii) in no event shall ________ (or its affiliates) be liable for any losses suffered
or incurred due to an event (or series of connected events) which could reasonably be considered to be outside of ________&rsquo;s control;
(iii) in no event shall ________ (or its affiliates) be liable for any indirect or consequential loss, loss of profits, contract, revenue,
cost, opportunity, anticipated savings, business and/or goodwill, in each case, arising out of or in connection with the ________Custody
Agreement, even if that loss or damage was reasonably foreseeable or ________ (or its affiliates) was aware of the possibility of that
loss or damage arising. To the extent that ________ (or its affiliates) is liable in accordance with the terms of the ________Custody
Agreement, ________&rsquo;s (or its affiliates&rsquo;) liability to the Trust in the case of Theft (a &ldquo;Theft&rdquo; is defined in
the ________Custody Agreement as unauthorized access to ________&rsquo;s systems by a third party resulting in a reduction of the amount
of the Trust&rsquo;s assets held by ________on behalf of the Trust) shall be limited to the higher of the service fees (paid and/or payable)
by the Trust to ________under the ________Custody Agreement during the twenty-four (24) month period immediately preceding the Theft,
or the actual amount received by ________under its insurance policies maintained, if any, for the Theft. Other than in the case of Theft,
to the extent that ________ (or its affiliates) is liable given the limitation and exclusions outlined in the ________Custody Agreement,
________ (or its affiliates) shall not be liable to the Trust (whether arising in contract, tort (including negligence), breach of statutory
duty or otherwise) for any sum which would result in ________&rsquo;s (or its affiliates) total liability under the ________Custody Agreement
to exceed the service fees paid or payable by the Trust to ________ under the agreement during the twelve (12) month period immediately
preceding the event (or series of connected events) giving rise to the liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Similarly, under the Prime
Broker Agreement, the Prime Broker&rsquo;s liability is limited as follows, among others: (i) other than with respect to claims and losses
arising from spot trading of LTC, or fraud or willful misconduct, or the PB Mutually Capped Liabilities (defined below), the Prime Broker&rsquo;s
aggregate liability shall not exceed the greater of (A) the greater of (x) $5 million and (y) the aggregate fees paid by the Trust to
the Prime Broker in the 12 months prior to the event giving rise to the Prime Broker&rsquo;s liability, and (B) the value of the cash
or affected LTC giving rise to the Prime Broker&rsquo;s liability; (ii) in respect of the Prime Broker&rsquo;s obligations to indemnify
the Trust and its affiliates against third-party claims and losses to the extent arising out of or relating to, among others, the Prime
Broker&rsquo;s gross negligence, violation of its confidentiality, data protection and/or information security obligations, violation
of any law, rule or regulation with respect to the provision of its services, or the full amount of the Trust&rsquo;s assets lost due
to the insolvency of or security event at a Connected Trading Venue (as defined below) (the &ldquo;PB Mutually Capped Liabilities&rdquo;),
the Prime Broker&rsquo;s liability shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the
Prime Broker in the 12 months prior to the event giving rise to the Prime Broker&rsquo;s liability; and (iii) in respect of any incidental,
indirect, special, punitive, consequential or similar losses, the Prime Broker is not liable, even if the Prime Broker has been advised
of or knew or should have known of the possibility thereof. In general, with limited exceptions (such as for failing to execute an order),
the Prime Broker is not liable under the Prime Broker Agreement unless in the event of its gross negligence, fraud, material violation
of applicable law or willful misconduct. The Prime Broker is not liable for delays, suspension of operations, failure in performance,
or interruption of service to the extent it is directly due to a cause or condition beyond the reasonable control of the Prime Broker.
These and the other limitations on the Prime Broker&rsquo;s liability may allow it to avoid liability for potential losses or may be insufficient
to cover the value of such potential losses, even if the Prime Broker directly caused such losses. Both the Trust and the Prime Broker
and its affiliates (including the ________ Custodian) are required to indemnify each other under certain circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Moreover, in the event of
an insolvency or bankruptcy of the Prime Broker (in the case of the Trading Account) or the Custodians (in the case of the Vault Accounts)
in the future, given that the contractual protections and legal rights of customers with respect to digital assets held on their behalf
by third parties are relatively untested in the bankruptcy of an entity such as the Custodian or Prime Broker in the virtual currency
industry, there is a risk that customers&rsquo; assets &ndash; including the Trust&rsquo;s assets &ndash; may be considered the property
of the bankruptcy estate of the Prime Broker (in the case of the Trading Account) or the Custodians (in the case of the Vault Accounts),
and customers &ndash; including the Trust &ndash; may be at risk of being treated as general unsecured creditors of such entities and
subject to the risk of total loss or markdowns on the value of such assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 43; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The ________ Custody Agreement
contains an agreement by the parties to treat the LTC credited to the Vault Account at the ________ Custodian as financial assets under
Article 8 of the New York Uniform Commercial Code (&ldquo;Article 8&rdquo;), in addition to stating that the ________ Custodian will serve
as fiduciary and custodian on the Trust&rsquo;s behalf. The ________ Custodian&rsquo;s parent, ________, has stated in its most recent
public securities filings that in light of the inclusion in its custody agreements of provisions relating to Article 8 it believes that
a court would not treat custodied digital assets as part of its general estate in the event the ________ Custodian were to experience
insolvency. However, due to the novelty of digital asset custodial arrangements courts have not yet considered this type of treatment
for custodied digital assets and it is not possible to predict with certainty how they would rule in such a scenario. If either Custodian
became subject to insolvency proceedings and a court were to rule that the custodied LTC was part of such Custodian&rsquo;s general estate
and not the property of the Trust, then the Trust would be treated as a general unsecured creditor in the respective Custodian&rsquo;s
insolvency proceedings and the Trust could be subject to the loss of all or a significant portion of its assets. Moreover, in the event
of the bankruptcy of a Custodian, an automatic stay could go into effect and protracted litigation could be required in order to recover
the assets held with such Custodian, all of which could significantly and negatively impact the Trust&rsquo;s operations and the value
of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the Prime
Broker Agreement, there is a risk that the Trading Account, in which the Trust&rsquo;s LTC and cash are held in omnibus accounts by the
Prime Broker (in the latter case, as described below in &ldquo;&mdash;Loss of a critical banking relationship for, or the failure of a
bank used by, the Prime Broker could adversely impact the Trust&rsquo;s ability to create or redeem Baskets, or could cause losses to
the Trust&rdquo;), could be considered part of the Prime Broker&rsquo;s bankruptcy estate in the event of the Prime Broker&rsquo;s bankruptcy.
The Prime Broker Agreement contains an Article 8 opt-in clause with respect to the Trust&rsquo;s assets held in the Trading Account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Broker is not required
to hold any of the LTC or cash in the Trust&rsquo;s Trading Account in segregation. Within the Trading Account, the Prime Broker Agreement
provides that the Trust does not have an identifiable claim to any particular LTC (and cash). Instead, the Trust&rsquo;s Trading Account
represents an entitlement to a <I>pro rata</I> share of the LTC (and cash) the Prime Broker has allocated to the omnibus wallets the Prime
Broker holds, as well as the accounts in the Prime Broker&rsquo;s name that the Prime Broker maintains at Connected Trading Venues (the
&ldquo;Connected Trading Venue&rdquo;) (which are typically held on an omnibus, rather than segregated, basis). If the Prime Broker suffers
an insolvency event, there is a risk that the Trust&rsquo;s assets held in the Trading Account could be considered part of the Prime Broker&rsquo;s
bankruptcy estate and the Trust could be treated as a general unsecured creditor of the Prime Broker, which could result in losses for
the Trust and Shareholders. Moreover, in the event of the bankruptcy of the Prime Broker, an automatic stay could go into effect and protracted
litigation could be required in order to recover the assets held with the Prime Broker, all of which could significantly and negatively
impact the Trust&rsquo;s operations and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust Agreement,
the Sponsor will not be liable for any liability or expense incurred, including, without limitation, as a result of any loss of LTC by
the Custodians or Prime Broker, absent fraud, gross negligence, bad faith or willful misconduct on the part of the Sponsor. As a result,
the recourse of the Trust or the Shareholders to the Sponsor, including in the event of a loss of LTC by the Custodians or Prime Broker,
is limited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shareholders&rsquo; recourse
against the Sponsor and the Trust&rsquo;s other service providers for the services they provide to the Trust, including, without limitation,
those relating to the holding of LTC or the provision of instructions relating to the movement of LTC, is limited. For the avoidance of
doubt, neither the Sponsor, the Trustee, any of their affiliates, nor any other party has guaranteed the assets or liabilities, or otherwise
assumed the liabilities, of the Trust, or the obligations or liabilities of any service provider to the Trust, including, without limitation,
the Custodians and Prime Broker. In particular, the Prime Broker Agreement and ________ Custody Agreement provide that neither the Sponsor
nor its affiliates shall have any obligation of any kind or nature whatsoever, by guaranty, enforcement or otherwise, with respect to
the performance of any of the Trust&rsquo;s obligations, agreements, representations or warranties under the Prime Broker Agreement or
________ Custody Agreement or any transaction thereunder. Consequently, a loss may be suffered with respect to the Trust&rsquo;s LTC that
is not covered by a Custodian&rsquo;s insurance and for which no person is liable in damages. As a result, the recourse of the Trust or
the Shareholders, under applicable law, is limited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 44; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->39<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>If the Trade Credits
are not available or become exhausted, the Trust may face delays in buying or selling LTC that may adversely impact Shareholders; if the
Trust does not repay the Trade Credits on time, its assets may be liquidated by the Trade Credit Lender and its affiliates.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To avoid having to pre-fund
purchases or sales of LTC in connection with cash creations and redemptions and sales of LTC to pay the Sponsor&rsquo;s Fee and any other
Trust expenses not assumed by the Sponsor, to the extent applicable, the Trust may borrow LTC or cash as trade credit (&ldquo;Trade Credit&rdquo;)
from ________ (the &ldquo;Trade Credit Lender&rdquo;) on a short-term basis pursuant to the ________ Post-Trade Financing Agreement (the
&ldquo;Trade Financing Agreement&rdquo;). The Trade Credit Lender is only required to extend Trade Credits to the Trust to the extent
such LTC or cash is actually available to the Trade Credit Lender. To the extent that Trade Credits are not available or become exhausted,
(1) there may be delays in the buying and selling of LTC related to cash creations and redemptions or the selling of LTC related to paying
the Sponsor&rsquo;s Fee and any other Trust expenses, to the extent applicable, (2) Trust assets may be in held the Trading Account for
a longer duration than if Trade Credits were available, and (3) the execution price associated with such trades may deviate significantly
from the Index price used to determine the net asset value of the Trust. To the extent that the execution price for purchases and sales
of LTC related to creations and redemptions and sales of LTC in connection with paying the Sponsor&rsquo;s Fee and any other Trust expenses
deviate significantly from the Index price used to determine the net asset value of the Trust, the Shareholders may be negatively impacted
because the added costs of such price deviations would be incurred by the Authorized Participants and may be passed onto the Shareholders
in the secondary market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust generally must repay
Trade Credits by 6:00 p.m. ET (the &ldquo;Settlement Deadline&rdquo;) on the calendar day immediately following the day the Trade Credit
was extended by the Trade Credit Lender to the Trust (or, if such day is not a business day, on the next business day). Pursuant to the
Trade Financing Agreement, the Trust has granted a security interest, lien on, and right of set-off against all of the Trust&rsquo;s right,
title and interest, in the Trust&rsquo;s Trading Account and Vault Account established pursuant to the Prime Broker Agreement and ________
Custody Agreement, in order to secure the repayment by the Trust of the Trade Credits and financing fees to the Trade Credit Lender. If
the Trust fails to repay the Trade Credits to the Trade Credit Lender on time and in full, the Trade Credit Lender can take control of
the Trust&rsquo;s assets held at the ________ Custodian or Prime Broker and liquidate them to repay the Trade Credit debt owed by the
Trust to the Trade Credit Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Loss of a critical banking
relationship for, or the failure of a bank used by, the Prime Broker could adversely impact the Trust&rsquo;s ability to create or redeem
Baskets, or could cause losses to the Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Broker may be used
to facilitate the buying and selling or settlement of LTC by the Trust in connection with cash creations and redemptions between the Trust
and the Authorized Participants and the sale of LTC to pay Trust expenses not assumed by the Sponsor. The Prime Broker relies on bank
accounts to provide its trading platform services and including temporarily holding any cash related to a customer&rsquo;s purchase or
sale of LTC. In particular, the Prime Broker has disclosed that customer cash held by the Prime Broker, including the cash associated
with the Trust&rsquo;s Trading Account, is held in one or more banks&rsquo; accounts for the benefit of the Prime Broker&rsquo;s customers,
or in money market funds in compliance with Rule 2a-7 under the Investment Company Act of 1940 and rated &ldquo;AAA&rdquo; by S&amp;P
(or the equivalent from any eligible rating service), provided that such investments are held in accounts in ________&rsquo;s name for
the benefit of customers and are permitted and held in accordance with state money-transmitter laws (&ldquo;Money Market Funds&rdquo;).
The Prime Broker has represented to the Sponsor that it has implemented the following policy with respect to the cash associated with
the Trust&rsquo;s Trading Account. First, any cash related to the Trust&rsquo;s purchase or sale of LTC will be held in an omnibus account
in the Prime Broker&rsquo;s name for the benefit of (&ldquo;FBO&rdquo;) its customers at each of multiple FDIC-insured banks (an &ldquo;FBO
Account&rdquo;), or in a Money Market Fund. The amount of Trust cash held at each FBO Account shall be in an amount at each bank that
is the lower of (i) the FDIC insurance limit for deposit insurance and (ii) any bank-specific limit set by the Prime Broker for the applicable
bank. Deposit insurance does not apply to cash held in a Money Market Fund. The Prime Broker has agreed to title the accounts in a manner
designed to enable receipt of FDIC deposit insurance where applicable on a pass-through basis, but does not guarantee that pass-through
insurance will apply since such insurance is dependent on the compliance of the bank. Second, to the extent the Trust&rsquo;s cash in
the Trading Account in aggregate exceeds the amounts that can be maintained at the banks on the foregoing basis, the Prime Broker has
represented that it currently conducts an overnight sweep of the excess into U.S. government money market funds. The Sponsor has not independently
verified the Prime Broker&rsquo;s representations. To the extent that the Prime Broker faces difficulty establishing or maintaining banking
relationships, the loss of the Prime Broker&rsquo;s banking partners or the imposition of operational restrictions by these banking partners
and the inability of the Prime Broker to utilize other financial institutions may result in a disruption of creation and redemption activity
of the Trust, or cause other operational disruptions or adverse effects for the Trust. In the future, it is possible that the Prime Broker
could be unable to establish accounts with new banking partners or establish new banking relationships, or that the banks with which the
Prime Broker is able to establish relationships may not be as large or well-capitalized or subject to the same degree of prudential supervision
as the existing providers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 45; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->40<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust could also suffer
losses in the event that a bank in which the Prime Broker holds customer cash, including the cash associated with the Trust&rsquo;s Trading
Account (which is used by the Prime Broker to move cash flows associated with the Trust&rsquo;s orders to sell LTC in connection with
payment of Trust expenses not assumed by the Sponsor), fails, becomes insolvent, enters receivership, is taken over by regulators, enters
financial distress, or otherwise suffers adverse effects to its financial condition or operational status. Recently, some banks have experienced
financial distress. For example, on March 8, 2023, the California Department of Financial Protection and Innovation (&ldquo;DFPI&rdquo;)
announced that Silvergate Bank had entered voluntary liquidation, and on March 10, 2023, Silicon Valley Bank, (&ldquo;SVB&rdquo;), was
closed by the DFPI, which appointed the FDIC, as receiver. Similarly, on March 12, 2023, the New York Department of Financial Services
took possession of Signature Bank and appointed the FDIC as receiver. A joint statement by the Department of the Treasury, the Federal
Reserve and the FDIC on March 12, 2023, stated that depositors in Signature and SVB will have access to all of their funds, including
funds held in deposit accounts, in excess of the insured amount. On May 1, 2023, First Republic Bank was closed by the California Department
of Financial Protection and Innovation, which appointed the FDIC as receiver. Following a bidding process, the FDIC entered into a purchase
and assumption agreement with JPMorgan Chase Bank, National Association, to acquire the substantial majority of the assets and assume
certain liabilities of First Republic Bank from the FDIC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Broker has historically
maintained banking relationships with Silvergate Bank and Signature Bank. While the Sponsor does not believe there is a direct risk to
the Trust&rsquo;s assets from the failures of Silvergate Bank or Signature Bank, in the future, changing circumstances and market conditions,
some of which may be beyond the Trust&rsquo;s or the Sponsor&rsquo;s control, could impair the Trust&rsquo;s ability to access any of
the Trust&rsquo;s cash held with the Prime Broker in the Trust&rsquo;s Trading Account or associated with the Trust&rsquo;s orders to
sell LTC in connection with payment of Trust expenses not assumed by the Sponsor. If the Prime Broker were to experience financial distress
or its financial condition is otherwise affected by the failure of its banking partners, the Prime Broker&rsquo;s ability to provide services
to the Trust could be affected. Moreover, the future failure of a bank at which the Prime Broker maintains customer cash, in the Trust&rsquo;s
Trading Account associated with the Trust&rsquo;s orders to sell LTC in connection with payment of Trust expenses not assumed by the Sponsor,
could result in losses to the Trust, to the extent the balances are not subject to deposit insurance, notwithstanding the regulatory requirements
to which the Prime Broker is subject or other potential protections. Although the Prime Broker has made certain representations to the
Sponsor regarding the Prime Broker&rsquo;s maintenance of records in a manner reasonably designed to qualify for FDIC insurance on a pass-through
basis in connection with the accounts in which the Prime Broker maintains cash on behalf of its customers (including the Trust), there
can be no assurance that such pass-through insurance will ultimately be made available. In addition, the Trust may maintain cash balances
with the Prime Broker that are not insured or are in excess of the FDIC&rsquo;s insurance limits, or which are maintained by the Prime
Broker at Money Market Funds and subject to the attendant risks (e.g., &ldquo;breaking the buck&rdquo;). As a result, the Trust could
suffer losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>LTC held by the Trust
are not subject to FDIC or SIPC protections.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is not a banking
institution or otherwise a member of the Federal Deposit Insurance Corporation (&ldquo;FDIC&rdquo;) or Securities Investor Protection
Corporation (&ldquo;SIPC&rdquo;) and, therefore, deposits held with or assets held by the Trust are not subject to the protections enjoyed
by depositors with FDIC or SIPC member institutions. The undivided interests in the Trust&rsquo;s LTC represented by Shares in the Trust
are not insured directly by the Trustee or the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Custodians&rsquo;
limited liability under the Custody Agreements may impair the ability of the Trust to recover losses relating to its LTC and any recovery
may be limited, even in the event of fraud, to the market value of the LTC at the time the fraud is discovered.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the ________ Custody
Agreement, the ________ Custodian&rsquo;s liability is limited to the greater of (i) the market value of the Vault Account at the time
the events giving rise to the liability occurred and (ii) the fair market value of the Vault Account at the time that the Custodian notifies
the Sponsor or Trustee in writing, or the Sponsor or the Trustee otherwise has actual knowledge of the events giving rise to the liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, the ________
Custodian will not be liable for any delay in performance or any non-performance of any of its custodial obligations under the Trust Agreement
or any Authorized Participant Agreement by reason of any cause beyond its reasonable control, including acts of God, war or terrorism.
The ________ Custodian will also not be liable for any system failure or third-party penetration of the LTC Account, unless such system
failure or third-party penetration is the result of gross negligence, bad faith or willful misconduct on the part of the Custodian. As
a result, the recourse of the Trust or the Shareholder, under New York law, is limited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the ________ Custody
Agreement, ________ and its affiliates, including their officers, directors, agents, and employees, are not liable for any lost profits,
special, incidental, indirect, intangible, or consequential damages resulting from authorized or unauthorized use of the Trust or Sponsor&rsquo;s
site or services. This includes damages arising from any contract, tort, negligence, strict liability, or other legal grounds, even if
________ was previously advised of, knew, or should have known about the possibility of such damages. However, this exclusion of liability
does not extend to cases of ________&rsquo;s fraud, willful misconduct, or gross negligence. In situations of gross negligence, ________&rsquo;s
liability is specifically limited to the value of the digital assets or fiat currency that were affected by the negligence. Additionally,
the total liability of ________ for direct damages is capped at the fees paid or payable to them under the relevant agreement during the
three-month period immediately preceding the first incident that caused the liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 46; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->41<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, ________ shall
not be liable for delays, suspension of operations, whether temporary or permanent, failure in performance, or interruption of service
which results directly or indirectly from any cause or condition beyond the reasonable control of ________, including, but not limited
to, any delay or failure due to an act of God, natural disasters, act of civil or military authorities, act of terrorists, including,
but not limited to, cyber-related terrorist acts, hacking, government restrictions, exchange or market rulings, civil disturbance, war,
strike or other labor dispute, fire, interruption in telecommunications or Internet services or network provider services, failure of
equipment and/or software, other catastrophe or any other occurrence which is beyond the reasonable control of ________.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the ________ Custody
Agreement, ________&rsquo;s (or its affiliates&rsquo;) liability to the Trust in the case of Theft is limited to the greater of (i) the
service fees paid or payable by the Trust to ________ under the ________ Custody Agreement during the 24-month period immediately preceding
the Theft, or (ii) the actual amount received by ________ under its insurance policies maintained, if any, for the Theft, or related to
such claim, which shall be prorated across all clients impacted by such Theft. Other than in the case of Theft, ________ (or its affiliates)
shall not be liable to the Trust (whether arising in contract, tort (including negligence), breach of statutory duty or otherwise) for
any sum which would result in ________&rsquo;s (or its affiliates&rsquo;) total liability under the ________ Custody Agreement to exceed
the service fees paid or payable by the Trust to ________ under the ________ Custody Agreement during the 12-month period immediately
preceding the event giving rise to liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, ________ shall
not be liable for any losses or for its failure to comply with its obligations under the ________ Custody Agreement if such losses or
failure is caused by, or is directly or indirectly due to circumstances beyond ________&rsquo;s reasonable control (including industrial
action or strike action; currency restrictions; suspension or disruption of the normal procedures and practices of, or disruption of the
infrastructure of, any settlement provider, clearing house, distributed ledger technology network, securities market or exchange; acts,
omissions or insolvency of a third party; failure of a material utility supply; war damage; terrorist action; the act of any governmental
agency or other competent authority; riot; pandemic or epidemic; fire; or flood lock-out); provided, that ________ shall: (i) notify the
Trust in a timely manner of the occurrence of a perceived force majeure event and its anticipated duration and impact; and (ii) use reasonable
efforts to minimize the effects of the event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Trust may not have
adequate sources of recovery if its LTC are lost, stolen or destroyed.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Trust&rsquo;s LTC are
lost, stolen or destroyed under circumstances rendering a party liable to the Trust, the responsible party may not have the financial
resources sufficient to satisfy the Trust&rsquo;s claim. For example, as to a particular event of loss, the only source of recovery for
the Trust might be limited to a Custodian or, to the extent identifiable, other responsible third parties (for example, a thief or terrorist),
any of which may not have the financial resources (including liability insurance coverage) to satisfy a valid claim of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>If a Custody Agreement
is terminated or a Custodian fails to provide services as required, the Sponsor may need to find and appoint a replacement custodian,
which could pose a challenge to the safekeeping of the Trust&rsquo;s LTC, and the Trust&rsquo;s ability to continue to operate may be
adversely affected. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is dependent on
the Custodians and the LTC Trading Counterparties to operate. The Custodians perform essential functions in terms of safekeeping the Trust&rsquo;s
LTC in the Vault Accounts. In addition, the LTC Trading Counterparties, including ________ Custodian&rsquo;s affiliate, ________, in its
capacity as Prime Broker, facilitate the buying and selling or settlement of LTC by the Trust in connection with cash creations and redemptions
between the Trust and the Authorized Participants, the selling or transfer of LTC to pay the Sponsor&rsquo;s Fee, any other Trust expenses,
to the extent applicable, and in extraordinary circumstances, to liquidate the Trust&rsquo;s LTC. If the Custodians or LTC Trading Counterparties,
including Prime Broker fails to perform the functions they perform for the Trust, the Trust may be unable to operate or create or redeem
Creation Units, which could force the Trust to liquidate or adversely affect the price of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 47; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On March 22, 2023, ________
and the ________ Custodian&rsquo;s parent company, ________ (together, the &ldquo;Relevant ________ Entities&rdquo;) received a &ldquo;Wells
Notice&rdquo; from the SEC staff stating that the SEC staff made a &ldquo;preliminary determination&rdquo; to recommend that the SEC file
an enforcement action against the Relevant ________ Entities alleging violations of the federal securities laws, including the Exchange
Act and the Securities Act. According to ________&rsquo;s public reporting company disclosure, based on discussions with the SEC staff,
the Relevant ________ Entities believe these potential enforcement actions would relate to aspects of the Relevant ________ Entities&rsquo;
________ Prime service, spot market, staking service ________ Earn, and ________ Wallet and the potential civil action may seek injunctive
relief, disgorgement, and civil penalties. On June 6, 2023, the SEC filed a complaint against the Relevant ________ Entities in federal
district court in the Southern District of New York, alleging, inter alia: (i) that ________ has violated the Exchange Act by failing
to register with the SEC as a national securities exchange, broker-dealer, and clearing agency, in connection with activities involving
certain identified digital assets that the SEC&rsquo;s complaint alleges are securities, (ii) that ________ has violated the Securities
Act by failing to register with the SEC the offer and sale of its staking program, and (iii) that ________ is jointly and severally liable
as a control person under the Exchange Act for ________&rsquo;s violations of the Exchange Act to the same extent as ________. The SEC&rsquo;s
complaint against the Relevant ________ Entities does not allege that LTC is a security nor does it allege that ________&rsquo;s activities
involving LTC caused the alleged registration violations, and the ________ Custodian was not named as a defendant. The SEC&rsquo;s complaint
seeks a permanent injunction against the Relevant ________ Entities to prevent them from violations of the Exchange Act or Securities
Act, disgorgement, civil monetary penalties, and such other relief as the court deems appropriate or necessary. ________ could be required,
as a result of a judicial determination, or could choose, to restrict or curtail the services it offers, or its financial condition and
ability to provide services to the Trust could be affected. If ________ were to be required or choose as a result of a regulatory action
(including, for example, the litigation initiated by the SEC), to restrict or curtail the services it offers, it could negatively affect
the Trust&rsquo;s ability to operate or process creations or redemptions of Baskets, which could force the Trust to liquidate or adversely
affect the price of the Shares. While the ________ Custodian is not named in the complaint, if ________, as the parent of the ________
Custodian, is required, as a result of a judicial determination, or could choose, to restrict or curtail the services its subsidiaries
provide to the Trust, or its financial condition is negatively affected, it could negatively affect the Trust&rsquo;s ability to operate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Alternatively, the Sponsor
could decide to replace one of the Custodians as a Custodian with custody of the Trust&rsquo;s LTC, pursuant to the Custody Agreements.
Similarly, the Custodians or Prime Broker could terminate their applicable agreements. The ________ Custodian or ________ could terminate
services under the ________ Custody Agreement or the Prime Broker Agreement, respectively, upon providing the applicable notice to the
Trust for any reason, or immediately for Cause (a &ldquo;Termination for Cause&rdquo; is defined in the ________ Custody Agreement as
(i) the Trust materially breaching any provision of the ________ Custody Agreement; (ii) the Trust becomes bankrupt or insolvent; or (iii)
the Trust fails to pay and settle in full its obligations to the ________ Custodian&rsquo;s affiliate, the Trade Credit Lender (as defined
below), which may, from time to time, provide financing to the Trust in the form of Trade Credits). In addition, ________ may terminate
the ________ Custody Agreement for any reason upon providing at least thirty (30) days&rsquo; written notice to the Trust and to the Sponsor,
or immediately if ________ perceives a risk of legal or regulatory non-compliance associated with the Trust&rsquo;s custodial account
activity, among others. ________ may terminate the ________ Custody Agreement for any reason upon providing at least three (3) months&rsquo;
written notice to the Trust, or immediately upon written notice to the Trust if: (i) ________ determines, in its sole discretion, that
continued provision of the custody services would result in violation of applicable law or regulation relating to either ________ or the
Trust and the parties are unable to amend the relevant provisions of the ________ Custody Agreement, (ii) a force majeure event, as defined
in the ________ Custody Agreement, continues for at least forty-five (45) days, or (iii) the Trust does not utilize the custody services
set forth in the ________ Custody Agreement for a period of twelve (12) months from the effective date of the ________ Custody Agreement.
Transferring maintenance responsibilities of a Vault Account at a Custodian to another custodian will likely be complex and could subject
the Trust&rsquo;s LTC to the risk of loss during the transfer, which could have a negative impact on the performance of the Shares or
result in loss of the Trust&rsquo;s assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As Prime Broker, ________
does not guarantee uninterrupted access to the Trading Platform or the services it provides to the Trust as Prime Broker. Under certain
circumstances, ________ is permitted to halt or suspend trading on its trading platform, or impose limits on the amount or size of, or
reject, the Trust&rsquo;s orders, including in the event of, among others, (a) delays, suspension of operations, failure in performance,
or interruption of service that are directly due to a cause or condition beyond the reasonable control of ________, (b) the Trust has
engaged in unlawful or abusive activities or fraud, (c) the acceptance of the Trust&rsquo;s order would cause the amount of Trade Credits
extended to exceed the maximum amount of Trade Credit (as defined below) that the Trust&rsquo;s agreement with the Trade Credit Lender
permits to be outstanding at any one time, or (d) a security or technology issue occurred and is continuing that results in ________ being
unable to provide trading services or accept the Trust&rsquo;s order, in each case, subject to certain protections for the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Also, if a Custodian or ________
becomes insolvent, suffers business failure, ceases business operations, defaults on or fails to perform their obligations under their
contractual agreements with the Trust, or abruptly discontinues the services they provide to the Trust for any reason, the Trust&rsquo;s
operations would be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may not be able
to find a party willing to serve as the custodian of the Trust&rsquo;s LTC or as the Trust&rsquo;s broker under the same terms as the
current Custody Agreements or Prime Broker Agreement or at all. To the extent that the Sponsor is not able to find a suitable party willing
to serve as the custodian or prime broker, the Sponsor may be required to terminate the Trust and liquidate the Trust&rsquo;s LTC. In
addition, to the extent that the Sponsor finds a suitable party but must enter into a modified custody agreement or prime broker agreement
that is less favorable for the Trust, the value of the Shares could be adversely affected. If the Trust is unable to find a replacement
prime broker, its operations could be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 48; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->43<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Sponsor may need
to find and appoint a replacement custodian quickly, which could pose a challenge to the safekeeping of the Trust&rsquo;s LTC. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor could decide to
replace one or both of the Custodians as the custodian of the Trust&rsquo;s LTC. Transferring maintenance responsibilities of the Trust&rsquo;s
account with a Custodian to another party will likely be complex and could subject the Trust&rsquo;s LTC to the risk of loss during the
transfer, which could have a negative impact on the performance of the Shares or result in loss of the Trust&rsquo;s assets. The Sponsor
may not be able to find a party willing to serve as the custodian under the same terms as the current Custody Agreements. To the extent
that the Sponsor is not able to find a suitable party willing to serve as the custodian, the Sponsor may be required to terminate the
Trust and liquidate the Trust&rsquo;s LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Custodians and Cash
Custodian could become insolvent. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Custodians or Cash
Custodian becomes insolvent or subject to a receivership or bankruptcy proceeding, the Trust&rsquo;s operations may be adversely affected,
and there is a risk that the insolvency, receivership or bankruptcy of a Custodian may result in the loss of all or a substantial portion
of the Trust&rsquo;s assets or in a significant delay in the Trust having access to those assets. The Trust&rsquo;s assets will be held
in one or more accounts maintained for the Trust by the Custodians. Further, the Custodians have agreed to hold Trust assets for the benefit
of the Trust as the entitlement holder, and while the Trust assets will be commingled with assets of the Custodians&rsquo; other customers
in an omnibus account, such assets will not be commingled with either Custodian&rsquo;s proprietary assets. While other types of assets
held in a similarly segregated manner have been deemed not to be part of the custodian&rsquo;s bankruptcy estate under various regulatory
regimes, bankruptcy courts have not yet fully addressed the appropriate treatment of custodial holdings of digital assets and any such
determination may be highly fact-specific.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Given that the contractual
protections and legal rights of customers with respect to digital assets held on their behalf by third parties are relatively untested
in a bankruptcy or receivership proceeding of an entity such as either Custodian, in the event of an insolvency, receivership or bankruptcy
proceeding with respect to a Custodian, there is a risk that the Trust&rsquo;s assets may be considered the property of the bankruptcy
estate of such Custodian, and that customers of such Custodian &ndash; including the Trust &ndash; may be at risk of being treated as
general unsecured creditors of such Custodian and subject to the risk of total loss or markdowns on value of such assets. Moreover, even
if the Trust&rsquo;s assets ultimately are not treated as part of a Custodian&rsquo;s bankruptcy estate, the automatic stay could apply
until the bankruptcy court made such a determination, and the limited precedent and fact-dependent nature of the determination could delay
or preclude the return of such assets to the Trust. Further, the bankruptcy court may permit a Custodian to retain possession or custody
of its customers&rsquo; assets until any claims the estate may have against the customers (including the Trust) are resolved.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An actual or perceived business
failure or interruption, default, failure to perform security breach or other problems affecting a Custodian, Cash Custodian or LTC Trading
Counterparties could harm the Trust&rsquo;s operations, result in partial or total loss of the Trust&rsquo;s assets, damage the Trust&rsquo;s
reputation and negatively affect the market perception of the effectiveness of the Trust, all of which could in turn reduce demand for
the Shares, resulting in a reduction in the price of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The liquidity of the
Shares may be affected if Authorized Participants cease to perform their obligations under the Authorized Participant Agreements.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event that one or more
Authorized Participants having substantial interests in Shares or otherwise responsible for a significant portion of the Shares&rsquo;
daily trading volume on Nasdaq terminates its Authorized Participant Agreement, the liquidity of the Shares would likely decrease, which
could adversely affect the market price of, and an investment in, the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>There is no guarantee
that an active trading market for the Shares will continue to develop.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There can be no assurance
an active trading market of the Shares will develop on Nasdaq. The Sponsor may elect to terminate the Trust if it determines, at its sole
discretion, that the Trust is not an economically viable size, i.e., if the Trust fails to raise sufficient revenue to cover the costs
associated with launching and maintaining the Trust, which could result in the liquidation of the Trust&rsquo;s LTC at a time that is
disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent that Nasdaq
halts trading in the Shares, whether on a temporary or permanent basis, investors may not be able to buy or sell Shares, thus adversely
affecting an investment in the Shares. If an active trading market for the Shares does not exist or continue to exist, the market prices
and liquidity of the Shares may be adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 49; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Trust may be required
to terminate and liquidate at a time that is disadvantageous to Shareholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Trust is required to
terminate and liquidate, such termination and liquidation could occur at a time that is disadvantageous to Shareholders, such as when
the LTC Index Price is lower than it was at the time when Shareholders purchased their Shares. In such a case, when the Trust&rsquo;s
LTC are sold as part of the Trust&rsquo;s liquidation, the resulting proceeds distributed to Shareholders will be less than if the LTC
Index Price were higher at the time of sale. See &ldquo;Description of the Trust Agreement&mdash;The Trustee&mdash;Termination of the
Trust&rdquo; for more information about the termination of the Trust, including when the termination of the Trust may be triggered by
events outside the direct control of the Sponsor, the Trustee or the Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Trust Agreement
includes a provision that restricts the right of a beneficial owner of a statutory trust from bringing a derivative action.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under Delaware law, the right
of a beneficial owner of a statutory trust (such as a Shareholder of the Trust) to bring a derivative action (i.e., to initiate a lawsuit
in the name of a the statutory trust in order to assert a claim belonging to the statutory trust against a fiduciary of the statutory
trust or against a third party when the statutory trust&rsquo;s management has refused to do so) may be restricted by the terms of the
governing instrument of the statutory trust. The Trust Agreement provides that in addition to any other requirements of applicable law,
no Shareholder shall have the right, power or authority to bring or maintain a derivative action, suit or other proceeding on behalf of
the Trust unless two or more Shareholders who (i) are not affiliates of one another and (ii) collectively hold at least 10% of the outstanding
Shares join in the bringing or maintaining of such action, suit or other proceeding. Therefore, the Trust Agreement limits the likelihood
that a Shareholder could successfully assert a derivative action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Administrator is
solely responsible for determining the value of the LTC, and any errors, discontinuance or changes in such valuation calculations may
have an adverse effect on the value of the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Administrator will determine
the Trust&rsquo;s LTC Holdings and LTC Holdings per Share on a daily basis as soon as practicable after 4:00 p.m. ET on each business
day. The Administrator&rsquo;s determination is made utilizing data from the Custodians&rsquo; operations and the LTC Index Price, calculated
at 4:00 p.m. ET on such day. To the extent that the Trust&rsquo;s LTC Holdings or LTC Holdings per Share are incorrectly calculated, the
Administrator may not be liable for any error and such misreporting of valuation data could adversely affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Extraordinary expenses
resulting from unanticipated events may become payable by the Trust, adversely affecting an investment in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In consideration for the Sponsor&rsquo;s
Fee, the Sponsor has contractually assumed the Sponsor-assumed Fees, which are certain operational and periodic expenses of the Trust.
See &ldquo;Activities of the Trust&mdash;Trust Expenses.&rdquo; Extraordinary expenses of the Trust (for example, expenses relating to
litigation) are not assumed by the Sponsor and are instead borne by the Trust and paid through the sale of the Trust&rsquo;s LTC. Because
the Trust does not generate any income, every time that it delivers LTC to the Sponsor for the Sponsor&rsquo;s Fee or sells LTC for the
Additional Trust Expenses, the number of LTC represented by each Share will gradually decrease over time. In addition, the Sponsor may,
at its sole discretion, increase the Sponsor&rsquo;s Fee or decrease the Sponsor-paid Expenses which could result in a greater decline
in the number of LTC that the Trust holds. Such an increase in the Sponsor&rsquo;s Fee or decrease in the Sponsor-paid Expenses could
occur if the expenses of the Trust materially increase. Alternatively, the Sponsor could choose to decrease the Sponsor&rsquo;s Fee in
response to competitive pressures from other digital currency financial vehicles similar to the Trust. The Sponsor will balance such competitive
pressures and the costs that it incurs in acting as Sponsor for the Trust when determining the Sponsor&rsquo;s Fee. The Sponsor has no
current intention of increasing or decreasing the Sponsor&rsquo;s Fee or modifying the terms of the Trust Agreement related to Sponsor-paid
Expenses, and there are no specific circumstances under which the Sponsor has determined it would do so.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Trust&rsquo;s delivery
or sale of LTC to pay expenses or other operations of the Trust could result in Shareholders incurring tax liability without an associated
distribution from the Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Assuming that the Trust is
treated as a grantor trust for U.S. federal income tax purposes, each delivery of LTC by the Trust to pay the Sponsor&rsquo;s Fee or other
expenses and each sale of LTC by the Trust to pay Additional Trust Expenses will be a taxable event to Shareholders. Thus, the Trust&rsquo;s
payment of expenses could result in Shareholders&rsquo; incurring tax liability without an associated distribution from the Trust. Any
such tax liability could adversely affect an investment in the Shares. See &ldquo;U.S. Federal Income Tax Consequences.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>If the Trust incurs
extraordinary expenses in U.S. dollars, the Trust will sell LTC to pay these expenses. The sale of the Trust&rsquo;s LTC to pay expenses
at a time of low LTC prices could adversely affect the value of the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor will sell LTC
held by the Trust to pay Trust expenses not assumed by the Sponsor on an as-needed basis, irrespective of then-current LTC prices on the
LTC Exchange Market. The Trust is not actively managed and no attempt will be made to protect against or to take advantage of fluctuations
in the price of LTC. Consequently, if the Trust incurs expenses in U.S. dollars, the Trust&rsquo;s LTC may be sold at a time when the
LTC prices on the LTC Exchange Market are low, resulting in a negative impact on the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 50; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->45<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The value of the Shares
will be adversely affected if the Trust is required to indemnify the Sponsor, the Trustee, the Transfer Agent, the Administrator or the
Custodians under the Trust Documents.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust Documents,
each of the Sponsor, the Trustee, the Transfer Agent, the Administrator, the Custodians and Prime Broker has a right to be indemnified
by the Trust for certain liabilities or expenses that it incurs without gross negligence, bad faith or willful misconduct on its part.
Therefore, the Sponsor, Trustee, Transfer Agent, the Administrator, Custodians or Prime Broker may require that the assets of the Trust
be sold in order to cover losses or liability suffered by it. Any sale of that kind would reduce the Trust&rsquo;s LTC Holdings and the
value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Intellectual property
rights claims may adversely affect the Trust and an investment in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is not aware of
any intellectual property rights claims that may prevent the Trust from operating and holding LTC; however, third parties may assert intellectual
property rights claims relating to the operation of the Trust and the mechanics instituted for the investment in, holding of and transfer
of LTC. Regardless of the merit of an intellectual property or other legal action, any legal expenses to defend or payments to settle
such claims would be Additional Trust Expenses and be borne by the Trust through the sale of the Trust&rsquo;s LTC. Additionally, a meritorious
intellectual property rights claim could prevent the Trust from operating and force the Sponsor to terminate the Trust and liquidate the
Trust&rsquo;s LTC. As a result, an intellectual property rights claim against the Trust could adversely affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>Risk Factors
Related to the Regulation of the Trust and the Shares</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">A
determination that LTC or any other digital asset is a &ldquo;security&rdquo; may adversely affect the value of LTC and the value of the
Shares, and result in potentially extraordinary, nonrecurring expenses to, or termination of, the Trust.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">Depending
on its characteristics, a digital asset may be considered a &ldquo;security&rdquo; under the federal securities laws. The test for determining
whether a particular digital asset is a &ldquo;security&rdquo; is complex and difficult to apply, and the outcome is difficult to predict.
Public, though non-binding, statements by senior officials at the SEC have indicated that the SEC did not consider bitcoin or ether to
be securities, and does not currently consider bitcoin to be a security. In addition, the SEC, by action through delegated authority approving
the exchange rule filings to list shares of trusts holding Ether as a commodity-based exchange traded products, has implicitly </FONT>taken
the view that Ether is a commodity that is not a security. The SEC staff has also provided informal assurances via no-action letter to
a handful of promoters that their digital assets are not securities. On the other hand, the SEC has brought enforcement actions against
the issuers and promoters of several other digital assets on the basis that the digital assets in question are securities. More recently,
the SEC has also brought enforcement actions against digital asset trading platforms for operating unregistered securities exchanges on
the basis that certain of the digital assets traded on their platforms are securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">For
example, in June 2023, the SEC brought the Binance Complaint and the Coinbase Complaint, alleging violations of a variety of securities
laws. In its complaints, the SEC asserted that SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, COTI, CHZ, FLOW, ICP, NEAR, VGX, DASH
and NEXO, are securities under the federal securities laws. DASH is a fork of LTC and thus shares certain similarities with LTC. In addition,
in November 2023, the SEC brought the Kraken Complaint, alleging that Kraken operated as an unregistered securities exchange, brokerage
and clearing agency. In July 2024, the SEC amended the Binance Complaint to remove its claims asserting that SOL, ADA, MATIC, FIL, ATOM,
SAND, MANA, ALGO, AXS and COTI are securities under the federal securities laws. However, there can be no guarantee that the SEC will
not bring similar claims involving these or other digital assets in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Whether
a digital asset is a security under the federal securities laws depends on whether it is included in the lists of instruments making up
the definition of &ldquo;security&rdquo; in the Securities Act, the Exchange Act and the Investment Company Act. Digital assets as such
do not appear in any of these lists, although each list includes the terms &ldquo;investment contract&rdquo; and &ldquo;note,&rdquo; and
the SEC has typically analyzed whether a particular digital asset is a security by reference to whether it meets the tests developed by
the federal courts interpreting these terms, known as the <I>Howey</I> and <I>Reves</I> tests, respectively. For many digital assets,
whether or not the <I>Howey</I> or <I>Reves</I> tests are met is difficult to resolve definitively, and substantial legal arguments can
often be made both in favor of and against a particular digital asset qualifying as a security under one or both of the <I>Howey</I> and
<I>Reves</I> tests. Adding to the complexity, the SEC staff has indicated that the security status of a particular digital asset can change
over time as the relevant facts evolve, though recent arguments advanced in ongoing litigation may suggest that the SEC no longer believes
the status of a digital asset can change over time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

<!-- Field: Page; Sequence: 51; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->46<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
part of determining whether LTC is a security for purposes of the federal securities laws, the Sponsor takes into account a number of
factors, including the various definitions of &ldquo;security&rdquo; under the federal securities laws and federal court decisions interpreting
elements of these definitions, such as the U.S. Supreme Court&rsquo;s decisions in the <I>Howey</I> and <I>Reves</I> cases and their progeny,
as well as reports, orders, press releases, public statements and speeches by the SEC, its commissioners and its staff providing guidance
on when a digital asset may be a security for purposes of the federal securities laws. Finally, the Sponsor discusses the security status
of LTC with external counsel, and has received a memorandum regarding the status of LTC under the federal securities laws from external
counsel and has discussed the status of LTC with external counsel and continues to believe that LTC is not a security. Through this process
the Sponsor believes that it is applying the proper legal standards in determining that LTC is not a security in light of the uncertainties
inherent in the <I>Howey</I> and <I>Reves</I> tests. The Sponsor has been contacted by staff from the SEC&rsquo;s Divisions of Corporation
Finance and Enforcement concerning the Sponsor&rsquo;s securities law analysis of LTC and has responded to the SEC staff.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
light of these uncertainties and the fact-based nature of the analysis, the Sponsor acknowledges that the SEC may take a contrary position;
and the Sponsor&rsquo;s conclusion, even if reasonable under the circumstances, would not preclude legal or regulatory action based on
the presence of a security.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
is the case with LTC, analyses from counsel typically review the often-complex facts surrounding a particular digital asset&rsquo;s underlying
technology, creation, use case and usage, development, distribution and secondary-market trading characteristics as well as contributions
and of marketing or promotional efforts by the individuals or organizations who appear to be involved in these activities, among other
relevant facts, usually drawing on publicly available information. This information, usually found on the internet, often includes both
information that originated with or is attributed to such individuals or organizations, as well as information from third-party sources
and databases that may or may not have a connection to such individuals or organizations, and the availability and nature of such information
can change over time. The Sponsor and counsel often have no independent means of verifying the accuracy or completeness of such information,
and therefore of necessity usually must assume that such information is materially accurate and complete for purposes of the <I>Howey</I>
and <I>Reves</I> analyses. After having gathered this information, counsel typically analyzes it in light of the <I>Howey</I> and <I>Reves</I>
tests, in order to inform a judgment as to whether or not a federal court would conclude that the digital asset in question is or is not
a security for purposes of the federal securities laws. Often, certain factors appear to support a conclusion that the digital asset in
question is a security, while other factors appear to support the opposite conclusion, and in such a case counsel endeavors to weigh the
importance and relevance of the competing factors. This analytical process is further complicated by the fact that, at present, federal
judicial case law applying the relevant tests to digital assets is limited and in some situations inconsistent, with no federal appellate
court having considered the question on the merits, as well as the fact that because each digital asset presents its own unique set of
relevant facts, it is not always possible to directly analogize the analysis of one digital asset to another. Because of this factual
complexity and the current lack of a well-developed body of federal case law applying the relevant tests to a variety of different fact
patterns, the Sponsor has not in the past received, and currently does not expect that it would be able to receive, &ldquo;opinions&rdquo;
of counsel stating that a particular digital asset is or is not a security for federal securities law purposes. The Sponsor understands
that as a matter of practice, counsel is generally able to render a legal &ldquo;opinion&rdquo; only when the relevant facts are substantially
ascertainable and the applicable law is both well-developed and settled. As a result, given the relative novelty of digital assets, the
challenges inherent in fact-gathering for particular digital assets, and the fact that federal courts have only recently been tasked with
adjudicating the applicability of federal securities law to digital assets, the Sponsor understands that at present counsel is generally
not in a position to render a legal &ldquo;opinion&rdquo; on the securities-law status of LTC or any other particular digital asset.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
such, notwithstanding the Sponsor&rsquo;s receipt of a memorandum regarding the status of LTC under the federal securities laws from external
counsel and the Sponsor&rsquo;s view that LTC is not a security, the SEC or a federal court may in the future take a different view as
to the security status of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">If
the Sponsor determines that LTC is a security under the federal securities laws, whether that determination is initially made by the Sponsor
itself, or because a federal court upholds an allegation that LTC is a security, the Sponsor does not intend to permit the Trust to continue
holding LTC in a way that would violate the federal securities laws (and therefore would either dissolve the Trust or potentially seek
to operate the Trust in a manner that complies with the federal securities laws, including the Investment Company Act). Because the legal
tests for determining whether a digital asset is or is not a security often leave room for interpretation, for so long as the Sponsor
believes there to be good faith grounds to conclude that the Trust&rsquo;s LTC is not a security, the Sponsor does not intend to dissolve
the Trust on the basis that LTC could at some future point be finally determined to be a security.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Any
enforcement action by the SEC or a state securities regulator asserting that LTC is a security, or a court decision to that effect, would
be expected to have an immediate material adverse impact on the trading value of LTC, as well as the Shares. This is because the business
models behind most digital assets are incompatible with regulations applying to transactions in securities. If a digital asset is determined
to be a security, it is likely to become difficult or impossible for the digital asset to be traded, cleared or custodied in the United
States through the same channels used by non-security digital assets, which in addition to materially and adversely affecting the trading
value of the digital asset is likely to significantly impact its liquidity and market participants&rsquo; ability to convert the digital
asset into U.S. dollars. Any assertion that a digital asset is a security by the SEC or another regulatory authority may have similar
effects. For example, in 2020 the SEC filed a complaint against the issuer of XRP, Ripple Labs, Inc., and two of its executives, alleging
that they raised more than $1.3 billion through XRP sales that should have been registered under the federal securities laws, but were
not. In the years prior to the SEC&rsquo;s action, XRP&rsquo;s market capitalization at times reached over $140 billion. However, in the
weeks following the SEC&rsquo;s complaint, XRP&rsquo;s market capitalization fell to less than $10 billion, which was less than half of
its market capitalization in the days prior to the complaint.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

<!-- Field: Page; Sequence: 52; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->47<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Likewise,
in the days following the announcement of the Binance Complaint and Coinbase Complaint, the price of various digital assets, including
bitcoin, ether and LTC, declined significantly and may continue to decline as these cases advance through the federal court system. Subsequently,
in July 2023, the District Court for the Southern District of New York held that while XRP is not a security, certain sales of XRP to
certain buyers (but not other types of sales to other buyers) amounted to &ldquo;investment contracts&rdquo; under the <I>Howey</I> test.
The District Court entered a final judgment in the case on August 7, 2024. On October 2, 2024, the SEC filed a notice of appeal with the
S.D.N.Y to appeal to the United States Court of Appeals for the Second Circuit from the final judgment entered by the S.D.N.Y. on August
7, 2024. Moreover, also in July 2023, another judge in the District Court for the Southern District of New York, in litigation between
the SEC and the issuer of the UST and LUNA digital assets, suggested that he disagreed with the approach underlying the XRP decision.
The Binance Complaint, the Coinbase Complaint, the Kraken Complaint, and the SEC&rsquo;s actions against XRP&rsquo;s issuer and the issuer
of the UST and LUNA digital assets, as well as seemingly inconsistent views of different district court judges, underscore the continuing
uncertainty around which digital assets are securities and what the correct analysis is to determine each digital asset&rsquo;s status.
For example, the conflicting district court opinions and analyses demonstrate that factors such as how long a digital asset has been in
existence, how widely held it is, how large its market capitalization is, the manner in which it is offered, sold or promoted, and whether
it has actual use in commercial transactions, ultimately may have limited to no bearing on whether the SEC, a state securities regulator
or any particular court will find it to be a security.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition, if LTC is in fact a security, the Trust could be considered an unregistered &ldquo;investment company&rdquo; under the Investment
Company Act, which could necessitate the Trust&rsquo;s liquidation. In this case, the Trust and the Sponsor may be deemed to have participated
in an illegal offering of investment company securities and there is no guarantee that the Sponsor will be able to register the Trust
under the Investment Company Act at such time or take such other actions as may be necessary to ensure the Trust&rsquo;s activities comply
with applicable law, which could force the Sponsor to liquidate the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Moreover,
whether or not the Sponsor or the Trust were subject to additional regulatory requirements as a result of any determination that the Trust&rsquo;s
assets include securities, the Sponsor may nevertheless decide to terminate the Trust, in order, if possible, to liquidate the Trust&rsquo;s
assets while a liquid market still exists. If the SEC or a federal court were to determine that LTC is a security, it is likely that the
value of the Shares of the Trust would decline significantly. Furthermore, if a federal court upholds an allegation that LTC is a security,
the Trust itself may be terminated and, if practical, its assets liquidated.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">Regulatory
changes or actions by the U.S. Congress or any U.S. federal or state agencies may affect the value of the Shares or restrict the use of
LTC, mining activity or the operation of the Litecoin Network or the digital asset markets in a manner that adversely affects the value
of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
digital assets have grown in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies (including
FinCEN, OFAC, SEC, CFTC, the Financial Industry Regulatory Authority (&ldquo;FINRA&rdquo;), the Consumer Financial Protection Bureau (&ldquo;CFPB&rdquo;),
the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation, the IRS, the Office of the Comptroller
of the Currency, the Federal Deposit Insurance Corporation, the Federal Reserve and state financial institution and securities regulators)
have been examining the operations of digital asset networks, digital asset users and the digital asset markets, with particular focus
on the extent to which digital assets can be used to launder the proceeds of illegal activities, evade sanctions or fund criminal or terrorist
enterprises and the safety and soundness of trading platforms and other service providers that hold or custody digital assets for users.
Many of these state and federal agencies have issued consumer advisories regarding the risks posed by digital assets to investors. President
Biden&rsquo;s March 9, 2022 Executive Order, asserting that technological advances and the rapid growth of the digital asset markets &ldquo;necessitate
an evaluation and alignment of the United States Government approach to digital assets,&rdquo; signals an ongoing focus on digital asset
policy and regulation in the United States. A number of reports issued pursuant to the Executive Order have focused on various risks related
to the digital asset ecosystem, and have recommended additional legislation and regulatory oversight. In addition, federal and state agencies,
and other countries and international bodies have issued rules or guidance about the treatment of digital asset transactions or requirements
for businesses engaged in digital asset activity. Moreover, the failure of FTX Trading Ltd. (&ldquo;FTX&rdquo;) in November 2022 and the
resulting market turmoil substantially increased regulatory scrutiny in the United States and globally and led to SEC and criminal investigations,
enforcement actions and other regulatory activity across the digital asset ecosystem.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

<!-- Field: Page; Sequence: 53; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->48<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition, the SEC, U.S. state securities regulators and several foreign governments have issued warnings and instituted legal proceedings
in which they argue that certain digital assets may be classified as securities and that both those digital assets and any related initial
coin offerings or other primary and secondary market transactions are subject to securities regulations. For example, in June 2023, the
SEC brought charges against Binance and Coinbase, and in November 2023, the SEC brought charges against Kraken, alleging that they operated
unregistered securities exchanges, brokerages and clearing agencies. In its complaints, the SEC asserted that several digital assets are
securities under the federal securities laws. The outcomes of these proceedings, as well as ongoing and future regulatory actions, have
had a material adverse effect on the digital asset industry as a whole and on the price of LTC, and may alter, perhaps to a materially
adverse extent, the nature of an investment in the Shares and/or the ability of the Trust to continue to operate. Additionally, U.S. state
and federal, and foreign regulators and legislatures have taken action against virtual currency businesses or enacted restrictive regimes
in response to adverse publicity arising from hacks, consumer harm, or criminal activity stemming from virtual currency activity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
August 2021, the chair of the SEC stated that he believed investors using digital asset trading platforms are not adequately protected,
and that activities on the platforms can implicate the securities laws, commodities laws and banking laws, raising a number of issues
related to protecting investors and consumers, guarding against illicit activity, and ensuring financial stability. The chair expressed
a need for the SEC to have additional authorities to prevent transactions, products, and platforms from &ldquo;falling between regulatory
cracks,&rdquo; as well as for more resources to protect investors in &ldquo;this growing and volatile sector.&rdquo; The chair called
for federal legislation centering on digital asset trading, lending, and decentralized finance platforms, seeking &ldquo;additional plenary
authority&rdquo; to write rules for digital asset trading and lending. However, the chair has subsequently stated that the SEC already
has explicit authority under existing laws to regulate the digital asset sector and several enforcement actions were filed against digital
asset trading platforms during the first half of 2023. In particular, in June 2023, the SEC brought enforcement actions against Binance
and Coinbase, two of the largest digital asset trading platforms, alleging that they operated unregistered securities exchanges, brokerages
and clearing agencies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
SEC has taken steps to interpret its existing authorities as covering various digital asset activities. For example, the SEC has recently
proposed amendments to the custody rules under Rule 406(4)-2 of the Investment Advisers Act. The proposed rule changes would amend the
definition of a &ldquo;qualified custodian&rdquo; under Rule 206(4)-2(d)(6) and expand the current custody rule under Rule 406(4)-2 to
cover digital assets and related advisory activities. If enacted as proposed, these rules would likely impose additional regulatory requirements
with respect to the custody and storage of digital assets and could lead to additional regulatory oversight of the digital asset ecosystem
more broadly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Various
foreign jurisdictions have, and may continue to, in the near future, adopt laws, regulations or directives that affect a digital asset
network, the digital asset markets, and their users, particularly digital asset trading platforms and service providers that fall within
such jurisdictions&rsquo; regulatory scope. For example:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">China has made transacting in cryptocurrencies
illegal for Chinese citizens in mainland China, and additional restrictions may follow. China has banned initial coin offerings and there
have been reports that Chinese regulators have taken action to shut down a number of China-based digital asset trading platforms.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">South Korea determined to amend its Financial
Information Act in March 2020 to require virtual asset service providers to register and comply with its AML and counter-terrorism funding
framework. These measures also provide the government with the authority to close digital asset trading platforms that do not comply with
specified processes. South Korea has also banned initial coin offerings.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                         </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The Reserve Bank of India in April 2018 banned
the entities it regulates from providing services to any individuals or business entities dealing with or settling digital assets. In
March 2020, this ban was overturned in the Indian Supreme Court, although the Reserve Bank of India is currently challenging this ruling.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                          </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The United Kingdom&rsquo;s Financial Conduct
Authority published final rules in October 2020 banning the sale of derivatives and exchange-traded notes that reference certain types
of digital assets, contending that they are &ldquo;ill-suited&rdquo; to retail investors citing extreme volatility, valuation challenges
and association with financial crime. A new law, the Financial Services and Markets Act 2023 (&ldquo;FSMA&rdquo;), received royal assent
in June 2023. The FSMA brings digital asset activities within the scope of existing laws governing financial institutions, markets and
assets.</FONT></TD></TR></TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<!-- Field: Page; Sequence: 54; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->49<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="margin: 0">&nbsp;</P>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The Parliament of the European Union approved
the text of the Markets in Crypto-Assets Regulation (&ldquo;MiCA&rdquo;) in April 2023, establishing a regulatory framework for digital
asset services across the European Union. MiCA is intended to serve as a comprehensive regulation of digital asset markets and imposes
various obligations on digital asset issuers and service providers. The main aims of MiCA are industry regulation, consumer protection,
prevention of market abuse and upholding the integrity of digital asset markets. MiCA was formally approved by the European Union&rsquo;s
member states in 2023. Certain parts of MiCA became effective as of June 2024 and the remainder will start to apply as of December 2024.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">There
remains significant uncertainty regarding foreign governments&rsquo; future actions with respect to the regulation of digital assets and
digital asset trading platforms. Such laws, regulations or directives may conflict with those of the United States and may negatively
impact the acceptance of LTC by users, merchants and service providers outside the United States and may therefore impede the growth or
sustainability of the Litecoin ecosystem in the United States and globally, or otherwise negatively affect the value of LTC held by the
Trust. The effect of any future regulatory change on the Trust or the LTC held by the Trust is impossible to predict, but such change
could be substantial and adverse to the Trust and the value of the Shares.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is not
a registered investment company and is not subject to the Commodity Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is not a registered
investment company subject to the Investment Company Act. Consequently, Shareholders of the Trust do not have the regulatory protections
provided to Shareholders in registered and regulated investment companies, which, for example, require investment companies to have a
certain percentage of disinterested directors and regulate the relationship between the investment company and certain of its affiliates.
Further, the Trust will not hold or trade in commodity futures contracts regulated by the Commodity Exchange Act, as administered by the
CFTC. The Trust will not engage in &ldquo;retail commodity transactions&rdquo;&mdash; any LTC transaction entered into on a leveraged,
margined or financed basis (as described above). Such transactions are deemed to be commodity futures under the Commodity Exchange Act
and subject to CFTC jurisdiction. Furthermore, the Sponsor believes that the Trust is not a commodity pool for purposes of the Commodity
Exchange Act. Consequently, Shareholders will not have the regulatory protections provided to Shareholders in Commodity Exchange Act-regulated
instruments or commodity pools.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>Changes
in SEC policy could adversely impact the value of the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
effect of any future regulatory change on the Trust or the digital assets held by the Trust is impossible to predict, but such change
could be substantial and adverse to the Trust and the value of the Shares. In particular, with the exception of funds that hold bitcoin,
ether and certain ether-based derivatives, the SEC has not yet approved the listing on a national securities exchange of any non-futures
based digital-asset focused exchange-traded fund (&ldquo;ETF&rdquo;). If the SEC were to approve any such ETF other than ours in the future,
such an ETF may be perceived to be a superior investment product offering exposure to digital assets compared to the Trust because the
value of the shares issued by such an ETF would be expected to more closely track the ETF&rsquo;s net asset value than do Shares of the
Trust, and investors may therefore favor investments in such ETFs over investments in the Trust. Any weakening in demand for the Shares
compared to digital asset ETF shares could cause the value of the Shares to decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.75pt; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.75pt; background-color: white"><B><I>Competing
industries may have more influence with policymakers than the digital asset industry, which could lead to the adoption of laws and regulations
that are harmful to the digital asset industry.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.75pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27.75pt; background-color: white">The
digital asset industry is relatively new, although its influence over public policy is increasing, and it does not have the same access
to policymakers and lobbying organizations in many jurisdictions compared to industries with which digital assets may be seen to compete,
such as banking, payments and consumer finance. Competitors from other, more established industries may have greater access to and influence
with governmental officials and regulators and may be successful in persuading these policymakers that digital assets require heightened
levels of regulation compared to the regulation of traditional financial services. As a result, new laws and regulations may be proposed
and adopted in the United States and elsewhere, or existing laws and regulations may be interpreted in new ways, that disfavor or impose
compliance burdens on the digital asset industry or digital asset platforms, which could adversely impact the value of LTC and therefore
the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I></I></B></P>

<!-- Field: Page; Sequence: 55; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->50<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>Regulatory
changes or other events in foreign jurisdictions may affect the value of the Shares or restrict the use of one or more digital assets,
mining activity or the operation of their networks or the digital asset trading platform market in a manner that adversely affects the
value of the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Various
foreign jurisdictions have, and may continue to adopt laws, regulations or directives that affect the digital asset network, the digital
asset markets, and their users, particularly digital asset trading platforms and service providers that fall within such jurisdictions&rsquo;
regulatory scope. For example, if foreign jurisdictions in addition to China were to ban or otherwise restrict mining activity, including
by regulating or limiting manufacturers&rsquo; ability to produce or sell semiconductors or hard drives in connection with mining, it
would have a material adverse effect on digital asset networks (including the Litecoin Network), the Digital Asset Market, and as a result,
impact the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">A
number of foreign jurisdictions have recently taken regulatory action aimed at digital asset activities. China has made transacting in
cryptocurrencies illegal for Chinese citizens in mainland China, and additional restrictions may follow. Both China and South Korea have
banned initial coin offerings entirely and regulators in other jurisdictions, including Canada, Singapore and Hong Kong, have opined that
initial coin offerings may constitute securities offerings subject to local securities regulations. The United Kingdom&rsquo;s Financial
Conduct Authority published final rules in October 2020 banning the sale of derivatives and exchange-traded notes that reference certain
types of digital assets, contending that they are &ldquo;ill-suited&rdquo; to retail investors citing extreme volatility, valuation challenges
and association with financial crime. A new law, the Financial Services and Markets Act 2023 (&ldquo;FSMA&rdquo;), received royal assent
in June 2023. The FSMA brings digital asset activities within the scope of existing laws governing financial institutions, markets and
assets. In addition, the Parliament of the European Union approved the text of MiCA in April 2023, establishing a regulatory framework
for digital asset services across the European Union. Certain parts of MiCA became effective as of June 2024 and the remainder will start
to apply as of December 2024. MiCA is intended to serve as a comprehensive regulation of digital asset markets and imposes various obligations
on digital asset issuers and service providers. The main aims of MiCA are industry regulation, consumer protection, prevention of market
abuse and upholding the integrity of digital asset markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Foreign
laws, regulations or directives may conflict with those of the United States and may negatively impact the acceptance of one or more digital
assets by users, merchants and service providers outside the United States and may therefore impede the growth or sustainability of the
digital asset economy in the European Union, China, Japan, Russia and the United States and globally, or otherwise negatively affect the
value of LTC. Moreover, other events, such as the interruption in telecommunications or internet services, cyber-related terrorist acts,
civil disturbances, war or other catastrophes, could also negatively affect the digital asset economy in one or more jurisdictions. For
example, Russia&rsquo;s invasion of Ukraine on February 24, 2022 led to volatility in digital asset prices, with an initial steep decline
followed by a sharp rebound in prices. The effect of any future regulatory change or other events on the Trust or LTC is impossible to
predict, and such change could be substantial and adverse to the Trust and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>If
regulators or public utilities take actions that restrict or otherwise impact mining activities, there may be a significant decline in
such activities, which could adversely affect the Litecoin Network and the value of the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Concerns
have been raised about the electricity required to secure and maintain digital asset networks. For example, as of ________, 202_, over
1,005 tera hashes are performed every second in connection with mining on the Litecoin Network. Although measuring the electricity consumed
by this process is difficult because these operations are performed by various machines with varying levels of efficiency, the process
consumes a significant amount of energy. The operations of the Litecoin Network and other digital asset networks may also consume significant
amounts of energy. Further, in addition to the direct energy costs of performing calculations on any given digital asset network, there
are indirect costs that impact a network&rsquo;s total energy consumption, including the costs of cooling the machines that perform these
calculations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Driven
by concerns around energy consumption and the impact on public utility companies, various states and cities have implemented, or are considering
implementing, moratoriums on mining activity in their jurisdictions. For example, in November 2022, New York imposed a two-year moratorium
on new proof-of-work mining permits at fossil fuel plants in the state. A significant reduction in mining activity as a result of such
actions could adversely affect the security of the Litecoin Network by making it easier for a malicious actor or botnet to manipulate
the Blockchain. See <I>&ldquo;<FONT STYLE="background-color: white">Risk Factors Related to Digital Assets</FONT>&mdash;If a malicious
actor or botnet obtains control of more than 50% of the processing power on the Litecoin Network, or otherwise obtains control over the
Litecoin Network through its influence over core developers or otherwise, such actor or botnet could manipulate the Blockchain to adversely
affect the value of the Shares or the ability of the Trust to operate.&rdquo;</I> If regulators or public utilities take action that restricts
or otherwise impacts mining activities, such actions could result in decreased security of a digital asset network, including the Litecoin
Network, and consequently adversely impact the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I></I></B></P>

<!-- Field: Page; Sequence: 56; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->51<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>If
regulators subject an Authorized Participant, the Trust or the Sponsor to regulation as a money service business or money transmitter,
this could result in extraordinary expenses to the Authorized Participant, the Trust or the Sponsor and also result in decreased liquidity
for the Shares. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">To
the extent that the activities of any Authorized Participant, the Trust or the Sponsor cause it to be deemed a &ldquo;money services business&rdquo;
under the regulations promulgated by FinCEN, such Authorized Participant, the Trust or the Sponsor may be required to comply with FinCEN
regulations, including those that would mandate the Authorized Participant, the Trust or the Sponsor to implement anti-money laundering
programs, make certain reports to FinCEN and maintain certain records. Similarly, the activities of an Authorized Participant, the Trust
or the Sponsor may require it to be licensed as a money transmitter or as a digital asset business, such as under the &lsquo;NYDFS&rsquo;
BitLicense regulations or California&rsquo;s Digital Financial Assets Law, once effective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Such
additional regulatory obligations may cause the Authorized Participant, the Trust or the Sponsor to incur extraordinary expenses. If the
Authorized Participant, the Trust or the Sponsor decided to seek the required licenses, there is no guarantee that they will timely receive
them. An Authorized Participant may instead decide to terminate its role as Authorized Participant of the Trust, or the Sponsor may decide
to discontinue and wind up the Trust. An Authorized Participant&rsquo;s decision to cease acting as such may decrease the liquidity of
the Shares, which could adversely affect the value of the Shares, and termination of the Trust in response to the changed regulatory circumstances
may be at a time that is disadvantageous to the Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Additionally,
to the extent an Authorized Participant, the Trust or the Sponsor is found to have operated without appropriate state or federal licenses,
or registrations, it may be subject to investigation, administrative or court proceedings, and civil or criminal monetary fines and penalties,
all of which would harm the reputation of the Trust or the Sponsor, decrease the liquidity, and have a material adverse effect on the
price of, the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As LTC and the
broader digital assets ecosystem have grown, they have begun to attract more regulatory attention around the globe. The future regulatory
environment is uncertain and may vary by country or even within countries. Failure to appropriately regulate the digital assets ecosystem
could stifle innovation, which could adversely impact the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Current
and future legislation, CFTC and SEC rulemaking and other regulatory developments may impact the manner in which LTC is treated. In particular,
LTC may be classified by the CFTC as a &ldquo;commodity interest&rdquo; under the CEA or may be classified by the SEC as a &ldquo;security&rdquo;
under U.S. federal securities laws. The Sponsor and the Trust cannot be certain as to how future regulatory developments will impact the
treatment of LTC under the law. In the face of such developments, the required registrations and compliance steps may result in extraordinary,
nonrecurring expenses to the Trust. If the Sponsor decides to terminate the Trust in response to the changed regulatory circumstances,
the Trust may be dissolved or liquidated at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">To
the extent that LTC is deemed to fall within the definition of a &ldquo;commodity interest&rdquo; under the CEA, the Trust and the Sponsor
may be subject to additional regulation under the CEA and CFTC regulations. The Sponsor may be required to register as a commodity pool
operator or commodity trading adviser with the CFTC and become a member of the National Futures Association and may be subject to additional
regulatory requirements with respect to the Trust, including disclosure and reporting requirements. These additional requirements may
result in extraordinary, recurring and/or nonrecurring expenses of the Trust, thereby materially and adversely impacting the Shares. If
the Sponsor determines not to comply with such additional regulatory and registration requirements, the Sponsor will terminate the Trust.
Any such termination could result in the liquidation of the Trust&rsquo;s LTC at a time that is disadvantageous to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">To
the extent that LTC is determined to be a security under U.S. federal securities laws, the Trust and the Sponsor may be subject to additional
requirements under the Investment Company Act and the Sponsor may be required to register as an investment adviser under the Investment
Advisers Act. Such additional registration may result in extraordinary, recurring and/or non-recurring expenses of the Trust, thereby
materially and adversely impacting the Shares. If the Sponsor determines not to comply with such additional regulatory and registration
requirements, the Sponsor will terminate the Trust. Any such termination could result in the liquidation of the Trust&rsquo;s LTC at a
time that is disadvantageous to Shareholders.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">It may be illegal
now, or in the future, to acquire, own, hold, sell or use LTC in one or more countries, and ownership of, holding or trading in the Shares
may also be considered illegal and subject to sanction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although currently LTC is
not regulated or is lightly regulated in most countries, including the United States, one or more countries such as China, India or Russia
may take regulatory actions in the future that severely restricts the right to acquire, own, hold, sell or use LTC or to exchange LTC
for fiat currency. Such an action may also result in the restriction of ownership, holding or trading in the Shares. Such a restriction
could result in the termination and liquidation of the Trust at a time that is disadvantageous to Shareholders, or may adversely affect
an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 57; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->52<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white"><B><I>Due
to the largely unregulated nature and lack of transparency surrounding the operations of digital asset trading platforms, they may experience
fraud, market manipulation, business failures, security failures or operational problems, which may adversely affect the value of LTC
and, consequently, the value of the Shares.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Digital
asset trading platforms are relatively new and, in many ways, are not subject to, or may not comply with, regulation in relevant jurisdictions
in a manner similar to other regulated trading platforms, such as national securities exchanges or designated contract markets. While
many prominent digital asset trading platforms provide the public with significant information regarding their on-chain activities, ownership
structure, management teams, corporate practices, cybersecurity practices and regulatory compliance, many other digital asset trading
platforms do not provide this information. Furthermore, while digital asset trading platforms are and may continue to be subject to federal
and state licensing requirements in the United States, digital asset trading platforms do not currently appear to be subject to regulation
in a similar manner as other regulated trading platforms, such as national securities exchanges or designated contract markets. As a result,
the marketplace may lose confidence in digital asset trading platforms, including prominent trading platforms that handle a significant
volume of LTC trading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Many
digital asset trading platforms both in the United States and abroad are unlicensed, not subject to, or not in compliance with, regulation
in relevant jurisdictions, or operate without extensive supervision by governmental authorities. In particular, those located outside
the United States may be subject to significantly less stringent regulatory and compliance requirements in their local jurisdictions and
may take the position that they are not subject to laws and regulations that would apply to a national securities exchange or designated
contract market in the United States, or may, as a practical matter, be beyond the ambit of U.S. regulators. As a result, trading activity
on or reported by these digital asset trading platforms is generally significantly less regulated than trading activity on or reported
by regulated U.S. securities and commodities markets, and may reflect behavior that would be prohibited in regulated U.S. trading venues.
For example, in 2022 one report claimed that trading volumes on digital asset trading platforms were inflated by over 70% due to false
or non-economic trades, with specific focus on unlicensed trading platforms located outside of the United States. Such reports may indicate
that the digital asset trading platform market is significantly smaller than expected and that the U.S. makes up a significantly larger
percentage of the digital asset trading platform market than is commonly understood, or that a much larger portion of digital asset market
activity takes place on decentralized finance platforms than is commonly understood. Nonetheless, any actual or perceived false trading
in the digital asset trading platform market, and any other fraudulent or manipulative acts and practices, could adversely affect the
value of LTC and/or negatively affect the market perception of LTC, which could in turn adversely impact the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
SEC has also identified possible sources of fraud and manipulation in the digital asset markets generally, including, among others (1)
&ldquo;wash-trading&rdquo;; (2) persons with a dominant position in LTC manipulating LTC pricing; (3) hacking of the Litecoin Network
and trading platforms; (4) malicious control of the Litecoin Network; (5) trading based on material, non-public information (for example,
plans of market participants to significantly increase or decrease their holdings in LTC, new sources of demand for LTC) or based on the
dissemination of false and misleading information; (6) manipulative activity involving purported &ldquo;stablecoins,&rdquo; including
Tether; and (7) fraud and manipulation at digital asset markets. The use or presence of such acts and practices in the digital asset markets
could, for example, falsely inflate the volume of LTC present in the digital asset markets or cause distortions in the price of LTC, among
other things that could adversely affect the Trust or cause losses to Shareholders. Moreover, tools to detect and deter fraudulent or
manipulative trading activities, such as market manipulation, front-running of trades, and wash-trading, may not be available to or employed
by digital asset markets, or may not exist at all. Many digital asset markets also lack certain safeguards put in place by exchanges for
more traditional assets to enhance the stability of trading on the exchanges and prevent &ldquo;flash crashes,&rdquo; such as limit-down
circuit breakers. As a result, the prices of LTC on digital asset markets may be subject to larger and/or more frequent sudden declines
than assets traded on more traditional exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition, over the past several years, some digital asset trading platforms have been closed, been subject to criminal and civil litigation
and have entered into bankruptcy proceedings due to fraud and manipulative activity, business failure and/or security breaches. In many
of these instances, the customers of such digital asset trading platforms were not compensated or made whole for the partial or complete
losses of their account balances in such digital asset trading platforms. In some instances, customers are made whole only in dollar terms
as of the digital asset trading platform&rsquo;s date of failure, rather than on a digital asset basis, meaning customers may still lose
out on any price increase in digital assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

<!-- Field: Page; Sequence: 58; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->53<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">While
smaller digital asset trading platforms are less likely to have the infrastructure and capitalization that make larger digital asset trading
platforms more stable, larger digital asset trading platforms are more likely to be appealing targets for hackers and malware and their
shortcomings or ultimate failures are more likely to have contagion effects on the digital asset ecosystem, including on the price of
LTC, and therefore may be more likely to be targets of regulatory enforcement action. For example, in February 2014, Mt. Gox, the largest
digital asset trading platform at the time, halted withdrawals of bitcoin and subsequently filed for bankruptcy protection in Japan following
an exploit that resulted in the loss of several hundred thousand bitcoin. In the two weeks following the halt of bitcoin withdrawals from
Mt. Gox, the value of one bitcoin fell on other trading platforms from around $795 to $578. Failure and shortcomings of large digital
asset trading platforms have since continued; in January 2015, Bitstamp announced that approximately 19,000 bitcoin had been stolen from
its operational or &ldquo;hot&rdquo; wallets, and in August 2016, it was reported that almost 120,000 bitcoin then worth around $78 million
were stolen from Bitfinex. The value of bitcoin and other digital assets immediately decreased over 10% following reports of the theft
at Bitfinex. Regulatory enforcement actions have followed, such as in July 2017, when FinCEN assessed a $110 million fine against BTC-E,
a now defunct digital asset trading platform, for facilitating crimes such as drug sales and ransomware attacks. In addition, in December
2017, Yapian, the operator of Seoul-based digital asset trading platform Youbit, suspended digital asset trading and filed for bankruptcy
following an exploit that resulted in a loss of 17% of Yapian&rsquo;s assets. In January 2018, the Japanese digital asset trading platform,
Coincheck, was exploited, resulting in losses of approximately $535 million, and in February 2018, the Italian digital asset trading platform,
Bitgrail, was exploited, resulting in approximately $170 million in losses. In May 2019, one of the world&rsquo;s largest digital asset
trading platforms, Binance, was exploited, resulting in losses of approximately $40 million. More recently, in November 2022, FTX, another
of the world&rsquo;s largest digital asset trading platforms, filed for bankruptcy protection and subsequently halted customer withdrawals
as well as trading on its FTX.US platform. Fraud, security failures and operational problems all played a role in FTX&rsquo;s issues and
downfall. Moreover, digital asset trading platforms have been a subject of enhanced regulatory and enforcement scrutiny, and digital asset
markets have experienced continued instability, following the failure of FTX. In particular, in June 2023, the SEC brought the Binance
Complaint and Coinbase Complaint, alleging that Binance and Coinbase operated unregistered securities exchanges, brokerages and clearing
agencies. In addition, in November 2023, the SEC brought the Kraken Complaint, alleging that ' operated as an unregistered securities
exchange, brokerage and clearing agency. Negative perception, a lack of stability and standardized regulation in the digital asset markets
and/or the closure or temporary shutdown of digital asset trading platforms due to fraud, business failure, security breaches or government
mandated regulation, and associated losses by customers, may reduce confidence in the Litecoin Network and result in greater volatility
in the prices of LTC. Furthermore, the closure or temporary shutdown of a digital asset trading platform used in calculating the Index
Price may result in a loss of confidence in the Trust&rsquo;s ability to determine its NAV on a daily basis. These potential consequences
of such a digital asset trading platform&rsquo;s failure could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The ongoing activities
of the Trust may generate tax liabilities for Shareholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As described below under <I>&ldquo;United
States Federal Income Tax Consequences&mdash;Taxation of U.S. Shareholders,&rdquo;</I> it is expected that each Shareholder will include
in the computation of their taxable income their proportionate share of the taxable income and expenses of the Trust and amounts realized
in connection with the use of LTC or the sale of LTC to pay Trust expenses or facilitate redemption transactions. The Trust does not anticipate
making distributions to Shareholders, so any tax liability that a Shareholder incurs as a result of holding Shares will need to be satisfied
from some other source of funds. Sales of LTC to fund cash redemptions are expected to result in gains and losses, with such gains and
losses expected to be treated as incurred by the Shareholder that is being redeemed. These gains or losses generally would equal the difference
between the amount realized from the sale of the LTC and the Shareholder&rsquo;s tax basis for the portion of the Shareholder&rsquo;s
pro rata share of the LTC held in the Trust that is sold to fund the redemption, as determined in the manner described above. A redemption
of some or all of a Shareholder&rsquo;s Shares in exchange for the cash received from such sale is not expected to be treated as a separate
taxable event for the Shareholder. If a Shareholders sells Shares in order to raise funds to satisfy such a tax liability, the sale itself
may generate additional taxable gain or loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The tax treatment of
LTC and transactions involving LTC for United States federal income tax purposes may change.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under current IRS guidance,
LTC is treated as property, not as currency, for U.S. federal income tax purposes and transactions involving payment in LTC in return
for goods and services are treated as barter exchanges. Such exchanges result in capital gain or loss measured by the difference between
the price at which LTC is exchanged and the taxpayer&rsquo;s basis in the LTC. However, because LTC is a new technological innovation,
because IRS guidance has taken the form of administrative pronouncements that may be modified without prior notice and comment, and because
there is as yet little case law on the subject, the U.S. federal income tax treatment of an investment in LTC or in transactions relating
to investments in LTC may change from that described in this Prospectus, possibly with retroactive effect. Any such change in the U.S.
federal income tax treatment of LTC may have a negative effect on prices of LTC and may adversely affect the value of the Shares. In this
regard, the IRS has indicated that it has made it a priority to issue additional guidance related to the taxation of virtual currency
transactions, such as transactions involving LTC. While it has started to issue such additional guidance, whether any future guidance
will adversely affect the U.S. federal income tax treatment of an investment in LTC or in transactions relating to investments in LTC
is unknown. Moreover, future developments that may arise with respect to digital currencies may increase the uncertainty with respect
to the treatment of digital currencies for U.S. federal income tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The tax treatment of
LTC and transactions involving LTC for state and local tax purposes is not settled.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because LTC is a new technological
innovation, the tax treatment of LTC for state and local tax purposes, including, without limitation state and local income and sales
and use taxes, is not settled. It is uncertain what guidance, if any, on the treatment of LTC for state and local tax purposes may be
issued in the future. A state or local government authority&rsquo;s treatment of LTC may have negative consequences, including the imposition
of a greater tax burden on investors in LTC or the imposition of a greater cost on the acquisition and disposition of LTC generally. Any
such treatment may have a negative effect on prices of LTC and may adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I></I></B></P>

<!-- Field: Page; Sequence: 59; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->54<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>A &ldquo;fork&rdquo;
of the Litecoin Blockchain or an airdrop could result in Shareholders incurring a tax liability.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If a fork occurs in the Litecoin
Blockchain, the Trust Agreement requires that the Sponsor analyze the transaction according to several criteria and promptly determine
which digital asset network is generally accepted as the Litecoin Blockchain and should therefore be considered the appropriate network
for the Trust&rsquo;s purposes. The Sponsor will base its determination on a variety of then-relevant factors, including, but not limited
to, the Sponsor&rsquo;s beliefs regarding expectations of the core developers of LTC, users, services, businesses, miners and other constituencies,
as well as the actual continued acceptance of, validating power on, and community engagement with, the Litecoin Blockchain. The outcome
of such determination shall determine which asset is &ldquo;LTC&rdquo; and which is the Forked Asset, an IR Asset. Pursuant to the Trust
Agreement, the Trust has explicitly disclaimed all Incidental Rights and IR Assets, including Forked Assets. Such assets are not considered
assets of the Trust at any point in time. Once it has been determined by the Sponsor which asset is LTC and which is the Forked Asset,
the Sponsor will, as soon as practicable, and, if possible, immediately, distribute the Forked Asset to the Sponsor. Once acquired, the
Sponsor may take any lawful action necessary or desirable in connection with its acquisition of such asset. In the event that the Sponsor
decides to sell the Forked Asset, it will seek to do so for cash. This may be a sale of the Forked Asset directly in exchange for cash,
or in exchange for another digital asset which may subsequently be exchanged for cash. The Sponsor would then contribute that cash back
to the Trust, which in turn would distribute the cash to DTC to be distributed to Shareholders in proportion to the number of Shares owned.
The receipt of cash in connection with this distribution may cause Shareholders to incur a U.S. federal, state, local, or foreign tax
liability. In addition, the IRS may not accept the Trust&rsquo;s position that disclaimed Incidental Rights or IR Assets do not represent
a taxable incident. Any tax liability could adversely impact an investment in the Shares and may require Shareholders to prepare and file
tax returns. Any tax liability could adversely impact an investment in the Shares and may require Shareholders to prepare and file tax
returns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the IRS guidance on
digital assets, hard forks, airdrops and similar occurrences with respect to digital assets will under certain circumstances be treated
as taxable events giving rise to ordinary income. In the absence of guidance to the contrary, it is possible that any such income recognized
by a U.S. tax-exempt Shareholder would constitute &ldquo;unrelated business taxable income&rdquo; (&ldquo;UBTI&rdquo;). A tax-exempt Shareholder
should consult its tax adviser regarding whether such Shareholder may recognize UBTI as a consequence of an investment in Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Non-U.S. Holders may
be subject to U.S. federal withholding tax on income derived from forks, airdrops and similar occurrences.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IRS guidance on digital assets
does not address whether income recognized by a non-U.S. person as a result of a fork, airdrop or similar occurrence could be subject
to the 30% withholding tax imposed on U.S.-source &ldquo;fixed or determinable annual or periodical&rdquo; income. Non-U.S. Shareholders
should assume that, in the absence of guidance, a withholding agent (including the Sponsor) is likely to withhold 30% of any such income
recognized by a non-U.S. Shareholder in respect of its Shares, including by deducting such withheld amounts from proceeds that such non-U.S.
Shareholder would otherwise be entitled to receive in connection with a distribution of cash in connection with the Sponsor&rsquo;s sale
of an IR Right and/or IR Asset and contributing such cash back to the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The intended tax treatment
of the Trust will limit the flexibility of the Trust&rsquo;s investment decisions.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is intended to be
a grantor trust for Federal income tax purposes. A grantor trust is not permitted to change the investment of the Shareholders to take
advantage of market fluctuations. Thus, the Sponsor may allow the Trust to hold when an actively managed fund would sell. The Sponsor
may distribute proceeds when an actively managed fund would reinvest the proceeds. In addition, a fund treated as a grantor trust may
not participate in trading or lending activity without raising a risk of change in status. This means that the returns of the Trust may
be less than a successfully actively managed fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B></B></P>

<!-- Field: Page; Sequence: 60; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->55<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Risk Factors Related to the Index</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Index and
LRR each have a limited history.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Index, which was launched
on ________, 202_, is based on materially the same methodology (except calculation time) as the LRR, which was first introduced on ________,
202_. The Index and the LRR have a limited history and their value is an average composite reference rate calculated using volume-weighted
trading price data from the Selected Exchanges. A longer history of actual performance through various economic and market conditions
would provide greater and more reliable information for an investor to assess Index&rsquo;s performance. The Benchmark Administrator has
substantial discretion at any time to change the methodology used to calculate the Index, including the Selected Exchanges that contribute
prices to the Trust&rsquo;s NAV. The Benchmark Administrator does not have any obligation to take into consideration the needs of the
Trust, the Shareholders, or anyone else in connection with such changes. There is no guarantee that the methodology currently used in
calculating the Index will appropriately track the price of LTC in the future. Neither Compass Financial Technologies SA nor the Benchmark
Administrator has any obligation to take into consideration the needs of the Trust or the Shareholders in determining, composing, or calculating
the Index or in the selection of the Selected Exchanges used. For more information on how the Selected Exchanges are chosen, see <I>&ldquo;THE
TRUST AND LTC PRICES &mdash; <FONT STYLE="text-transform: uppercase">Compass Crypto Reference Index Litecoin - 4pm NY Time.</FONT>&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the Index is intended
to accurately capture the market price of LTC, third parties may be able to purchase and sell LTC on public or private markets not included
among the Selected Exchanges, and such transactions may take place at prices materially higher or lower than the Index price. Moreover,
there may be variances in the price of LTC on the various Selected Exchanges, including as a result of differences in fee structures or
administrative procedures on different Selected Exchanges. While the Index provides a U.S. dollar-denominated price of LTC based on the
volume-weighted price of LTC on certain Selected Exchanges, at any given time, the prices on each such Selected Exchange may not be equal
to the price of LTC as represented by the Index. It is possible that the price of LTC on the Selected Exchanges could be materially higher
or lower than the Index price. To the extent the Index price differs materially from the actual prices available on a Selected Exchange,
or from the global market price of LTC, the price of the Shares may no longer track, whether temporarily or over time, the global market
price of LTC, which could adversely affect an investment in the Trust by reducing investors&rsquo; confidence in the Shares&rsquo; ability
to track the market price of LTC. To the extent such prices differ materially from the Index price, investors may lose confidence in the
Shares&rsquo; ability to track the market price of LTC, which could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The pricing sources (Selected
Exchanges) used by the Index are digital asset trading venues that facilitate the buying and selling of LTC and other digital assets.
Although many pricing sources refer to themselves as &ldquo;exchanges,&rdquo; they are not registered with, or supervised by, the SEC
or the CFTC and they do not meet the regulatory standards of a national securities exchange or designated contract market. For these reasons,
among others, purchases and sales of LTC may be subject to temporary distortions or other disruptions due to various factors, including
the lack of liquidity in the markets and government regulation and intervention. These circumstances could affect the price of LTC used
in Index calculations and, therefore, could adversely affect the LTC price as reflected by the Index.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Selected Exchanges may
change over time. For more information on the inclusion criteria for Selected Exchanges in the Index, see <I>&ldquo;THE TRUST AND LTC
PRICES &mdash; <FONT STYLE="text-transform: uppercase">Compass Crypto Reference Index Litecoin - 4pm NY Time.</FONT>&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Index is based on various
inputs which may include price data from various third-party digital asset trading platforms. Neither Compass Financial Technologies SA
nor the Benchmark Administrator guarantees the validity of any of these inputs, which may be subject to technological error, manipulative
activity, or fraudulent reporting from their initial source.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust utilizes the Index
to establish its NAV and NAV per Share. In the event that the Index is incorrectly calculated, is not timely calculated or changes its
calculation methodology in the future, such an occurrence may adversely impact an investment in the Shares or the Trust&rsquo;s operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 61; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->56<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the Index and LRR
are designed to accurately capture the market price of LTC, third parties may be able to purchase and sell LTC on public or private markets
not included among the Selected Exchanges of the Index and LRR, and such transactions may take place at prices materially higher or lower
than the level of the Index used to establish the NAV. To the extent such prices differ materially from the level of the Index used to
establish the NAV, investors may lose confidence in the Shares&rsquo; ability to track the market price of LTC, which could adversely
affect an investment in the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Benchmark
Administrator could experience systems failures or errors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the computers or other
facilities of the Benchmark Administrator, data providers and/or relevant stock exchange malfunction for any reason, calculation and dissemination
of the Index may be delayed. Errors in Index data, the Index computations and/or construction may occur from time to time and may not
be identified and/or corrected for a period of time or at all, which may have an adverse impact on the Trust and the Shareholders. Any
of the foregoing may lead to errors in the Index, which may lead to a different investment outcome for the Trust and its Shareholders
than would have been the case had such events not occurred. The Index is the reference price for calculating the Trust&rsquo;s NAV. Consequently,
losses or costs associated with the Index&rsquo;s errors or other risks described above will generally be borne by the Trust and the Shareholders
and neither the Sponsor nor its affiliates or agents make any representations or warranties regarding the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Index is not available,
the Trust&rsquo;s holdings may be fair valued in accordance with the policy approved by the Sponsor. If the Index is not available, or
if the Sponsor determines, in its sole discretion, that the Index does not reflect an accurate LTC price, the Trust&rsquo;s holdings may
be &ldquo;fair valued&rdquo; in accordance with the valuation policies approved by the Sponsor. Those valuation policies stipulate that
when seeking to fair value LTC, the Sponsor may apply all available factors the Sponsor deems relevant at the time of the determination,
and may be based on analytical values determined by the Sponsor using third-party valuation models. Pursuant thereto, the Sponsor expects
to utilize a volume-weighted average price or volume-weighted median price of LTC provided by a secondary pricing source (&ldquo;Secondary
Source&rdquo;). If a Secondary Source is not available or the Sponsor in its sole discretion determines the Secondary Sources are unreliable,
the price set by the Trust&rsquo;s principal market as of 4:00 p.m. ET, on the valuation date would be considered for utilization. In
the event the principal market price is not available or the Sponsor in its sole discretion determines the principal market valuation
is unreliable the Sponsor will use its best judgment to determine a good faith estimate of fair value based upon all available factors.
The Sponsor does not anticipate that the need to &ldquo;fair value&rdquo; LTC will be a common occurrence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent the valuation
determined in accordance with the policy approved by the Sponsor differs materially from the actual market price of LTC, the price of
the Shares may no longer track, whether temporarily or over time, the global market price of LTC, which could adversely affect an investment
in the Trust by reducing investors&rsquo; confidence in the Shares&rsquo; ability to track the global market price of LTC. To the extent
such prices differ materially from the market price for LTC, investors may lose confidence in the Shares&rsquo; ability to track the market
price of LTC, which could adversely affect the value of the Shares. The Sponsor does not anticipate that the need to &ldquo;fair value&rdquo;
LTC will be a common occurrence.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Index could
fail to track the global LTC price, and a failure of the Index could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the Index is intended
to accurately capture the market price of LTC, third parties may be able to purchase and sell LTC on public or private markets not included
among the Selected Exchanges, and such transactions may take place at prices materially higher or lower than the Index price. Moreover,
there may be variances in the price of LTC on the various Selected Exchanges, including as a result of differences in fee structures or
administrative procedures on different Selected Exchanges. While the Index provides a U.S. dollar-denominated composite for the price
of LTC based on the volume-weighted price of LTC on certain Selected Exchanges, at any given time, the prices on each such Selected Exchange
or pricing source may not be equal to the price of LTC as represented by the Index. It is possible that the price of LTC on the Selected
Exchanges could be materially higher or lower than the Index price. To the extent the Index price differs materially from the actual prices
available on a Selected Exchange, or from the global market price of LTC, the price of the Shares may no longer track, whether temporarily
or over time, the global market price of LTC, which could adversely affect an investment in the Trust by reducing investors&rsquo; confidence
in the Shares&rsquo; ability to track the market price of LTC. To the extent such prices differ materially from the Index price, investors
may lose confidence in the Shares&rsquo; ability to track the market price of LTC, which could adversely affect the value of the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 62; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->57<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor can
discontinue using the Index and use a different pricing or valuation methodology instead.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor, in its sole discretion,
may cause the Trust to price its portfolio based upon an index, benchmark or standard other than the Index at any time, with prior notice
to the Shareholders, if investment conditions change or the Sponsor believes that another index, benchmark or standard better aligns with
the Trust&rsquo;s investment objective and strategy. The Sponsor may make this decision for a number of reasons, including, but not limited
to, a determination that the Index price of LTC differs materially from the global market price of LTC and/or that third parties are able
to purchase and sell LTC on public or private markets not included among the Selected Exchanges, and such transactions may take place
at prices materially higher or lower than the Index price. The Sponsor, however, is under no obligation whatsoever to make such changes
in any circumstance. In the event that the Sponsor intends to establish the Trust&rsquo;s NAV by reference to an index, benchmark or standard
other than the Index, it will provide Shareholders with notice in a prospectus supplement and/or through a current report on Form 8-K
or in the Trust&rsquo;s annual or quarterly reports.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Index price
used to calculate the value of the Trust&rsquo;s LTC may be volatile, adversely affecting the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The price of LTC on public
digital asset trading platforms has a limited history, and during this history, LTC prices on the digital asset markets more generally,
and on digital asset trading platforms individually, have been volatile and subject to influence by many factors, including operational
interruptions. While the Index is designed to limit exposure to the interruption of individual digital asset trading platforms, the Index
price, and the price of LTC generally, remains subject to volatility experienced by digital asset trading platforms, and such volatility
could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, because the number
of liquid and credible digital asset trading platforms is limited, the Index will necessarily be composed of a limited number of digital
asset trading platforms. If a digital asset trading platform were subjected to regulatory, volatility or other pricing issues, the Benchmark
Administrator would have limited ability to remove such digital asset trading platform from the Index, which could skew the price of LTC
as represented by the Index. Trading on a limited number of digital asset trading platforms may result in less favorable prices and decreased
liquidity of LTC and, therefore, could have an adverse effect on the value of the Shares.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Index price
being used to determine the NAV of the Trust may not be consistent with GAAP. To the extent that the Trust&rsquo;s financial statements
are determined using a different pricing source that is consistent with GAAP, the NAV reported in the Trust&rsquo;s periodic financial
statements may differ, in some cases significantly, from the Trust&rsquo;s NAV determined using the Index pricing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will determine the
NAV of the Trust on each business day based on the value of LTC as reflected by the Index. The methodology used to calculate the Index
price to value LTC in determining the NAV of the Trust may not be deemed consistent with GAAP. To the extent the methodology used to calculate
the Index is deemed inconsistent with GAAP, the Trust will utilize an alternative GAAP-consistent pricing source for purposes of the Trust&rsquo;s
periodic financial statements. Creation and redemption of Baskets, the Sponsor Fee and other expenses borne by the Trust will be determined
using the Trust&rsquo;s NAV determined daily based on the Index. Such NAV of the Trust determined using the Index price may differ, in
some cases significantly, from the NAV reported in the Trust&rsquo;s periodic financial statements.</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 63; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->58<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Index is subject
to the limitations of its methodology and the LTC market.</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">Though
the Index is designed to be representative of the LTC market or otherwise align with its stated objective, it may not be representative
in every case or achieve its stated objective in all instances. The Index is designed and calculated strictly to follow the rules of its
methodology, and any Index price or other output is limited in its usefulness to such design and calculation. In addition, the Index will
necessarily be composed of a limited number of potential principal markets, and thus the Index may not reflect the value of LTC on crypto
exchanges not considered in the Index. Furthermore, the Benchmark Administrator does not publicize its methodology at any given time,
which may limit the ability of investors to evaluate the LTC prices that establish the value of the Index.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-style: normal; font-weight: normal">The
LTC market can be volatile, including those market interests that the Index intends to measure or upon which the Index is dependent in
order to achieve its stated objective. For example, illiquidity can have an impact on the quality or amount of data available to the Benchmark
Administrator for calculation, and may cause the Index to produce unpredictable or unanticipated results. In addition, market trends and
changes to market structure may render the objective of the Index unachievable or cause the Index to become impractical to replicate.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Risks Related
to Pricing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s portfolio
will be priced, including for purposes of determining the NAV, based upon the Index. The price of LTC in U.S. dollars or in other currencies
available from other data sources may not be equal to the prices used to calculate the NAV.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The NAV of the Trust will
change as fluctuations occur in the market price of the Trust&rsquo;s LTC holdings as reflected in the Index. Shareholders should be aware
that the public trading price per Share may be different from the NAV for a number of reasons, including price volatility; trading activity;
the closing of LTC trading platforms due to fraud, failure, security breaches or otherwise; and the fact that supply-and-demand forces
at work in the secondary trading market for Shares are related, but not identical, to the supply-and-demand forces influencing the market
price of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders also should note
that the size of the Trust in terms of total LTC held may change substantially over time and as Baskets are created and redeemed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event that the value
of the Trust&rsquo;s LTC holdings or LTC holdings per Share is incorrectly calculated, neither the Sponsor nor the Administrator will
be liable for any error and such misreporting of valuation data could adversely affect the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Index tracking risk.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although the Trust will attempt
to structure its portfolio so that investments track the Index, the Trust may not achieve the desired degree of correlation between its
performance and that of the Index and thus may not achieve its investment objective. The difference in performance may be due to factors
such as fees, transaction costs, redemptions of, and subscriptions for, Shares, pricing differences or the cost to the Trust of complying
with various new or existing regulatory requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The value of LTC as
reflected by the Index may be subject to momentum pricing due to speculation regarding future appreciation in value, leading to greater
volatility which could adversely affect an investment in the Shares.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Momentum pricing typically
is associated with growth stocks and other assets whose valuation, as determined by the investing public, accounts for anticipated future
appreciation in value. The Index is determined using data from various LTC Exchanges. The Sponsor believes that momentum pricing of LTC
has resulted, and may continue to result, in speculation regarding future appreciation in the value of LTC, inflating and making the Index
more volatile. As a result, LTC may be more likely to fluctuate in value due to changing investor confidence in future appreciation or
depreciation in the Index, which could adversely affect an investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B></B></P>

<!-- Field: Page; Sequence: 64; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->59<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>Risk Factors
Related to Potential Conflicts of Interest</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Potential conflicts
of interest may arise among the Sponsor or its affiliates and the Trust. The Sponsor and its affiliates have no fiduciary duties to the
Trust and its Shareholders, which may permit them to favor their own interests to the detriment of the Trust and its Shareholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor will manage the
business and affairs of the Trust. Conflicts of interest may arise among the Sponsor and its affiliates, including the Benchmark Administrator
and the Authorized Participants, on the one hand, and the Trust and its Shareholders, on the other hand. As a result of these conflicts,
the Sponsor may favor its own interests and the interests of its affiliates over the Trust and its Shareholders. These potential conflicts
include, among others, the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Sponsor has no fiduciary duties to, and is allowed to take into account the interests of parties other than, the Trust and its Shareholders in resolving conflicts of interest;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Trust has agreed to indemnify the Sponsor and its affiliates pursuant to the Trust Agreement;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Sponsor is responsible for allocating its own limited resources among different clients and potential future business ventures, to each of which it owes fiduciary duties;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Sponsor may select service providers that are affiliates, such as ________, which may create or give the appearance of a conflict of interest with Shareholders&rsquo; best interest;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Sponsor&rsquo;s staff also services affiliates of the Sponsor and their respective clients and cannot devote all of its, or their, respective time or resources to the management of the business and affairs of the Trust;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Sponsor, its affiliates and their officers and employees are not prohibited from engaging in other businesses or activities, including those that might be in direct competition with the Trust;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There is an absence of arm&rsquo;s-length negotiation with respect to certain terms of the Trust, and, where applicable, there has been no independent due diligence conducted with respect to this offering; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Sponsor decides whether to retain separate counsel, accountants or others to perform services for the Trust.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">By investing in the Shares,
investors agree and consent to the provisions set forth in the Trust Agreement. See &ldquo;Description of the Trust Agreement.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For a further discussion of
the conflicts of interest among the Sponsor, Authorized Participants, Benchmark Administrator, Custodians, Cash Custodian, Trust and others,
see &ldquo;Conflicts of Interest.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Prime Broker.</I></B>
&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Broker may have
actual or potential conflicts of interest in connection with providing Prime Broker Services. The Prime Broker provides various services
to the Trust, including custody and settlement. The Prime Broker may also act as a LTC Trading Counterparty, meaning that it buys and
sells LTC from and to the Trust in connection with the creation and redemption of Baskets. This dual role may create a situation where
the interests of the Prime Broker do not align with the interests of Shareholders. As a result, the Prime Broker may have an incentive
to favor its own interests and interests of its affiliates over those of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor has no control
over the actions of the Prime Broker and relies on the Prime Broker to act in good faith and in compliance with applicable laws and regulations
and the Prime Broker Agreement, which requires the Prime Broker to have in place certain policies and procedures designed to mitigate
such conflicts. However, there can be no assurance that the Prime Broker will not abuse its dual roles or that the Sponsor will be able
to detect, prevent, or remedy any such abuse. The Trust may also have limited recourse or ability to enforce its rights against the Prime
Broker in the event of a dispute or breach. Therefore, the Prime Broker&rsquo;s conflicts of interest may adversely affect the Trust&rsquo;s
operations and performance, and may result in losses or liabilities for the Trust. See &ldquo;The Prime Broker and the Trade Credit Lender.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Affiliates of the Sponsor
may invest in or trade LTC without regard to the interests of the Trust or its Shareholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Affiliates of the Sponsor
have substantial direct investments in LTC. Such affiliates of the Sponsor are permitted to manage such investments, taking into account
their own interests, without regard to the interests of the Trust or its Shareholders. Affiliates of the Sponsor may obtain exposure to
LTC through investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent that any substantial
investment in LTC is initiated, materially increased or materially reduced, such investment can affect the LTC Index Price. The initiation
of, or material increases in, a substantial investment in LTC may result in an increase in the LTC Index Price. A material reduction in
a substantial investment may result in a decrease in the LTC Index Price, having a negative impact on the value of Shares. See &ldquo;Conflicts
of Interest&mdash;Proprietary Trading/Other Clients.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 65; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->60<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Shareholders cannot
be assured of the Sponsor&rsquo;s continued services, the discontinuance of which may be detrimental to the Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders cannot be assured
that the Sponsor will be willing or able to continue to serve as sponsor to the Trust for any length of time. If the Sponsor discontinues
its activities on behalf of the Trust and a substitute sponsor is not appointed, the Trust will terminate and liquidate the LTC held by
the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Appointment of a substitute
sponsor will not guarantee the Trust&rsquo;s continued operation, successful or otherwise. Because a substitute sponsor may have no experience
managing a digital currency financial vehicle, a substitute sponsor may not have the experience, knowledge or expertise required to ensure
that the Trust will operate successfully or to continue to operate at all. Therefore, the appointment of a substitute sponsor may not
necessarily be beneficial to the Trust or an investment in the Shares and the Trust may terminate. See &ldquo;Conflicts of Interest&mdash;The
Sponsor.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The development and
commercialization of the Trust is subject to competitive pressures. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust and the Sponsor
face competition with respect to the creation of competing products. The Sponsor&rsquo;s competitors may have greater financial, technical
and human resources than the Sponsor. Smaller or early-stage companies may also prove to be effective competitors, particularly through
collaborative arrangements with large and established companies. In addition, the timing of the Trust in reaching the market and the fee
structure of the Trust relative to similar products may have a detrimental effect on the scale and sustainability of the Trust. Accordingly,
the Sponsor&rsquo;s competitors may commercialize a product involving LTC more rapidly or effectively than the Sponsor is able to, which
could adversely affect the Sponsor&rsquo;s competitive position, the likelihood that the Trust will achieve initial market acceptance
and the Sponsor&rsquo;s ability to generate meaningful revenues from the Trust, which in turn could cause the Sponsor to dissolve and
terminate the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, to the extent
that the Trust incurs transaction expenses in connection with the creation and redemption process, litigation expenses, indemnification
obligations under the Trust&rsquo;s service provider agreements and other extraordinary expenses that are not borne by the Sponsor, such
expenses will be borne by the Trust. To the extent that the Trust fails to attract a sufficiently large amount of investors, the effect
of such expenses on the value of the Shares may be significantly greater than would be the case if the Trust had attracted more assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Custodians owe no
fiduciary duties to the Trust or the Shareholders, is not required to act in their best interest and could resign or be removed by the
Sponsor, which could trigger early termination of the Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Neither of the Custodians
is a trustee for, and owes no fiduciary duties to, the Trust or the Shareholders. In addition, the Custodians have no duty to continue
to act as a custodian of the Trust. The Custodians can terminate their role as custodian for any reason whatsoever upon the notice period
provided under the relevant Custody Agreement. The Custodians may also be terminated. If the Custodians resign or are removed without
replacement such that the Trust does not have an available custody solution for its LTC, the Trust will dissolve in accordance with the
terms of the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Custodians&rsquo;
abilities to adopt technology in response to changing security needs or trends pose a challenge to the safekeeping of the Trust&rsquo;s
LTC.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The history of the LTC Exchange
Market has shown that LTC Exchanges and large holders of LTC must adapt to technological change in order to secure and safeguard client
accounts. While the Custodians are required in their respective agreements to safeguard the Vault Accounts from theft, loss, destruction
or other issues relating to hackers and technological attacks, their ability to do so is based on known technology and threats. As technological
change occurs, the security threats to the Vault Accounts will likely adapt and previously unknown threats may emerge. Furthermore, the
Sponsor believes that the Trust may become a more appealing target of security threats as the size of the Trust&rsquo;s assets grows.
To the extent that the Custodians are unable to identify and mitigate or stop new security threats, the Vault Accounts may be subject
to theft, loss, destruction or other attack, which could have a negative impact on the performance of the Shares or result in loss of
the Trust&rsquo;s assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Sponsor and its
affiliates, or another entity (i.e., a seed investor), may invest in the Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor, its affiliates,
or a seed investor, may invest in the Trust at or near the establishment of the Trust, which may facilitate the Trust achieving a specified
size or scale. Seed investors may contribute all or a majority of the assets in the Trust. There is a risk that such seed investors may
redeem their investments in the Trust. Such redemptions could have a significant negative impact on the Trust, including on its liquidity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 66; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->61<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Shareholders may be
adversely affected by the lack of independent advisers representing investors in the Trust.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor has consulted
with counsel, accountants and other advisers regarding the formation and operation of the Trust. No counsel has been appointed to represent
an investor in connection with the offering of the Shares. Accordingly, an investor should consult his, her or its own legal, tax and
financial advisers regarding the desirability of an investment in the Shares. Lack of such consultation may lead to an undesirable investment
decision with respect to investment in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Shareholders may be
adversely affected by the lack of regular shareholder meetings and no voting rights.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust Agreement,
Shareholders have limited voting rights and the Trust will not have regular Shareholder meetings and take no part in the management or
control of the Trust. Accordingly, Shareholders do not have the right to authorize actions, appoint service providers or take other actions
as may be taken by Shareholders of other trusts or companies where shares carry such rights. Shareholders, may, however, remove and replace
the Sponsor by the affirmative vote of a majority of the outstanding Shares. The Shareholders&rsquo; limited voting rights, however, give
almost all control under the Trust Agreement to the Sponsor and the Trustee. The Sponsor may take actions in the operation of the Trust
that may be adverse to the interests of Shareholders. The Sponsor&rsquo;s operation of the Trust could adversely affect an investment
in the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_006"></A>USE OF PROCEEDS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Proceeds received by the Trust
from the issuance and sale of Baskets will consist of cash. Deposits of cash are held by the Cash Custodian on behalf of the Trust until
(i) transferred in connection with the purchase of LTC that is subsequently deposited with a Custodian, (ii) delivered out in connection
with redemptions of Baskets or (iii) transferred to pay fees due to the Sponsor and Trust expenses and liabilities not assumed by the
Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">When the Trust uses cash proceeds
from creation transactions to purchase LTC, the Trust will receive LTC from a third party that is not an Authorized Participant. The Trust&mdash;not
any Authorized Participant&mdash;is responsible for selecting the third party to deliver the LTC. Furthermore, the third party will not
be acting as an agent of any Authorized Participant with respect to the delivery of the LTC to the Trust or acting at the direction of
any Authorized Participant with respect to the delivery of the LTC to the Trust. The Trust will redeem Shares by delivering LTC to a third
party that is not an Authorized Participant. The Trust&mdash;not any Authorized Participant&mdash;is responsible for selecting the third
party to receive the LTC. In addition, the third party will not be acting as an agent of any Authorized Participant with respect to the
receipt of the LTC from the Trust or acting at the direction of any Authorized Participant with respect to the receipt of the LTC from
the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_007"></A>THE LTC INDUSTRY
AND MARKET</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This section of the Prospectus
provides a more detailed description of LTC, including: information about the historical development of LTC; how a person holds LTC; how
to use LTC in transactions; how to trade LTC; the spot markets where LTC can be bought, held and sold; and the LTC OTC market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>LTC, the Litecoin
Blockchain and the Litecoin Network</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Litecoin,
or LTC, is a digital asset that is created and transmitted through the operations of the peer-to-peer Litecoin Network, a decentralized
network of computers that operates on cryptographic protocols. No single entity owns or operates the Litecoin Network, the infrastructure
of which is collectively maintained by a decentralized user base. The Litecoin Network allows people to exchange tokens of value, called
LTC, which are recorded on a public transaction ledger known as a blockchain. LTC can be used to pay for goods and services on the Litecoin
Network, or it can be converted to fiat currencies, such as the U.S. dollar, at rates determined on digital asset trading platforms or
in individual end-user-to-end-user transactions under a barter system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Litecoin
is an alternative software implementation of bitcoin that was created in late 2011 by Charlie Lee, a former Google employee, who set out
to create a proof-of-work currency that could be an alternative to bitcoin. Ultimately, this resulted in a clone of bitcoin. Although
Litecoin is thus very similar to bitcoin, there are several key differences between the Litecoin Network and the bitcoin network. These
differences include a block generation time of approximately two and a half minutes for LTC as compared to ten minutes for bitcoin, and
a cap on the number of coins that will be created of 84 million LTC, as compared to 21 million for bitcoin. As a result of these differences,
transactions using LTC occur four times faster than transactions using bitcoin and at a lower cost. Litecoin also implemented &ldquo;Scrypt,&rdquo;
a distinct hashing algorithm different from bitcoin&rsquo;s SHA-256 hashing algorithm.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

<!-- Field: Page; Sequence: 67; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->62<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Litecoin Network is decentralized and does not require governmental authorities or financial institution intermediaries to create, transmit
or determine the value of LTC. Rather, LTC is created and allocated by the Litecoin Network protocol through a &ldquo;mining&rdquo; process.
The value of LTC is determined by the supply of and demand for LTC on the digital asset trading platforms or in private end-user-to-end-user
transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Similar
to the bitcoin network, the Litecoin Network operates on a proof-of-work model. New LTC is created and rewarded to the miners of a block
in the Litecoin Blockchain for verifying transactions. The Litecoin Blockchain is effectively a decentralized database that includes all
blocks that have been mined by miners and it is updated to include new blocks as they are solved. Each LTC transaction is broadcast to
the Litecoin Network and, when included in a block, recorded in the Litecoin Blockchain. As each new block records outstanding LTC transactions,
and outstanding transactions are settled and validated through such recording, the Litecoin Blockchain represents a complete, transparent
and unbroken history of all transactions of the Litecoin Network. The current miner reward of 6.25 LTC per block was reduced from 12.5
LTC per block by 50% in August 2023, and will be further reduced by another 50% every 840,000 blocks, or approximately four years, thereafter.
A block of transactions is confirmed on the Litecoin Network approximately every 2.5 minutes. As of ________, 202_, approximately ____
million LTC were outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Similar
to bitcoin, LTC can be used to pay for goods and services or can be converted to fiat currencies, such as the U.S. dollar, at rates determined
on digital asset trading platforms or in individual end-user-to-end-user transactions under a barter system. Additionally, LTC is used
to pay for transaction fees to miners for verifying transactions on the Litecoin Network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Overview of the
Litecoin Network&rsquo;s Operations </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
order to own, transfer or use LTC directly on the Litecoin Network (as opposed to through an intermediary, such as a custodian), a person
generally must have internet access to connect to the Litecoin Network. LTC transactions may be made directly between end-users without
the need for a third-party intermediary. To prevent the possibility of double-spending LTC, a user must notify the Litecoin Network of
the transaction by broadcasting the transaction data to its network peers. The Litecoin Network provides confirmation against double-spending
by memorializing every transaction in the Litecoin Blockchain, which is publicly accessible and transparent. This memorialization and
verification against double-spending is accomplished through the Litecoin Network mining process, which adds &ldquo;blocks&rdquo; of data,
including recent transaction information, to the Litecoin Blockchain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Overview of Litecoin</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Prior
to engaging in LTC transactions directly on the Litecoin Network, a user generally must first install on its computer or mobile device
a Litecoin Network software program that will allow the user to generate a private and public key pair associated with an LTC address
commonly referred to as a &ldquo;wallet.&rdquo; The Litecoin Network software program and the LTC address also enable the user to connect
to the Litecoin Network and transfer LTC to, and receive LTC from, other users.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Each
Litecoin Network address, or wallet, is associated with a unique &ldquo;public key&rdquo; and &ldquo;private key&rdquo; pair. To receive
LTC, the LTC recipient must provide its public key to the party initiating the transfer. This activity is analogous to a recipient for
a transaction in U.S. dollars providing a routing address in wire instructions to the payor so that cash may be wired to the recipient&rsquo;s
account. The payor approves the transfer to the address provided by the recipient by &ldquo;signing&rdquo; a transaction that consists
of the recipient&rsquo;s public key with the private key of the address from where the payor is transferring the LTC. The recipient, however,
does not make public or provide to the sender its related private key.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">LTC
can be held in different types of wallets, including hardware wallets, software wallets and custodial wallets provided by digital asset
trading platforms. The wallet essentially holds the private keys that control the account on the Litecoin Blockchain. The private key
is crucial for signing transactions on the ledger. Whoever possesses the private key associated with a Litecoin Blockchain account effectively
controls the LTC held by that account. While LTC is the native asset, the Litecoin Blockchain also supports the holding and transferring
of other assets (like USD, EUR, or other digital assets) through a system of trust lines. However, these other assets are not XRP itself;
they are IOUs issued by institutions or individuals on the ledger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

<!-- Field: Page; Sequence: 68; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->63<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Neither
the recipient nor the sender reveal their private keys in a transaction, because the private key authorizes transfer of the funds in that
address to other users. Therefore, if a user loses his private key, the user may permanently lose access to the LTC contained in the associated
address. Likewise, LTC is irretrievably lost if the private key associated with them is deleted and no backup has been made. When sending
LTC, a user&rsquo;s Litecoin Network software program must validate the transaction with the associated private key. In addition, since
every computation on the Litecoin Network requires processing power, there is a transaction fee involved with the transfer that is paid
by the payor. The resulting digitally validated transaction is sent by the user&rsquo;s Litecoin Network software program to the Litecoin
Network miners to allow transaction confirmation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
discussed in greater detail below in &ldquo;&mdash;Creation of New LTC,&rdquo; Litecoin Network miners record and confirm transactions
when they mine and add blocks of information to the Litecoin Blockchain. When a miner mines a block, it creates that block, which includes
data relating to (i) newly submitted and accepted transactions; (ii) a reference to the prior block in the Litecoin Blockchain; and (iii)
the satisfaction of the consensus mechanism to mine the block. The miner becomes aware of outstanding, unrecorded transactions through
the data packet transmission and distribution discussed above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Upon
the addition of a block included in the Litecoin Blockchain, the Litecoin Network software program of both the spending party and the
receiving party will show confirmation of the transaction on the Litecoin Blockchain and reflect an adjustment to the LTC balance in each
party&rsquo;s Litecoin Network public key, completing the LTC transaction. Once a transaction is confirmed on the Litecoin Blockchain,
it is irreversible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Some
LTC transactions are conducted &ldquo;off-blockchain&rdquo; and are therefore not recorded in the Litecoin Blockchain. Some &ldquo;off-blockchain&rdquo;
transactions involve the transfer of control over, or ownership of, a specific digital wallet holding LTC or the reallocation of ownership
of certain LTC in a pooled-ownership digital wallet, such as a digital wallet owned by a digital asset trading platform. In contrast to
on-blockchain transactions, which are publicly recorded on the Litecoin Blockchain, information and data regarding off-blockchain transactions
are generally not publicly available. Therefore, off-blockchain transactions are not truly LTC transactions in that they do not involve
the transfer of transaction data on the Litecoin Network and do not reflect a movement of LTC between addresses recorded in the Litecoin
Blockchain. For these reasons, off-blockchain transactions are subject to risks as any such transfer of LTC ownership is not protected
by the protocol behind the Litecoin Network or recorded in, and validated through, the blockchain mechanism.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Creation of New
LTC</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><I>Initial
Creation of LTC</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
initial creation of LTC was in connection with a clone of the bitcoin blockchain in 2011. All additional LTC have been created through
the mining process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><I>Mining
Process</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Litecoin Network is kept running by computers all over the world. In order to incentivize those who incur the computational costs of securing
the network by validating transactions, there is a reward that is given to the computer that was able to create the latest block on the
chain. Every two and a half minutes, on average, a new block is added to the Litecoin Blockchain with the latest transactions processed
by the network, and the computer that generated this block is currently awarded 6.25 LTC, which was reduced by 50%, from 12.5 LTC, in
August 2023. Due to the nature of the algorithm for block generation, this process (generating a &ldquo;proof-of-work&rdquo;) is guaranteed
to be random. Over time, rewards are expected to be proportionate to the computational power of each machine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
process by which LTC is &ldquo;mined&rdquo; results in new blocks being added to the Litecoin Blockchain and new LTC tokens being issued
to the miners. Computers on the Litecoin Network engage in a set of prescribed complex mathematical calculations in order to add a block
to the Litecoin Blockchain and thereby confirm LTC transactions included in that block&rsquo;s data.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

<!-- Field: Page; Sequence: 69; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->64<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">To
begin mining, a user can download and run Litecoin Network mining software, which turns the user&rsquo;s computer into a &ldquo;node&rdquo;
on the Litecoin Network that validates blocks. Each block contains the details of some or all of the most recent transactions that are
not memorialized in prior blocks, as well as a record of the award of LTC to the miner who added the new block. Each unique block can
be solved and added to the Litecoin Blockchain by only one miner. Therefore, all individual miners and mining pools on the Litecoin Network
are engaged in a competitive process of constantly increasing their computing power to improve their likelihood of solving for new blocks.
As more miners join the Litecoin Network and its processing power increases, the Litecoin Network adjusts the complexity of the block-solving
equation to maintain a predetermined pace of adding a new block to the Litecoin Blockchain approximately every two and a half minutes.
A miner&rsquo;s proposed block is added to the Litecoin Blockchain once a majority of the nodes on the Litecoin Network confirms the miner&rsquo;s
work. Miners that are successful in adding a block to the Litecoin Blockchain are automatically awarded LTC for their effort and may also
receive transaction fees paid by transferors whose transactions are recorded in the block. This reward system is the method by which new
LTC enter into circulation to the public.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Litecoin Network is designed in such a way that the reward for adding new blocks to the Litecoin Blockchain decreases over time. Once
new LTC tokens are no longer awarded for adding a new block, miners will only have transaction fees to incentivize them, and as a result,
it is expected that miners will need to be better compensated with higher transaction fees to ensure that there is adequate incentive
for them to continue mining.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Limits on LTC Supply</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Litecoin Network is structured to allow a maximum of 84 million LTC to be created, which are mined over time with the creation of each
new block. The supply of new LTC is mathematically controlled so that the number of LTC grows at a limited rate pursuant to a pre-set
schedule. The number of LTC awarded for solving a new block is automatically halved after every 840,000 blocks are added to the Litecoin
Blockchain. Currently, the fixed reward for solving a new block is 6.25 LTC per block, and this is expected to decrease by half to become
3.125 LTC after the next 840,000 blocks since the last reward reduction have entered the Litecoin Network, which is expected to be approximately
July 2027. This deliberately controlled rate of LTC creation means that the number of LTC in existence will increase at a controlled rate
until the number of LTC in existence reaches 84 million LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
of ________, 202_, approximately ____ million LTC were outstanding, and estimates of when the 84 million LTC limitation will be reached
range from at or near the year 2140.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Modifications to
the LTC Protocol</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Litecoin Network is an open source project with no official developer or group of developers that controls it. However, the Litecoin Network&rsquo;s
development has historically been overseen by a core group of developers. The core developers are able to access, and can alter, the Litecoin
Network source code and, as a result, they are responsible for quasi-official releases of updates and other changes to the Litecoin Network&rsquo;s
source code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
release of updates to the Litecoin Network&rsquo;s source code does not guarantee that the updates will be automatically adopted. Users
and miners must accept any changes made to the Litecoin source code by downloading the proposed modification of the Litecoin Network&rsquo;s
source code. A modification of the Litecoin Network&rsquo;s source code is effective only with respect to the Litecoin users and miners
that download it. If a modification is accepted by only a percentage of users and miners, a division in the Litecoin Network will occur
such that one network will run the pre-modification source code and the other network will run the modified source code. Such a division
is known as a &ldquo;fork.&rdquo; Consequently, as a practical matter, a modification to the source code becomes part of the Litecoin
Network only if accepted by participants collectively having most of the processing power on the Litecoin Network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Core
development of the Litecoin Network source code has increasingly focused on modifications of the Litecoin Network protocol to increase
speed and scalability and also allow for non-financial, next generation uses. The Trust&rsquo;s activities will not directly relate to
such projects, though such projects may utilize LTC as tokens for the facilitation of their non-financial uses, thereby potentially increasing
demand for LTC and the utility of the Litecoin Network as a whole. Conversely, projects that operate and are built within the Blockchain
may increase the data flow on the Litecoin Network and could either &ldquo;bloat&rdquo; the size of the Litecoin Blockchain or slow confirmation
times. At this time, such projects remain in early stages and have not been materially integrated into the Litecoin Blockchain or the
Litecoin Network.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
May 2022, a Litecoin Network upgrade incorporated MimbleWimble, an additional encryption feature. MimbleWimble serves two purposes: (i)
concealing the transacted amount of Litecoin and (ii) detecting fraudulent activity if the transaction amount were changed while being
processed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

<!-- Field: Page; Sequence: 70; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->65<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Forms of Attack Against
the Litecoin Network </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All networked systems are
vulnerable to various kinds of attacks. As with any computer network, the Litecoin Network contains certain flaws. For example, the Litecoin
Network is currently vulnerable to a &ldquo;51% attack&rdquo; where, if a mining pool were to gain control of more than 50% of the hash
rate for a digital asset, a malicious actor would be able to gain full control of the network and the ability to manipulate the Litecoin
Blockchain. As of the date of this Prospectus, the top three largest mining pools controlled over 50% of the hash rate of the Litecoin
Network. Any future attacks on the Litecoin Network could negatively impact the perception of the Litecoin Network, the value of Litecoin,
and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, many digital
asset networks have been subjected to a number of denial of service attacks, which has led to temporary delays in block creation and in
the transfer of digital assets. Any similar attacks on the Litecoin Network that impact the ability to transfer LTC could have a material
adverse effect on the price of LTC and the value of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For additional information,
see the &ldquo;<I>Risk Factors</I>&rdquo; section of this Prospectus.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Market Participants</P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Miners</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">Miners
range from LTC enthusiasts to professional mining operations that design and build dedicated machines and data centers, including mining
pools, which are groups of miners that act cohesively and combine their processing power to solve blocks (in the case of proof-of-work)
or stake coins (in the case of proof-of-stake). When a pool mines a new block, the pool operator receives the LTC and, after taking a
nominal fee, splits the resulting reward among the pool participants based on the processing power each of them contributed to mine such
block. Mining pools provide participants with access to smaller, but steadier and more frequent, LTC payouts. </FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Investment and Speculative
Sector</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">This
sector includes the investment and trading activities of both private and professional investors and speculators. Historically, larger
financial services institutions are publicly reported to have limited involvement in investment and trading in digital assets, although
the participation landscape is beginning to change. Currently, there is relatively limited use of digital assets in the retail and commercial
marketplace in comparison to relatively extensive use by speculators, and a significant portion of demand for digital assets is generated
by speculators and investors seeking to profit from the short- or long-term holding of digital assets.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Retail Sector</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
retail sector includes users transacting in direct peer-to-peer LTC transactions through the direct sending of LTC over the Litecoin Network.
The retail sector also includes transactions in which consumers pay for goods or services with LTC through direct transactions or third-party
service providers such as BitPay, Coinbase and GoCoin. While the use of bitcoin to purchase goods and services from commercial or service
business is developing, LTC has not yet been accepted in the same manner.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Service Sector</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">This
sector includes companies that provide a variety of services including the buying, selling, payment processing and storing of LTC. For
example, Coinbase, Crypto.com, Kraken, and LMAX Digital are some of the largest digital asset trading platforms by volume traded. ________,
the Custodian for the Trust, is a digital asset custodian that provides custodial accounts that store LTC for users. As the Litecoin Network
continues to grow in acceptance, it is anticipated that service providers will expand the currently available range of services and that
additional parties will enter the service sector for the Litecoin Network.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B></B></P>

<!-- Field: Page; Sequence: 71; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->66<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B>Competition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">Thousands
of digital assets, as tracked by CoinMarketCap.com as of ________, 202_, have been developed since the inception of bitcoin, which is
currently the most developed digital asset because of the length of time it has been in existence, the investment in the infrastructure
that supports it, and the network of individuals and entities that are using bitcoin in transactions. While LTC has enjoyed some success
in its limited history, the aggregate value of outstanding LTC is smaller than that of bitcoin and Ethereum and may be eclipsed by the
more rapid development of other digital assets. Some industry groups are also creating private, permissioned blockchain versions of digital
assets. For example, J.P. Morgan and others are developing an open source platform called Quorum, which is described as a version of Ethereum
designed for use by the financial services industry. Similar events may occur with LTC.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Regulation of Digital Assets</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
digital assets have grown in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies (including
FinCEN, OFAC, SEC, CFTC, the Financial Industry Regulatory Authority (&ldquo;FINRA&rdquo;), the Consumer Financial Protection Bureau (&ldquo;CFPB&rdquo;),
the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation, the IRS, the Office of the Comptroller
of the Currency, the Federal Deposit Insurance Corporation, the Federal Reserve and state financial institution and securities regulators)
have been examining the operations of digital asset networks, digital asset users and the Digital asset markets, with particular focus
on the extent to which digital assets can be used to launder the proceeds of illegal activities, evade sanctions or fund criminal or terrorist
enterprises and the safety and soundness of trading platforms and other service providers that hold or custody digital assets for users.
Many of these state and federal agencies have issued consumer advisories regarding the risks posed by digital assets to investors. President
Biden&rsquo;s March 9, 2022 Executive Order, asserting that technological advances and the rapid growth of the digital asset markets &ldquo;necessitate
an evaluation and alignment of the United States Government approach to digital assets,&rdquo; signals an ongoing focus on digital asset
policy and regulation in the United States. A number of reports issued pursuant to the Executive Order have focused on various risks related
to the digital asset ecosystem, and have recommended additional legislation and regulatory oversight. In addition, federal and state agencies,
and other countries and international bodies have issued rules or guidance about the treatment of digital asset transactions or requirements
for businesses engaged in digital asset activity. Moreover, the failure of FTX Trading Ltd. (&ldquo;FTX&rdquo;) in November 2022 and the
resulting market turmoil substantially increased regulatory scrutiny in the United States and globally and led to SEC and criminal investigations,
enforcement actions and other regulatory activity across the digital asset ecosystem.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition, the SEC, U.S. state securities regulators and several foreign governments have issued warnings and instituted legal proceedings
in which they argue that certain digital assets may be classified as securities and that both those digital assets and any related initial
coin offerings or other primary and secondary market transactions are subject to securities regulations. For example, in June 2023, the
SEC brought charges against Binance and Coinbase, and in November 2023, the SEC brought charges against Kraken, alleging that they operated
unregistered securities exchanges, brokerages and clearing agencies. In its complaints, the SEC asserted that several digital assets are
securities under the federal securities laws. The outcomes of these proceedings, as well as ongoing and future regulatory actions, have
had a material adverse effect on the digital asset industry as a whole and on the price of LTC, and may alter, perhaps to a materially
adverse extent, the nature of an investment in the Shares and/or the ability of the Trust to continue to operate. Additionally, U.S. state
and federal, and foreign regulators and legislatures have taken action against virtual currency businesses or enacted restrictive regimes
in response to adverse publicity arising from hacks, consumer harm, or criminal activity stemming from virtual currency activity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
August 2021, the chair of the SEC stated that he believed investors using digital asset trading platforms are not adequately protected,
and that activities on the platforms can implicate the securities laws, commodities laws and banking laws, raising a number of issues
related to protecting investors and consumers, guarding against illicit activity, and ensuring financial stability. The chair expressed
a need for the SEC to have additional authorities to prevent transactions, products, and platforms from &ldquo;falling between regulatory
cracks,&rdquo; as well as for more resources to protect investors in &ldquo;this growing and volatile sector.&rdquo; The chair called
for federal legislation centering on digital asset trading, lending, and decentralized finance platforms, seeking &ldquo;additional plenary
authority&rdquo; to write rules for digital asset trading and lending. However, the chair has subsequently stated that the SEC already
has explicit authority under existing laws to regulate the digital asset sector and several enforcement actions were filed against digital
asset trading platforms during the first half of 2023. In particular, in June 2023, the SEC brought enforcement actions against Binance
and Coinbase, two of the largest digital asset trading platforms, alleging that they operated unregistered securities exchanges, brokerages
and clearing agencies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
SEC has taken steps to interpret its existing authorities as covering various digital asset activities. For example, the SEC has recently
proposed amendments to the custody rules under Rule 406(4)-2 of the Investment Advisers Act. The proposed rule changes would amend the
definition of a &ldquo;qualified custodian&rdquo; under Rule 206(4)-2(d)(6) and expand the current custody rule under Rule 406(4)-2 to
cover digital assets and related advisory activities. If enacted as proposed, these rules would likely impose additional regulatory requirements
with respect to the custody and storage of digital assets and could lead to additional regulatory oversight of the digital asset ecosystem
more broadly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

<!-- Field: Page; Sequence: 72; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->67<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Various
foreign jurisdictions have, and may continue to, in the near future, adopt laws, regulations or directives that affect a digital asset
network, the digital asset markets, and their users, particularly digital asset trading platforms and service providers that fall within
such jurisdictions&rsquo; regulatory scope. For example:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">China has made transacting in cryptocurrencies
illegal for Chinese citizens in mainland China, and additional restrictions may follow. China has banned initial coin offerings and there
have been reports that Chinese regulators have taken action to shut down a number of China-based digital asset trading platforms.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">South Korea determined to amend its Financial
Information Act in March 2020 to require virtual asset service providers to register and comply with its AML and counter-terrorism funding
framework. These measures also provide the government with the authority to close digital asset trading platforms that do not comply with
specified processes. South Korea has also banned initial coin offerings.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                         </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The Reserve Bank of India in April 2018 banned
the entities it regulates from providing services to any individuals or business entities dealing with or settling digital assets. In
March 2020, this ban was overturned in the Indian Supreme Court, although the Reserve Bank of India is currently challenging this ruling.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                          </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The United Kingdom&rsquo;s Financial Conduct
Authority published final rules in October 2020 banning the sale of derivatives and exchange-traded notes that reference certain types
of digital assets, contending that they are &ldquo;ill-suited&rdquo; to retail investors citing extreme volatility, valuation challenges
and association with financial crime. A new law, the Financial Services and Markets Act 2023 (&ldquo;FSMA&rdquo;), received royal assent
in June 2023. The FSMA brings digital asset activities within the scope of existing laws governing financial institutions, markets and
assets.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The Parliament of the European Union approved
the text of the Markets in Crypto-Assets Regulation (&ldquo;MiCA&rdquo;) in April 2023, establishing a regulatory framework for digital
asset services across the European Union. MiCA is intended to serve as a comprehensive regulation of digital asset markets and imposes
various obligations on digital asset issuers and service providers. The main aims of MiCA are industry regulation, consumer protection,
prevention of market abuse and upholding the integrity of digital asset markets. MiCA was formally approved by the European Union&rsquo;s
member states in 2023. Certain parts of MiCA became effective as of June 2024 and the remainder will start to apply as of December 2024.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-weight: normal; background-color: white">There
remains significant uncertainty regarding foreign governments&rsquo; future actions with respect to the regulation of digital assets and
digital asset trading platforms. Such laws, regulations or directives may conflict with those of the United States and may negatively
impact the acceptance of LTC by users, merchants and service providers outside the United States and may therefore impede the growth or
sustainability of the Litecoin ecosystem in the United States and globally, or otherwise negatively affect the value of LTC held by the
Trust. The effect of any future regulatory change on the Trust or the LTC held by the Trust is impossible to predict, but such change
could be substantial and adverse to the Trust and the value of the Shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_008"></A>ACTIVITIES
OF THE TRUST</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The activities of the Trust
will be limited to (1) issuing and redeeming Baskets in exchange for cash deposited by the Authorized Participants, (2) transferring actual
LTC as necessary to cover the Sponsor&rsquo;s Fee and selling LTC as necessary to pay Additional Trust Expenses, (3) causing the Sponsor
to sell LTC and transferring cash proceeds in exchange for Baskets surrendered for redemption by the Authorized Participants, (4) causing
the Sponsor to sell LTC on the termination of the Trust and (5) engaging in all administrative and custodial procedures necessary to accomplish
such activities in accordance with the provisions of the Trust Agreement. The Trust will not be actively managed. It will not engage in
any activities designed to obtain a profit from, or to ameliorate losses caused by, changes in the market prices of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>Trust Objective</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The investment objective of
the Trust is for the Shares to reflect the performance of the value of a LTC as represented by the Index, less the Trust&rsquo;s liabilities
and expenses. The Shares are designed to provide investors with a cost-effective and convenient way to invest in LTC. A substantial direct
investment in LTC may require expensive and sometimes complicated arrangements in connection with the acquisition, security and safekeeping
of the LTC and may involve the payment of substantial fees to acquire such LTC from third-party facilitators through cash payments of
U.S. dollars. Although the Shares will not be the exact equivalent of a direct investment in LTC, they provide investors with an alternative
that constitutes a relatively cost-effective way to participate in LTC markets through the securities market. Because the value of the
Shares is tied to the value of the LTC held by the Trust, it is important to understand the investment attributes of, and the market for,
LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 73; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->68<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>Strategy
Behind the Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares are intended to
offer investors an opportunity to participate in LTC markets through an investment in securities. The logistics of accepting, transferring
and safekeeping of LTC are dealt with by the Sponsor, Administrator and Custodians, and the related expenses are built into the price
of the Shares. Therefore, Shareholders do not have additional tasks or costs in addition to those associated with investing in any other
publicly traded security.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares are intended to
provide institutional and retail investors with a simple and cost-effective means, with minimal credit risk, of gaining investment benefits
similar to those of directly holding LTC. The Shares offer an investment that is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Easily Accessible and Relatively Cost Efficient</I>. Investors in the Shares can also directly access LTC markets through the LTC Exchange Market. The Sponsor believes that investors will be able to more effectively implement strategic and tactical asset allocation strategies that use LTC by using the Shares instead of directly purchasing and holding LTC, and for many investors, transaction costs related to the Shares will be lower than those associated with the direct purchase, storage and safekeeping of LTC.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Exchange Traded and Transparent</I>. The Shares will be listed and traded on Nasdaq, providing investors with an efficient means to implement various investment strategies. Upon effectiveness of the registration statement of which this prospectus is a part, the Shares will be eligible for margin accounts and will be backed by the assets of the Trust. The Trust will not hold or employ any derivative securities. Furthermore, the value of the Trust&rsquo;s assets will be reported each day on the Sponsor&rsquo;s website at https://coinshares.com/us/etf/____/.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Minimal Credit Risk</I>. The Shares represent an interest in actual LTC owned by the Trust. The Trust&rsquo;s LTC in the Custodians&rsquo; possession are not subject to borrowing arrangements with third parties or counterparty or credit risks.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Safekeeping System</I>. The Custodians have been appointed to store and safekeep the LTC for the Trust using a segregated and therefore diversified safekeeping storage system. The hardware, software, administration and continued technological development that are used by the Custodians may not be available or cost-effective for many investors.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust differentiates itself
from competing digital currency financial vehicles, to the extent that such digital currency financial vehicles may develop, in the following
ways:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Custodians</I>. The Custodians that hold the private keys for the digital wallets of the Trust are ________, ________and ________.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Enhanced Security</I>. The Custodians and Sponsor have put enhanced security procedures in place that require one or more employees of the Sponsor to verify each transaction, with each employee having a unique verification method. The Custodians and the Sponsor have put additional similar enhanced security procedures in place to protect against the malicious movement of LTC.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Custodian Audits</I>. The Custodians have each agreed to allow the Trust and the Sponsor to take any necessary steps to verify that satisfactory internal control systems and procedures are in place, and to visit and inspect the systems on which the Trust&rsquo;s LTC are held. The Custodians are also obligated to provide the Trust and Sponsor with both independent and audit reports on the LTC Account.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Directly Held LTC</I>. The Trust directly owns actual LTC held through the Custodians. The direct ownership of LTC is not subject to counterparty or credit risks. This may differ from other digital currency financial vehicles that provide LTC exposure through other means, such as the use of financial or derivative instruments.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Structure</I>. The Shares intend to track the performance of the value of a LTC as represented by the Index, less the Trust&rsquo;s liabilities and expenses. The Trust seeks to achieve this objective by directly owning LTC. This structure may be different from other digital currency financial vehicles that seek to track the performance of the price of LTC or other digital currencies through the use of futures contracts or derivative instruments.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Sponsor&rsquo;s Fee</I>. The relatively low level of the Sponsor&rsquo;s Fee that is paid to the Sponsor is a competitive factor that may influence an investor&rsquo;s decision to purchase Shares.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 74; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->69<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>Secondary
Market Trading</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While the Trust&rsquo;s investment
objective is for the Shares to reflect the performance of the value of a LTC as represented by the Index, less the Trust&rsquo;s liabilities
and expenses, the Shares may trade in the secondary market at prices that are lower or higher than the LTC Holdings per Share. The amount
of the discount or premium in the trading price relative to the LTC Holdings per Share may be influenced by non-concurrent trading hours
and liquidity between the secondary market and larger LTC Exchanges in the LTC Exchange Market. While the Shares will be listed and traded
on Nasdaq from 9:30 a.m. until 4:00 p.m. ET, liquidity in the LTC Exchange Market may fluctuate depending upon the volume and availability
of larger LTC Exchanges. As a result, during periods in which LTC Exchange Market liquidity is limited or a major LTC Exchange is off-line,
trading spreads, and the resulting premium or discount, on the Shares may widen.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>Trust Expenses</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s only ordinary
recurring expense is expected to be the Sponsor&rsquo;s Fee. The Sponsor&rsquo;s Fee will be determined by applying a 0.25% annual rate
to the Trust&rsquo;s LTC Holdings, as calculated and published by the Sponsor or its delegates, and converting the resulting U.S. dollar
amount into LTC at the LTC Index Price, on a daily basis. The rate of the Sponsor&rsquo;s Fee is subject to the sole discretion of the
Sponsor. Payments of the Sponsor&rsquo;s Fee will occur weekly in arrears. To pay the Sponsor&rsquo;s Fee, the Custodians will, when directed
by the Sponsor, (i) withdraw from the LTC Account the number of LTC equal to the accrued but unpaid Sponsor&rsquo;s Fee, determined as
described above and (ii) transfer such LTC to an account maintained by the Custodians for the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor, from time to
time, may temporarily waive all or a portion of the Sponsor&rsquo;s Fee at its discretion for stated periods of time. For a 3-month period
commencing on the day the Trust&rsquo;s Shares are initially listed on the Exchange, the Sponsor intends to waive the entire Sponsor&rsquo;s
Fee. If the Sponsor decides to further waive all or a portion of the Sponsor&rsquo;s Fee, Shareholders will be notified in a prospectus
supplement and/or a current report on Form 8-K or in its annual or quarterly reports. As consideration for its receipt of the Sponsor&rsquo;s
Fee, the Sponsor has assumed the obligation to pay the Sponsor-paid Expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, the Sponsor may,
in its sole discretion, agree to rebate all or a portion of the Sponsor&rsquo;s Fee attributable to Shares held by certain institutional
investors subject to minimum Share holding and lock up requirements as determined by the Sponsor to foster stability in the Trust&rsquo;s
asset levels. Any such rebate will be subject to negotiation and written agreement between the Sponsor and the investor on a case-by-case
basis. The Sponsor is under no obligation to provide any rebates of the Sponsor&rsquo;s Fee. Neither the Trust nor the Trustee will be
a party to any Sponsor&rsquo;s Fee rebate arrangements negotiated by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor has not assumed
the obligation to pay Additional Trust Expenses. If Additional Trust Expenses are incurred, the Sponsor or its delegate will cause the
Trust (or its delegate) to convert LTC into U.S. dollars at the price available through the Prime Broker&rsquo;s ________ Prime service
(less applicable trading fees) through the Trading Platform which the Sponsor is able to obtain using commercially reasonable efforts.
The number of LTC represented by a Share will decline each time the Trust pays Additional Trust Expenses by transferring or selling LTC.
See &ldquo;Expenses.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>Impact of
Trust Expenses on the Trust&rsquo;s LTC Holdings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will pay the Sponsor&rsquo;s
Fee to the Sponsor in LTC. In addition, the Trust will sell LTC to raise the funds needed for the payment of any Additional Trust Expenses.
The purchase price received as consideration for such sales will be the Trust&rsquo;s sole source of funds to cover its Additional Trust
Expenses. The Trust will not engage in any activity designed to derive a profit from changes in the prices of LTC. The Trust is obligated
to convert any cash contributed to LTC as soon as practicable, except to the extent necessary to pay expenses. Because the number of LTC
held by the Trust will decrease when LTC are used to pay the Sponsor&rsquo;s Fee or sold to permit the payment of Additional Trust Expenses,
the number of LTC represented by each Share will decrease over the life of the Trust. Accordingly, the Shareholders will bear the cost
of the Sponsor&rsquo;s Fee and Additional Trust Expenses. New deposits of LTC into the LTC Account that are purchased by the Trust in
connection with additional new Baskets issued by the Trust will not reverse this trend.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Purchase and Sale of LTC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because the Trust will conduct
creations and redemptions of Shares for cash, it will be responsible for purchasing and selling LTC in connection with those creation
and redemption orders. The Trust may also be required to sell LTC to pay certain extraordinary, non-recurring expenses that are not assumed
by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor, on behalf of
the Trust, will typically seek to buy and sell LTC at a price as close to the Index as practical. When choosing between potential counterparties,
the Sponsor may consider factors other than simply the most favorable price. However, the most favorable price will be the predominant
factor in determining the counterparty with which the Sponsor effectuates the contemplated transaction. Other factors that the Sponsor
may consider include the size of the proposed order, as well as a counterparty&rsquo;s execution capabilities, reliability and responsiveness.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 75; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->70<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Authorized Participants
will deliver only cash to create Shares and will receive only cash when redeeming Shares. Further, Authorized Participants involved in
a creation or redemption order will not directly or indirectly purchase, hold, deliver, or receive LTC as part of the creation or redemption
process or otherwise direct the Trust or a third party with respect to purchasing, holding, delivering, or receiving LTC as part of the
creation or redemption process for such order. Additionally, the Trust will create Shares by receiving LTC from a third party that is
not the Authorized Participant involved in the order, and the Sponsor, on behalf of the Trust&mdash;not the Authorized Participant&mdash;is
responsible for selecting the third party to deliver the LTC. Further, the third party will not be acting as an agent of the Authorized
Participant with respect to the delivery of the LTC to the Trust or acting at the direction of the Authorized Participant with respect
to the delivery of the LTC to the Trust. Additionally, the Trust will redeem Shares by delivering LTC to a third party that is not the
Authorized Participant and the Sponsor, on behalf of the Trust&mdash;not the Authorized Participant&mdash;is responsible for selecting
the third party to receive the LTC. Further, the third party will not be acting as an agent of the Authorized Participant with respect
to the receipt of the LTC from the Trust or acting at the direction of the Authorized Participant with respect to the receipt of the LTC
from the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>LTC Trading Counterparties</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor, on behalf of
the Trust, is responsible for acquiring LTC from a LTC trading counterparty that has been approved by the Sponsor (each, a LTC Trading
Counterparty). _______ (the &ldquo;Prime Broker&rdquo;) is the trust&rsquo;s initial LTC Trading Counterparty. The LTC Trading Counterparties
with which the Sponsor will engage in LTC transactions are unaffiliated third parties and all transactions will be done on an arm&rsquo;s-length
basis. LTC Trading Counterparties are not required to have an account with the Custodians.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">When seeking to purchase or
sell LTC on behalf of the Trust, the Sponsor will typically seek to buy and sell LTC at a price as close to the Index as practical from
any of the approved LTC Trading Counterparties. Upon notification that the Trust needs to purchase or sell LTC, the Sponsor will reach
out to various LTC Trading Counterparties and ask them for a quote regarding the terms at which they would be willing to execute the contemplated
transaction. The Sponsor then determines the LTC Trading Counterparty with which it wishes to transact and records the rationale for that
determination. Once agreed upon, the transaction will generally occur on an &ldquo;over-the-counter&rdquo; basis. With respect to purchases
and sales of LTC conducted through the Prime Broker, the transfers of LTC will be recorded off-chain as book entries on the books and
records of the Prime Broker. In the event that the Trust engages other LTC Trading Counterparties, transfers of LTC may be conducted as
&ldquo;on-chain&rdquo; transactions represented on the Litecoin Blockchain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor maintains a process
for approving and monitoring LTC Trading Counterparties. All LTC Trading Counterparties must be approved by the Sponsor before the Trust
will engage in transactions with the entity. The Sponsor continuously reviews all approved LTC Trading Counterparties and will reject
the approval of any previously approved LTC Trading Counterparty if new information arises regarding the entity that puts the appropriateness
of that entity as an approved LTC trading counterparty in doubt. In considering which LTC Trading Counterparties to approve, the Sponsor
has instituted policies and procedures that include, but are not limited to those processes described in &ldquo;Risk Factors &ndash; Risk
Factors Related to the Litecoin Blockchain and LTC &ndash; Anonymity and illicit financing risk.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Trade Credit</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Trust&rsquo;s
creation and redemption processes, Authorized Participants and the Trust do not settle the cash for creation or redemption orders until
the day after the order is placed, while the Trust makes purchases and sales of LTC in connection with creations and redemption orders
on the day of the order. To facilitate this settlement of creation and redemption orders, the Trust will borrow LTC or cash as Trade Credit
from the Trade Credit Lender on a short-term basis pursuant to the Trade Financing Agreement to cover the short-term transactional needs
of the Trust. Pursuant to the Authorized Participant Agreement, the Trust does not bear the ultimate cost of the Trade Credits or the
Trade Financing Agreement as those expenses are borne by the Authorized Participants during the order process. Due to the timing of creation
and redemption procedures of the Trust, the Sponsor anticipates that any agreements with subsequent LTC Trading Counterparties will require
similar trade financing arrangements to settle LTC and cash transactions on the day of order placement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the case of a purchase
of LTC with the Prime Broker, the extension of Trade Credits allows the Trust to purchase LTC through the Prime Broker on the date the
Trust wishes to effectuate the transaction (for instance, on the evening of the day when an order to create Shares is received), with
such LTC being deposited in the Trust&rsquo;s Trading Account. On the day following a trade when Trade Credits have been utilized, the
Trust uses cash (for instance, from the Authorized Participant who submitted the creation order) to repay the Trade Credits borrowed from
the Trade Credit Lender. The LTC purchased by the Trust is then swept from the Trust&rsquo;s Trading Account with the Prime Broker to
the Trust&rsquo;s Vault Account with the ________ Custodian pursuant to a regular end-of-day sweep process. Transfers of LTC into the
Trust&rsquo;s Trading Account are off-chain transactions and transfers from the Trust&rsquo;s Trading Account to the Vault Accounts are
&ldquo;on-chain&rdquo; transactions represented on the blockchain. Any financing fee owed to the Trade Credit Lender is deemed part of
trade execution costs and embedded in the trade price for each transaction with the Authorized Participant. Under normal market conditions,
the Sponsor&rsquo;s policy is to keep at least 95% of the Trust&rsquo;s LTC in the Vault Accounts and no more than 5% of the Trust&rsquo;s
LTC in the Trading Account to cover the reasonably anticipated short-term transaction needs of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 76; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->71<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the case of a sale of LTC,
the Trust enters into a transaction to sell LTC through LTC Trading Counterparties for cash, which is generally deposited directly with
the Cash Custodian. For LTC sold through the Prime Broker, the Trust&rsquo;s Trading Account with the Prime Broker may not be funded with
LTC on the date the Trust wishes to effectuate the transaction (for instance, on the evening of a day when an order to redeem Shares is
received) because the LTC remains in the Vault Accounts with the Custodians. In those circumstances the Trust may borrow Trade Credits
in the form of LTC from the Trade Credit Lender, which allows the Trust to sell LTC through the Prime Broker at the desired time, and
the cash proceeds are deposited in the Trust&rsquo;s Trading Account with the Prime Broker. On the business day following the trade, the
Trust will use the LTC that is moved from the Vault Accounts with the Custodians to the Trading Account with the Prime Broker to repay
the Trade Credits borrowed from the Trade Credit Lender. Transfers of LTC from the Vault Accounts to the Trading Account are &ldquo;on-chain&rdquo;
transactions represented on the Litecoin Blockchain. Any financing fee owed to the Trade Credit Lender is deemed part of trade execution
costs and embedded in the trade price for each transaction with the Authorized Participant.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_009"></A>USE OF THE
<FONT STYLE="text-transform: uppercase">Compass Crypto Reference Index litecoin - 4pm NY Time</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will determine the
LTC Index Price and value its Shares daily based on the value of LTC as reflected by the Index. The Index is calculated at the end of
every hour and published 15 minutes after the end of the hour. The Index currently uses substantially the same methodology as the Compass
Crypto Reference Index Litecoin (&ldquo;LRR&rdquo;), including utilizing the same Selected Exchanges (defined below), which is the underlying
rate to determine the settlement of Compass Crypto LTC futures contracts, except that the Index is calculated as of 4:00 p.m. New York
time, whereas the LRR is calculated as of 4:00 p.m. London time. The administrator of the Index is Compass Financial Technologies (the
&ldquo;Benchmark Administrator&rdquo;). The Trust also uses the LTC Index Price to calculate its &ldquo;LTC Holdings,&rdquo; which is
the aggregate U.S. dollar value of LTC in the Trust, based on the LTC Index Price, less its liabilities and expenses. &ldquo;LTC Holdings
per Share&rdquo; is calculated by dividing LTC Holdings by the number of Shares currently outstanding. LTC Holdings and LTC Holdings per
Share are not measures calculated in accordance with GAAP. LTC Holdings is not intended to be a substitute for the Trust&rsquo;s NAV calculated
in accordance with GAAP, and LTC Holdings per Share is not intended to be a substitute for the Trust&rsquo;s NAV per Share calculated
in accordance with GAAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Index was designed to
provide institutional investors with independent and robust LTC reference prices. It serves as a once-a-day benchmark rate of the U.S.
dollar price of LTC (LTC-USD), calculated as of 4:00 p.m. ET. The daily price level of the Index is based on the historical tick-by-tick
trades sourced directly from eligible exchanges. Eligible Exchanges must offer LTC against USD markets and be approved by the Compass
Crypto Reference Indices Steering Committee. The current list of eligible LTC Exchanges used in Index calculations are Bitstamp, Bitfinex,
Coinbase, Gemini, Kraken and LMAX. A dynamic, fully-systematic algorithm selects among the list of eligible exchanges the trading venues
which will contribute to the computation of the Index for the coming month. On the last day of each month, the algorithm computes the
last 60 days&rsquo; average volume for each eligible exchange where LTC is traded against USD. For the avoidance of doubt, the last data
used in the computation refer to the day preceding the last business day of the month. The selection process keeps exchanges with a corresponding
average volume representing at least 5% of the total aggregated volume over all eligible exchanges for LTC. Only trades from the selected
LTC Exchanges (the &ldquo;Selected Exchanges&rdquo;) will be considered in the Index computation for the coming month.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each day, the Index is calculated
based on the collection of all observable transactions of all Selected Exchanges. The calculation methodology of the Index follow the
following steps:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">For each Selected Exchange, a dataset of all
USD denominated trades occurring during the hourly time period is created.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Each dataset is divided in twelve (12) time-equally
sized partitions of trade records.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Volume-weighted median of trade prices are calculated
for each partition and each Selected Exchange.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">For each partition, if the absolute percentage
deviation of the volume-weighted median price of a Selected Exchange from the median price computed on all Selected Exchanges is above
5%, the data of that exchange is considered anomalous. The exchange is then excluded from the Selected Exchanges for this partition.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">For each partition, a &ldquo;partition reference
price&rdquo; is computed as the exchange volume weighted average over such partition of the volume-weighted median prices computed in
the step above.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The final Index level is given by the arithmetic
average of the computed partition reference price.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Data is identified as erroneous
and therefore discarded when reported in the wrong format (e.g., trade price or trade size that are non-numeric, non-positive or in a
format that deviates from the expected one). The transactions that cannot be retrieved by the Index calculation time are disregarded.
If no transactions occur or can be retrieved for any exchange on a specific partition, this exchange is disregarded for the calculation
of the Index on that day for the specific hour. Any delay or absence of trade data is reported to the Compass Crypto Reference Indices
Steering Committee and the selected course of action is formally announced. The calculation of the Index is obstructed: (i) when there
are no reported transactions; (ii) when all transactions are rejected as suspicious on all of the Selected Exchanges; (iii) when no data
is provided from the data provider; or (iv) due to any other unforeseen events. In the event of failure of the data provider to deliver
relevant data, the Compass Crypto Reference Indices Steering Committee will do its best effort to determine relevant LTC price from alternative
providers that are readily available. In this scenario, Index levels will be based on the LTC price determined by the Compass Crypto Reference
Indices Steering Committee. If no transactions occur or can be retrieved for more than three (3) consecutive business days, a Compass
Crypto Reference Indices Steering Committee meeting will be called to determine the most appropriate action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 77; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->72<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Even though the process of
Index calculation is completely automated and pre-defined, an error can be discovered after the publication of the Index. In case of a
material error, the Index will be redetermined and the Index clients will be notified about the error and the date of the publication
of the redetermined Index. An error is considered material on the basis of its size, the dates of its discovery and of its occurrence,
and the impact of the Index redetermination on the users. The discovery of any error is reported to Compass Crypto Reference Indices Steering
Committee. In case a material error is discovered, and the Benchmark Administrator recognizes a manipulation or an attempted manipulation
of the Index level or the input data, it will be reported to the regulator.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Compass Financial Technologies
has established governance functions to review and provide challenges on all aspects of the Indices determination process. Governance
functions are managed by the Compass Oversight Committee and by the Compass Crypto Reference Indices Steering Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Compass Oversight Committee
oversees all areas of the benchmark determination processes. It is responsible for supervising and controlling the Index operations team
on all Compass Indices. It is also responsible for: (i) periodic review of incidents; (ii) making final decisions in case the Index operations
team are not capable or allowed to take decisions; (iii) defining and implementing organization procedures for the Index operations team;
(iv) defining and overseeing measures that allow for mitigation of operational risks; (v) supervising internal or external audit results;
and (vi) the implementation and supervision of the potential codes of conduct that have to be implemented. The Committee is comprised
of senior representatives of Compass Financial Technologies and external industry experts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Compass Crypto Reference
Indices Steering Committee is responsible for: (i) determining the calculation methodology and the rules governing the publication of
the Compass Crypto Reference Indices; (ii) making periodic reviews of the Compass Crypto Reference Indices to validate the robustness
of the methodology and to analyze the impact of methodology changes; (iii) organizing consultation with Compass Crypto Reference Indices
stakeholders if necessary; and (iv) ensuring that Compass Crypto Reference Indices offers a reliable and representative view of the market.
The Compass Crypto Reference Indices Steering Committee is composed of members from Compass and may include individuals or representatives
of companies, academics, external counsels, or market participants. The Compass Crypto Reference Indices Steering Committee assembles
once a year in April. However, at the request of a member of the committee, the Committee may meet on any other day of the year to discuss
potential &ldquo;market emergency&rdquo; and &ldquo;force majeure&rdquo; events or any other situation, which makes an extraordinary meeting
necessary. All Committee decisions will be published without delay following the Committee decision.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Index data and the description
of the Index are based on information made publicly available by the Benchmark Administrator on its website at https://www.compass-ft.com
and will also be available through online information services, such as Bloomberg and Refinitiv. None of the information on the Benchmark
Administrator&rsquo;s website is incorporated by reference into this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of ________, 202_, the
Selected Exchanges included in the Index are ____, ____, ____, ____, ____and ____.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Selected Exchanges that
contribute transaction data to the Index with the aggregate volumes traded on their respective LTC-USD markets over the preceding four
calendar quarters are listed in the table below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Aggregate Trading Volume of LTC-USD Markets of Index Selected Exchanges</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 20%; border-left: black 1pt solid; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 19%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 14%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 2%; border-right: black 1pt solid; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Period</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">202_ Q4 </FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">202_ Q1 </FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-left: 3pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">202_ Q2 </FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">202_ Q3 </FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The 12* highest volume LTC-USD
markets operated by LTC trading platforms registered aggregate trading volumes as shown by the table below in the previous four calendar
quarters:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="border: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Aggregate Trading Volume of Top 12* Highest Volume LTC-USD LTC Trading Platforms</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 22%; border-left: black 1pt solid; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 18%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 18%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 18%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 24%; border-right: black 1pt solid; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Period</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Volume ($) </FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><BR>
*Platforms include all Selected Exchanges and ________, ________, ________, ________ and ________.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 78; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->73<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The market share for LTC-USD
trading of the Selected Exchanges over the past four calendar quarters is shown in the table below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 3pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>LTC Trading Platform Market Share of LTC-USD Trading</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 23%; border-left: black 1pt solid; padding-left: 3pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 11%; border-right: black 1pt solid; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-left: black 1pt solid; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Period</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>____</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>____</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>____</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>____</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>____</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>____</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Others**</B></FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">202_ Q4 </FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">202_ Q1 </FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">202_ Q2 </FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-left: 3pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">202_ Q3 </FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; border-right: black 1pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">________%</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Index is based on written
and transparent rules and procedures with the purpose of minimizing as much as possible the exercise of discretion and expert judgment.
The Index is built from input data that is not interpolated, extrapolated or adjusted. In case of lack of data, the last available data
is employed. Nevertheless, the exercise of expert judgment may become necessary in case of errors and Index restatements, delayed and
missing data, hard forks, airdrops, or unexpected situations arising from market stress. In the event that expert judgment is exercised,
this will be done by resorting to the written procedures reported in the methodology and by communicating the decisions taken to the Compass
Crypto Reference Indices Steering Committee and the Internal Compliance Function in order to prevent conflicts of interest and to protect
the integrity and the independence of the Index determinations. In addition, the interest of the Index users and the market integrity
will be taken into account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>COMPASS FINANCIAL TECHNOLOGIES
DATA IS USED UNDER LICENSE AS A SOURCE OF INFORMATION FOR THE TRUST&rsquo;S PRODUCTS. COMPASS FINANCIAL TECHNOLOGIES, ITS AGENTS AND LICENSORS
HAVE NO OTHER CONNECTION TO THE TRUST&rsquo;S PRODUCTS AND SERVICES AND DOES NOT SPONSOR, ENDORSE, RECOMMEND OR PROMOTE ANY OF THE TRUST&rsquo;S
PRODUCTS OR SERVICES. COMPASS FINANCIAL TECHNOLOGIES, ITS AGENTS AND LICENSORS HAVE NO OBLIGATION OR LIABILITY IN CONNECTION WITH THE
TRUST&rsquo;S PRODUCTS AND SERVICES. COMPASS FINANCIAL TECHNOLOGIES, ITS AGENTS AND LICENSORS DO NOT GUARANTEE THE ACCURACY AND/OR THE
COMPLETENESS OF ANY INDEX LICENSED TO THE TRUST AND SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Index methodology and
constituent digital asset trading platforms may be changed from time to time at the discretion of the Benchmark Administrator without
Shareholder approval. For example, if the Benchmark Administrator determines that there have been material efforts to manipulate the price
of LTC on a constituent digital asset trading platform or that the data feeds from such trading platform are unreliable, the Benchmark
Administrator may remove such trading platform for the Index methodology. To the extent that such changes to the methodology result in
a more limited set of constituent digital asset trading platforms, there is an increased risk that the price of LTC used in Trust&rsquo;s
calculation of NAV would deviate from the price quoted on digital asset trading platforms not included within the Index methodology. Shareholders
will be notified of changes to the Index methodology only if the Sponsor determines that such changes are material with respect to an
investment decision regarding the Shares. Once it has actual knowledge of material changes to the Index methodology, the Trust will notify
Shareholders in a prospectus supplement and/or a current report on Form 8-K or in its annual or quarterly reports.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_010"></A>CALCULATION
OF NAV</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares are valued on a
daily basis as of 4:00 p.m. ET. The value of LTC held by the Trust is determined based on the fair market value price for LTC determined
by the Benchmark Administrator.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s NAV is calculated
by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">taking the current market value of its LTC (determined as set forth below) and any other; and assets;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">subtracting any liabilities (including accrued by unpaid expenses). </FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s NAV per
Share is calculated by taking the Trust&rsquo;s NAV and dividing it by the total amount of Shares outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 79; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->74<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The LTC held by the Trust
will typically be valued based on the LTC Index Price. The Administrator calculates the NAV of the Trust once each business day. The end-of-day
LTC price is calculated using the LTC Index Price as of 4:00 p.m. ET. However, NAVs are not officially struck until later in the day (often
by 5:30 p.m. ET and almost always by 8:00 p.m. ET). The pause after 4:00 p.m. ET provides an opportunity for the Sponsor to detect, flag,
investigate, and correct unusual pricing should it occur. If the Sponsor determines in good faith that the Index does not reflect an accurate
LTC price, then the Sponsor will instruct the Benchmark Administrator to employ an alternative method to determine the fair value of the
Trust&rsquo;s assets. The Compass Crypto Reference Index Litecoin - 4pm NY Time shall constitute the Index, but if the Index is not available
or the Sponsor at its sole discretion determines the Index is unreliable (together a &ldquo;Fair Value Event&rdquo;), the Trust&rsquo;s
holdings may be fair valued in accordance with the fair value policies approved by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A Fair Value Event value determination
will be based on all available factors that the Sponsor deems relevant at the time of the determination, and may be based on analytical
values determined by the Sponsor using third-party valuation models.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Fair value policies approved
by the Sponsor will seek to determine the fair value price that the Trust might reasonably expect to receive from the current sale of
that asset or liability in an arm&rsquo;s-length transaction on the date on which the asset or liability is being valued. In the instance
of a Fair Value Event, the price set by the Trust&rsquo;s principal market as of 4:00 p.m. ET, on the valuation date would be utilized.
In the event the principal market price is not available or the Sponsor at its sole discretion determines the principal market valuation
is unreliable the Sponsor will use its best judgement to determine a good faith estimate of fair value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The LTC markets are generally
open on days when U.S. markets are closed, which means that the value of the LTC owned by the Trust could change on days when Shares cannot
be bought or sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Intraday Indicative Value
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In order to provide updated
information relating to the Trust for use by Shareholders and market professionals, the Sponsor will calculate and disseminate throughout
the core trading session on each business day an updated intraday indicative value (&ldquo;IIV&rdquo;). The IIV will be calculated by
using the prior day&rsquo;s closing NAV per Share of the Trust as a base and updating that value throughout the trading day.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The IIV disseminated during
the Exchange&rsquo;s core trading session hours should not be viewed as an actual real-time update of the NAV, because NAV is calculated
only once at the end of each trading day based on the relevant end-of-day value of the Trust&rsquo;s LTC. The IIV will be disseminated
on a per-Share basis every 15 seconds during regular Exchange core trading session hours of 9:30 a.m. ET to 4:00 p.m. ET. The Sponsor
will disseminate the IIV value through the facilities of relevant information processor and CQS High Speed Lines. In addition, the IIV
will be published on the Exchange&rsquo;s website and will be available through online information services such as Bloomberg and Reuters.
The IIV as of the time that the NAV is calculated on a given day may differ from the NAV for such day due to the differences in the time
window of trades used to calculate each price (the NAV uses a 60-minute window, whereas the IIV draws prices from the last trade on each
exchange in an effort to produce a relevant, real-time price).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There are many instances in
the market today where the IIV as of the time that the NAV is calculated on a given day and the NAV of an ETF for such day are subtly
different, whether due to the calculation methodology, market hours overlap or other factors. The Sponsor has seen limited or no negative
impact on trading, liquidity or other factors for exchange-traded funds in this situation. The Sponsor believes that the IIV will closely
track the globally integrated LTC price as reflected on the Selected Exchanges.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Dissemination of the IIV provides
additional information that is not otherwise available to the public and is useful to Shareholders and market professionals in connection
with the trading of the Shares on the Exchange. Shareholders and market professionals will be able throughout the trading day to compare
the market price of the Shares and the IIV. If the market price of the Shares diverges significantly from the IIV, market professionals
will have an incentive to execute arbitrage trades. For example, if the Trust appears to be trading at a discount compared to the IIV,
a market professional could buy Shares on the Exchange and sell short futures contracts. Such arbitrage trades can tighten the tracking
between the market price of the Shares and the IIV, and thus can be beneficial to all market participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Stock Splits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor reserves the right
to adjust the Share price of the Trust in the future to maintain convenient trading ranges for Shareholders in the secondary market. Any
adjustments would be accomplished through stock splits or reverse stock splits. Such splits would decrease (in the case of a split) or
increase (in the case of a reverse split) the proportionate NAV, but would have no effect on the net assets of the Trust or the proportionate
voting rights of Shareholders or the value of any Shareholder&rsquo;s investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 80; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->75<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Other Assets </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The fair value of any liquid
assets held by the Trust primarily in the form of cash is included in the determination of NAV.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Liabilities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The fair value of the Trust&rsquo;s
liabilities is included in the determination of NAV. These liabilities are expected generally to consist only of the Sponsor&rsquo;s Fee,
although liabilities may also include extraordinary expenses from time to time. See &ldquo;The Trust&mdash;The Trust&rsquo;s Fees and
Expenses.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Impact of Trust Expenses
on the Trust&rsquo;s NAV</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The amount of LTC represented
by the Shares will be reduced during the life of the Trust due to the transfer of the Trust&rsquo;s LTC to pay for the Sponsor&rsquo;s
Fee, and to pay for any extraordinary expenses. This dynamic will occur irrespective of whether the value of the Trust&rsquo;s assets,
or the trading price of the Shares, rises or falls.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>The Trust&rsquo;s Financial
Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The Trust&rsquo;s periodic
financial statements may not utilize the net asset value of the Trust determined by reference to the Index to the extent the methodology
used to calculate the Index is deemed not to be consistent with GAAP.</I></B> The Trust&rsquo;s periodic financial statements will be
prepared in accordance with the Financial Accounting Standards Board (&ldquo;FASB&rdquo;) Accounting Standards Codification Topic 820,
&ldquo;Fair Value Measurements and Disclosures&rdquo; (&ldquo;ASC Topic 820&rdquo;) and utilize an exchange-traded price from the Trust&rsquo;s
principal market for LTC on the Trust&rsquo;s financial statement measurement date. The Sponsor will determine at its sole discretion
the valuation sources and policies used to prepare the Trust&rsquo;s financial statements in accordance with GAAP. The Trust intends to
engage a third-party vendor to obtain a price from a principal market for LTC, which will be determined and designated by such third-party
vendor daily based on its consideration of several exchange characteristics, including oversight, and the volume and frequency of trades.
Under GAAP, such a price is expected to be deemed a Level 1 input in accordance with the ASC Topic 820 because it is expected to be a
quoted price in active markets for identical assets or liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To determine which market
is the Trust&rsquo;s principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating
the Trust&rsquo;s financial statements, the Trust follows ASC 820-10, which outlines the application of fair value accounting. ASC 820-10
determines fair value to be the price that would be received for LTC in a current sale, which assumes an orderly transaction between market
participants on the measurement date. ASC 820-10 requires the Trust to assume that LTC is sold in its principal market to market participants
or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal
or most advantageous market that are independent, knowledgeable, and willing and able to transact. The Trust may transact through digital
asset brokers or dealers, in multiple markets, and its application of ASC 820-10 reflects this fact. The Trust anticipates that, while
multiple venues and types of markets will be available to the digital asset brokers or dealers from whom the Sponsor acquires or disposes
of the Trust&rsquo;s LTC, the principal market in each scenario is determined by looking at the market-based level of volume and LTC trading
activity. Digital asset brokers or dealers may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets and Exchange
Markets (each as defined in the FASB ASC Master Glossary). Based on information reasonably available to the Trust, Exchange Markets have
the greatest volume and level of activity for the asset. The Trust therefore looks to accessible Exchange Markets as opposed to the Brokered
Market, Dealer Market and Principal-to-Principal Markets to determine its principal market. As a result of the aforementioned analysis,
an Exchange Market has been selected as the Trust&rsquo;s principal market. The Trust determines its principal market (or in the absence
of a principal market the most advantageous market) on a quarterly basis to determine which market is its Principal Market for the purpose
of calculating fair value for the creation of quarterly and annual financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>The process that the
Sponsor has developed for identifying a principal market, as prescribed in ASC 820-10, which outlines the application of fair value accounting.</I></B>
The process begins by identifying publicly available, well-established and reputable LTC trading venues (Exchange Markets, as defined
in the FASB ASC Master Glossary), which are selected by the Sponsor and its affiliates at their sole discretion. Those markets include
________, ________, ________ and ________. The Sponsor then, through a service provider, calculates on each valuation period, the highest
volume venue during the 60-minute period prior to 4:00 ET for LTC. The Sponsor then identifies that market as the principal market for
LTC during that period, and uses the price for LTC from that venue at 4:00 ET as the principal market price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 81; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->76<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_011"></A>DESCRIPTION
OF THE TRUST</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is a Delaware Statutory
Trust that was formed on December 10, 2024, by the filing of the Certificate of Trust with the Delaware Secretary of State in accordance
with the provisions of the Delaware Statutory Trust Act (&ldquo;DSTA&rdquo;). The Trust operates pursuant to the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust holds only LTC and
cash. The Trust is expected from time to time to issue Baskets in exchange for cash and to distribute cash in connection with redemptions
of Baskets. The investment objective of the Trust is for the Shares to reflect the performance of the value of LTC as represented by the
Index, less the Trust&rsquo;s liabilities and expenses. The Sponsor believes that, for many investors, the Shares will represent a cost-effective
and convenient investment relative to a direct, outright investment in LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares represent units
of fractional undivided beneficial interest in, and ownership of, the Trust. The Trust is passive and is not managed like a corporation
or an active investment vehicle. The LTC held by the Custodians on behalf of the Trust will be transferred out of the LTC Account only
in the following circumstances: transferred to pay the Sponsor&rsquo;s Fee, transferred to be sold in connection with the redemption of
Baskets, transferred to be sold on an as-needed basis to pay Additional Trust Expenses, sold on behalf of the Trust in the event the Trust
terminates and liquidates its assets or as otherwise required by law or regulation. Assuming that the Trust is treated as a grantor trust
for U.S. federal income tax purposes, each delivery or sale of LTC to pay the Sponsor&rsquo;s Fee or any Additional Trust Expenses will
be a taxable event for Shareholders. See &ldquo;U.S. Federal Income Tax Consequences&mdash;Tax Consequences to U.S. Holders.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is not registered
as an investment company under the Investment Company Act and the Sponsor believes that the Trust is not required to register under the
Investment Company Act. The Trust will not hold or trade in commodity futures contracts or other derivative contracts regulated by the
CEA, as administered by the CFTC. The Sponsor believes that the Trust is not a commodity pool for purposes of the CEA, and that neither
the Sponsor nor the Trustee is subject to regulation as a commodity pool operator or a commodity trading adviser in connection with the
operation of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust expects to create
and redeem Shares from time to time but only in Baskets. A Basket equals a block of 5,000 Shares. The number of outstanding Shares is
expected to increase and decrease from time to time as a result of the creation and redemption of Baskets. The creation and redemption
of Baskets require the delivery to the Trust, or the distribution by the Trust, of the cash value of LTC represented by the Baskets being
created or redeemed (net of accrued expenses and liabilities). The Trust is obligated to convert any cash contributed to LTC as soon as
practicable, except to the extent necessary to pay expenses. The creation and redemption of a Basket may be made in exchange for the delivery
to the Trust, or the distribution by the Trust, of cash equal to that NAV per Share for that day multiplied by 5,000 (or such other number
of Shares then constituting a Basket), adjusted for any applicable Execution Charges. Each Share in the initial Baskets will be priced
at $__ per Share. The cash required to create a Basket, or to be delivered upon a redemption of a Basket, will gradually decrease over
time due to the transfer or sale of the Trust&rsquo;s LTC to pay the Sponsor&rsquo;s Fee and any Additional Trust Expenses. The Trust
will not accept or distribute LTC in exchange for Baskets. The Sponsor recognizes that the size of the Baskets may impact the effectiveness
of the arbitrage mechanism of the Trust&rsquo;s creation and redemption process, and accordingly may adjust the size of the Baskets to
enhance the activities of the Authorized Participants in the secondary market for the Trust&rsquo;s Shares. See &ldquo;Plan of Distribution.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Administrator will determine
the Trust&rsquo;s LTC Holdings (which is the aggregate U.S. dollar value, based on the LTC Index Price, of the Trust&rsquo;s LTC less
its liabilities) on each day the Shares trade on Nasdaq as of 4:00 p.m. ET or as soon thereafter as practicable. The Administrator will
also determine the LTC Holdings per Share, which equals the Trust&rsquo;s LTC Holdings divided by the number of outstanding Shares. Each
business day, the Sponsor will publish the Trust&rsquo;s LTC Holdings and LTC Holdings per Share on the Trust&rsquo;s website, https://coinshares.com/us/etf/,
as soon as practicable after the Trust&rsquo;s LTC Holdings and LTC Holdings per Share have been determined by the Administrator. See
&ldquo;Use of the Compass Crypto Reference Index Litecoin - 4pm NY Time.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s assets will
consist solely of LTC and cash. Each Share will represent a proportional interest, based on the total number of Shares outstanding, in
the LTC held by the Trust, less the Trust&rsquo;s liabilities (which include accrued but unpaid fees and expenses). The Sponsor expects
that the market trading price of the Shares will fluctuate over time in response to the market prices of LTC. In addition, the Sponsor
expects that the trading price of the Shares will reflect the estimated accrued but unpaid expenses of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors may obtain on a
24-hour basis LTC pricing information from various financial information service providers or Litecoin Blockchain information sites. Current
LTC Index Prices are also generally available with bid/ask spreads directly from LTC Exchanges. As of the date of this Prospectus, the
Selected Exchanges of the Index were ____, ____, ____, ____, ____ and ____. Market prices for the Shares will be available from a variety
of sources, including brokerage firms, information websites and other information service providers. In addition, on each business day
the Trust&rsquo;s website will provide pricing information for the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust has no fixed termination
date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 82; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->77<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_012"></A>THE SPONSOR</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s Sponsor
is CoinShares Co., a Delaware corporation and a wholly owned subsidiary by CoinShares International Limited. The Sponsor&rsquo;s principal
place of business is 437 Madison Avenue, 28<SUP>th</SUP> Floor, New York, NY 10022 and its telephone number is 646-308-1518. Under the
Delaware General Corporation Law and the governing documents of the Sponsor, CoinShares International Limited, the sole shareholder of
the Sponsor, is not responsible for the debts, obligations and liabilities of the Sponsor solely by reason of being the sole shareholder
of the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">CoinShares International Limited
and its subsidiaries have significant experience sponsoring exchange-traded funds and similar products in Europe. The Sponsor has not
sponsored an exchange-traded vehicle prior to the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt"><B>The Sponsor&rsquo;s
Role</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.95pt; text-align: justify; text-indent: -84.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor arranged for and
paid the costs related to the creation of the Trust and the Sponsor arranges for the registration of the Shares for their public offering
in the United States and their listing on Nasdaq. As consideration for its receipt of the Sponsor&rsquo;s Fee from the Trust, the Sponsor
is obligated to pay the Sponsor-paid Expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is generally responsible
for the administration of the Trust under the provisions of the Trust Agreement. This includes (i) selecting and monitoring the Trust&rsquo;s
Service Providers and from time to time engaging additional, successor or replacement Service Providers and (ii) upon dissolution of the
Trust, distributing the Trust&rsquo;s remaining LTC or the cash proceeds of the sale of the Trust&rsquo;s remaining LTC to the owners
of record of the Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may transfer all
or substantially all of its assets to an entity that carries on the business of the Sponsor if at the time of the transfer the successor
assumes all of the obligations of the Sponsor under the Trust Agreement. In such an event, the Sponsor will be relieved of all further
liability under the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor&rsquo;s Fee is
paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement and for the Sponsor&rsquo;s agreement
to pay the Sponsor-paid Expenses. See &ldquo;Activities of the Trust&mdash;Trust Expenses.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Marketing Agent Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor has entered into
a Marketing Agent Agreement with an independent third party to assist the Sponsor in distributing the Shares, developing an ongoing marketing
plan for the Trust, preparing marketing materials regarding the Shares, including the content on the Trust&rsquo;s website, https://coinshares.com/us/etf/____/,
executing the marketing plan for the Trust and providing strategic and tactical research on the global LTC market. For more information
about the distribution of the Shares, see &ldquo;Plan of Distribution.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Index License Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Benchmark Administrator
and the Sponsor have entered into an index license agreement (the &ldquo;Index License Agreement&rdquo;) governing the Sponsor&rsquo;s
use of the Index for calculation of the LTC Index Price. The Benchmark Administrator may adjust the calculation methodology for the Index
without notice to, or consent of, the Trust or its Shareholders. Under the Index License Agreement, the Sponsor pays a monthly fee and
a fee based on the Trust&rsquo;s LTC Holdings to the Benchmark Administrator in consideration of its license to the Sponsor of Index-related
intellectual property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Management of the Sponsor</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust Agreement,
all management functions of the Trust have been delegated to and are conducted by the Sponsor, its agents and its affiliates, including
without limitation, the Custodians and their agents. As officers of the Sponsor, Jean-Marie Mognetti, the principal executive officer
of the Sponsor, and Charles Butler, the principal financial officer and principal accounting officer of the Sponsor, may take certain
actions and execute certain agreements and certifications for the Trust, in their capacity as the principal officers of the Sponsor. Mr.
Mognetti has served as principal executive officer since _________, 202_, and Mr. Butler has served as principal financial officer and
principal accounting officer since ________, 202_. Both Mr. Mognetti and Mr. Butler hold their positions for an indefinite term. Mr. Mognetti
and Mr. Butler also serve as officers and directors of other affiliates and subsidiaries of CoinShares International Limited, the Sponsor&rsquo;s
parent company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 83; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->78<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Jean-Marie Mognetti, Principal Executive Officer</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Jean-Marie Mognetti is the
CEO and Co-founder of CoinShares International Limited (&ldquo;CoinShares&rdquo;), a leading European investment company specializing
in digital assets. CoinShares is the parent company of the Sponsor. Mr. Mognetti holds a Masters in Mathematical Trading and Finance from
Sir John Cass Business School. He is a seasoned commodity trader, having developed advanced expertise in areas such as quantitative analysis,
risk management, and alpha generation. His skills extend to managing trading programs focused on macroeconomic commodities, notably cryptocurrencies.
Before co-founding CoinShares in 2014, Mr. Mognetti served as a quantitative trader at Hermes Commodities Fund Managers. His role there
was instrumental in establishing and implementing trading strategies based on rigorous quantitative risk management approaches.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Charles Butler, Principal Financial Officer and Principal Accounting
Officer</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Charles Butler trained with
PricewaterhouseCoopers and is a fellow of the Institute of Chartered Accountants in England and Wales with more than 20 years of financial
services experience.&nbsp; Charles's experience covers audit, accountancy, funds, trusts, and private wealth predominantly in the offshore
financial services industry.&nbsp; Prior to joining CoinShares in September 2017, Charles was a Senior Debt Fund Manager at BNP Paribas
in Jersey.&nbsp; At CoinShares Charles has responsibility for finance and tax matters, and is a director of a number of group companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_013"></A>THE TRUSTEE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">CSC Delaware Trust Company
(formerly Delaware Trust Company), a Delaware corporation, serves as Delaware trustee of the Trust under the Trust Agreement. The Trustee
has its principal office at 251 Little Falls Drive, Wilmington, Delaware 19808. The Trustee is unaffiliated with the Sponsor. A copy of
the Trust Agreement is available for inspection at the Trustee&rsquo;s principal office identified above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Trustee&rsquo;s Role</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee is appointed to
serve as the trustee of the Trust in the State of Delaware for the sole purpose of satisfying the requirement of Section 3807(a) of the
DSTA that the Trust have at least one trustee with a principal place of business in the State of Delaware. The duties of the Trustee will
be limited to (i) accepting legal process served on the Trust in the State of Delaware and (ii) the execution of any certificates required
to be filed with the Delaware Secretary of State which the Delaware Trustee is required to execute under the DSTA. To the extent that,
at law or in equity, the Trustee has duties (including fiduciary duties) and liabilities relating thereto to the Trust or the Shareholders,
such duties and liabilities will be replaced by the duties and liabilities of the Trustee expressly set forth in the Trust Agreement.
The Trustee will have no obligation to supervise, nor will it be liable for, the acts or omissions of the Sponsor, Transfer Agent, Administrator,
Custodians or any other Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Neither the Trustee, either
in its capacity as trustee or in its individual capacity, nor any director, officer or controlling person of the Trustee is, or has any
liability as, the issuer, director, officer or controlling person of the issuer of Shares. The Trustee&rsquo;s liability in connection
with the issuance and sale of Shares is limited solely to the express obligations of the Trustee as set forth in the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee has not prepared
or verified, and will not be responsible or liable for, any information, disclosure or other statement in this prospectus or in any other
document issued or delivered in connection with the sale or transfer of the Shares. The Trust Agreement provides that the Trustee will
not be responsible or liable for the genuineness, enforceability, collectability, value, sufficiency, location or existence of any of
the LTC or other assets of the Trust. See &ldquo;Description of the Trust Agreement.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee is permitted to
resign upon at least 180 days&rsquo; notice to the Trust. The Trustee will be compensated by the Sponsor and indemnified by the Sponsor
and the Trust against any expenses it incurs relating to or arising out of the formation, operation or termination of the Trust, or the
performance of its duties pursuant to the Trust Agreement except to the extent that such expenses result from gross negligence, willful
misconduct or bad faith of the Trustee. The Sponsor has the discretion to replace the Trustee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee&rsquo;s fees and
expenses under the Trust Agreement will be paid by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 84; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->79<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_014"></A>THE TRANSFER
AGENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ will serve as the
Transfer Agent of the Trust under the Trust Agreement and pursuant to the terms and provisions of the Transfer Agency and Service Agreement.
The Transfer Agent has its principal office at ________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Transfer Agent&rsquo;s Role</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Transfer Agent holds the
Shares in book-entry form. The Administrator directs the Transfer Agent to credit or debit the number of Baskets to the applicable Authorized
Participant. The Transfer Agent will issue or cancel each Authorized Participant&rsquo;s Basket, as applicable. The Transfer Agent will
also assist with the preparation of Shareholders&rsquo; account and tax statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor will indemnify
and hold harmless the Transfer Agent, and the Transfer Agent will incur no liability for the refusal, in good faith, to make transfers
which it, in its judgment, deems improper or unauthorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Transfer Agent Fee is
a Sponsor-paid Expense to be assumed and paid by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Transfer Agency and Services
Agreement will have an initial three-year term and will automatically be renewed for successive one-year periods, unless terminated pursuant
to the terms of the agreement. The Transfer Agent may terminate its services for certain material breaches of the Transfer Agency and
Services Agreement and terminations as may be required or occasioned by law. Either party may terminate the Transfer Agency and Services
Agreement upon 90 days&rsquo; prior written notice to the other party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_015"></A>THE ADMINISTRATOR</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ will serve as the
Administrator of the Trust under the Trust Agreement and pursuant to the terms and provisions of the Trust Administration and Accounting
Agreement. The Administrator has its principal office at ________.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Administrator&rsquo;s Role</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Trust Administration
and Accounting Agreement, the Administrator is generally responsible for the day-to-day administration of the Trust. The responsibilities
of the Administrator include (i) preparing and providing periodic reports on behalf of the Trust to investors, (ii) processing orders
to create and redeem Baskets and coordinating the processing of such orders with the Custodians, the Transfer Agent and DTC, (iii) publishing
the Trust&rsquo;s LTC Holdings and LTC Holdings per Share each business day at 4:00 p.m. ET or as soon thereafter as practicable and (iv)
instructing the Custodians to transfer the Trust&rsquo;s LTC as needed to pay the Sponsor&rsquo;s Fee and any Additional Trust Expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will indemnify the
Administrator, and the Administrator will incur no liability for its reliance upon (i) any law, act, regulation or interpretation of the
same even though the same may thereafter have been altered, changed, amended or repealed, (ii) the Trust&rsquo;s offering materials or
documents (excluding information provided by the Administrator), (iii) any instructions or (iv) any opinion of legal counsel for the Trust
or the Administrator, or arising out of transactions or other activities of the Trust which occurred prior to the commencement of the
Trust Administration and Accounting Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust Administration
and Accounting Agreement, the Administrator has agreed to provide its services for an initial term of three years with an automatic renewal
of successive one-year terms unless earlier terminated pursuant to the Trust Administration and Accounting Agreement. The Administrator
may terminate its services for certain material breaches of the Trust Administration and Accounting Agreement and terminations as may
be required or occasioned by law. Either party may terminate the Trust Administration and Accounting Agreement upon 90 days&rsquo; prior
written notice to the other party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 85; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->80<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_016"></A>AUTHORIZED
PARTICIPANTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An Authorized Participant
must enter into an &ldquo;Authorized Participant Agreement&rdquo; with the Sponsor and the Trust to govern its placement of orders to
create and redeem Baskets. The Authorized Participant Agreement sets forth the procedures for the creation and redemption of Baskets and
for the delivery of LTC required for creations and redemptions. The Authorized Participant Agreement also provides the Sponsor and the
Administrator with the authority to terminate the relationship with an Authorized Participant if the Sponsor or Administrator determines
that an Authorized Participant does not to comply with the regulatory and registration requirements promulgated by FinCEN or other state
authorities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Authorized Participant
must (i) be a registered broker-dealer or other securities market participant, such as a bank or other financial institution, that is
not required to register as a broker-dealer to engage in securities transactions and (ii) enter into an Authorized Participant Agreement
with the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A list of the current Authorized
Participants can be obtained from the Sponsor. As of the date of this Prospectus, the Trust has engaged ________, ________, ________,
________ and ________ as Authorized Participants. Additional Authorized Participants may be added at any time, subject to the discretion
of the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_017"></A>THE CUSTODIANS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The ________ Custodian</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the ________ Custody
Agreement, the ________ Custodian is responsible for (1) safekeeping all of the LTC owned by the Trust allocated to it by the Sponsor,
(2) opening one or more accounts that hold the Trust&rsquo;s LTC and (3) facilitating the transfer of LTC required for the operation of
the Trust as directed by the Sponsor. The Custodian is chartered as a limited-purpose trust company by the NYDFS and is authorized by
the NYDFS to provide digital asset custody services. The Custodian is a wholly-owned subsidiary of ________.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the ________ Custody
Agreement, the ________ Custodian&rsquo;s liability is limited as follows, among others: (i) other than with respect to claims and losses
arising from spot trading of LTC, or fraud or willful misconduct, among others, the ________ Custodian&rsquo;s aggregate liability under
the ________ Custody Agreement shall not exceed the greater of (A) the greater of (x) $5 million and (y) the aggregate fees paid by the
Trust to the ________ Custodian in the 12 months prior to the event giving rise to the ________ Custodian&rsquo;s liability, and (B) the
value of the affected LTC or cash giving rise to the ________ Custodian&rsquo;s liability; (ii) the ________ Custodian&rsquo;s aggregate
liability in respect of each cold storage address shall not exceed $100 million; (iii) in respect of the ________ Custodian&rsquo;s obligations
to indemnify the Trust and its affiliates against third-party claims and losses to the extent arising out of or relating to, among others,
the ________ Custodian&rsquo;s violation of any law, rule or regulation with respect to the provision of its services, the ________ Custodian&rsquo;s
liability shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the ________ Custodian in the
12 months prior to the event giving rise to the ________ Custodian&rsquo;s liability; and (iv) in respect of any incidental, indirect,
special, punitive, consequential or similar losses, the ________ Custodian is not liable, even if the ________ Custodian has been advised
of or knew or should have known of the possibility thereof. The ________ Custodian is not liable for delays, suspension of operations,
failure in performance, or interruption of service to the extent it is directly due to a cause or condition beyond the reasonable control
of the ________ Custodian. Under the ________ Custody Agreement, except in the case of its negligence, fraud, material violation of applicable
law or willful misconduct, the ________ Custodian shall not have any liability, obligation, or responsibility for any damage or interruptions
caused by any computer viruses, spyware, scareware, Trojan horses, worms or other malware that may affect the Trust&rsquo;s computer or
other equipment, or any phishing, spoofing or other attack, unless the ________ Custodian fails to have commercially reasonable policies,
procedures and technical controls in place to prevent such damages or interruptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The ________ Custodian may
terminate the ________ Custody Agreement for any reason upon providing the applicable notice to the Trust, or immediately for Cause (as
defined in the ________ Custody Agreement), including, among others, if the Trust materially breaches the Prime Broker Agreement and such
breach remains uncured, undergoes a bankruptcy event, or fails to repay Trade Credits. The ________ Custodian may terminate the ________
Custody Agreement for any reason upon providing 30 days&rsquo; notice to the Trust, or immediately for Cause (as defined below). The ________
Custody Agreement forms a part of the Prime Broker Agreement and is subject to the termination provisions in the Prime Broker Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The ________ Custodian</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ is also authorized
to safeguard the Trust&rsquo;s LTC holdings. ________ maintains one or more custody accounts on its books, pursuant to the terms of the
________ Custody Agreement, for the receipt, safekeeping, and maintenance of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 86; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->81<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ and its affiliates,
including their officers, directors, agents, and employees, are not liable for any lost profits, special, incidental, indirect, intangible,
or consequential damages resulting from authorized or unauthorized use of the Trust or Sponsor&rsquo;s site or services. This includes
damages arising from any contract, tort, negligence, strict liability, or other legal grounds, even if ________ was previously advised
of, knew, or should have known about the possibility of such damages. However, this exclusion of liability does not extend to cases of
________&rsquo;s fraud, willful misconduct, or gross negligence. In situations of gross negligence, ________&rsquo;s liability is specifically
limited to the value of the digital assets or fiat currency that were affected by the negligence. Additionally, the total liability of
________ for direct damages is capped at the fees paid or payable to them under the relevant agreement during the three-month period immediately
preceding the first incident that caused the liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ cold wallets are
supported by a $250 million insurance policy issued by Lloyd&rsquo;s of London. The specifics of the policy include Cyber Insurance, E&amp;O,
and general specie. Any copying and theft of private keys, insider theft or dishonest acts by ________ employees or executives, and loss
of keys directly related to ________&rsquo;s custody of keys would be covered by this amount at minimum. This insurance policy is shared
among all of ________&rsquo;s clients and is not specific to the Trust or to customers holding LTC and may not be available or sufficient
to protect the Trust from all possible losses or sources of losses. The Sponsor may purchase additional insurance coverage through ________&rsquo;s
underwriter, though the Sponsor has not purchased such additional insurance cover as of the date of this Prospectus. ________ is not FDIC-insured.
________ has established a business continuity plan that will support its ability to conduct business in the event of a significant business
disruption. This plan is reviewed and updated annually, and can be updated more frequently, if deemed necessary, by ________ in its sole
discretion. Should ________ be impacted by a significant business disruption, ________ aims to minimize business interruption as quickly
and efficiently as possible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The ________ Custody Agreement
commenced on the effective date, as detailed in the agreement, and will continue for one&nbsp;(1)&nbsp;year, unless earlier terminated
in accordance with the terms of the ________ Custody Agreement. After the initial term, the ________ Custody Agreement will automatically
renew for successive renewal terms, as established on the agreement, unless either party notifies the other of its intention not to renew
with prior notice. ________ may terminate the ________ Custody Agreement for any reason upon providing at least thirty (30) days&rsquo;
written notice to the Trust and to the Sponsor, or immediately if ________ perceives a risk of legal or regulatory non-compliance associated
with the Trust&rsquo;s custodial account activity, among others. The Sponsor may terminate the ________ Custody Agreement at any time
upon providing at least thirty (30) days&rsquo; written notice to ________, paying outstanding amounts and an early termination fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The ________ Custodian</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ is also authorized
to safeguard the Trust&rsquo;s LTC holdings. ________ maintains one or more custody accounts on its books, pursuant to the terms of the
________ Custody Agreement, for the receipt, safekeeping, and maintenance of LTC. CoinShares International Limited, the parent of the
Sponsor, holds a minority equity interest in ________ and is therefore an affiliate of the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In general, ________&rsquo;s
(and its affiliates&rsquo;) liability arising out of or relating to the ________ Custody Agreement will be limited to those damages that
are caused directly by ________&rsquo;s failure to exercise such care and skill to be reasonably expected of a professional custodian
for hire of assets of the same type as the Trust&rsquo;s assets, acting without gross negligence, willful default or fraud. More particularly,
________&rsquo;s liability is limited by the following, among others: (i) in no event shall ________ (or its affiliates) be liable for
any reduction in the value of the Trust&rsquo;s assets; (ii) in no event shall ________ (or its affiliates) be liable for any losses suffered
or incurred due to an event (or series of connected events) which could reasonably be considered to be outside of ________&rsquo;s control;
(iii) in no event shall ________ (or its affiliates) be liable for any indirect or consequential loss, loss of profits, contract, revenue,
cost, opportunity, anticipated savings, business and/or goodwill, in each case, arising out of or in connection with the ________ Custody
Agreement, even if that loss or damage was reasonably foreseeable or ________ (or its affiliates) was aware of the possibility of that
loss or damage arising. To the extent that ________ (or its affiliates) is liable in accordance with the terms of the ________ Custody
Agreement, ________&rsquo;s (or its affiliates&rsquo;) liability to the Trust in the case of Theft (a &ldquo;Theft&rdquo; is defined in
the ________ Custody Agreement as unauthorized access to ________&rsquo;s systems by a third party resulting in a reduction of the amount
of the Trust&rsquo;s assets held by ________ on behalf of the Trust) shall be limited to the higher of the service fees (paid and/or payable)
by the Trust to ________ under the ________ Custody Agreement during the twenty-four (24) month period immediately preceding the Theft,
or the actual amount received by ________ under its insurance policies maintained, if any, for the Theft. Other than in the case of Theft,
to the extent that ________ (or its affiliates) is liable given the limitation and exclusions outlined in the ________ Custody Agreement,
________ (or its affiliates) shall not be liable to the Trust (whether arising in contract, tort (including negligence), breach of statutory
duty or otherwise) for any sum which would result in ________&rsquo;s (or its affiliates) total liability under the ________ Custody Agreement
to exceed the service fees paid or payable by the Trust to ________ under the agreement during the twelve (12) month period immediately
preceding the event (or series of connected events) giving rise to the liability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 87; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->82<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ maintains comprehensive
insurance coverage in relation to digital assets under custody, that is reviewed and updated on an ongoing basis. This program encompasses
crime and specie policies and protects against risks related to third-party computer and fund transfer fraud, employee theft, collusion,
and physical device or backup theft, loss or damage. The policy is designed to protect all clients and their on-chain segregated custody
wallets, the $50 million (USD) limit is aggregated and pooled and not dedicated specifically to any individual client.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The ________ Custody Agreement
commenced on the effective date, as detailed in the agreement, and will continue for thirty-six&nbsp;(36) months, unless earlier terminated
in accordance with the terms of the ________ Custody Agreement. After the initial term, the ________ Custody Agreement will automatically
renew for successive twelve (12) month periods, as established on the agreement, unless either party notifies the other of its intention
to terminate in accordance with the terms of the agreement. ________ may terminate the ________ Custody Agreement for any reason upon
providing at least three (3) months&rsquo; written notice to the Trust, or immediately upon written notice to the Trust if: (i) ________
determines, in its sole discretion, that continued provision of the custody services would result in violation of applicable law or regulation
relating to either ________ or the Trust and the parties are unable to amend the relevant provisions of the ________ Custody Agreement
in accordance with the terms of the agreement, (ii) a force majeure event, as defined in the ________ Custody Agreement, continues for
at least forty-five (45) days, or (iii) the Trust does not utilize the custody services set forth in the ________ Custody Agreement for
a period of twelve (12) months from the effective date of the agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_018"></A>THE PRIME BROKER
AND THE TRADE CREDIT LENDER</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Prime Broker</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the ________ Custody
Agreement, a portion of the Trust&rsquo;s LTC holdings and cash holdings from time to time may be held with ________, an affiliate of
the ________ Custodian, and the Prime Broker, in the Trading Account, in connection with creations and redemptions of Baskets for which
the Prime Broker is a LTC Trading Counterparty and for sales of LTC to pay the Sponsor&rsquo;s Fee and Trust expenses not assumed by the
Sponsor. The Sponsor may, at its sole discretion, add or terminate prime brokers at any time, but it will have no obligation whatsoever
to do so or to seek any particular terms for the Trust from other such prime brokers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">These periodic holdings held
in the Trading Account with the Prime Broker represent an omnibus claim on the Prime Broker&rsquo;s LTC held on behalf of clients; these
holdings exist across a combination of omnibus hot wallets, omnibus cold wallets or in accounts in the Prime Broker&rsquo;s name on a
trading venue (including third-party venues and the Prime Broker&rsquo;s own execution venue) where the Prime Broker executes orders to
buy and sell LTC on behalf of clients (each such venue, a &ldquo;Connected Trading Venue&rdquo;). The Sponsor will not direct the Prime
Broker to exchange the Trust&rsquo;s assets on any specific Connected Trading Venue. The Prime Broker is not required to hold any of the
LTC in the Trust&rsquo;s Trading Account in cold storage or to hold any such LTC in segregation, and neither the Trust nor the Sponsor
can control the method by which the Prime Broker holds the LTC credited to the Trust&rsquo;s Trading Account. Within the Trading Account,
the ________ Custody Agreement provides that the Trust does not have an identifiable claim to any particular LTC. Instead, the Trust&rsquo;s
Trading Account represents an entitlement to a <I>pro rata</I> share of the LTC the Prime Broker has allocated to the omnibus hot wallets,
omnibus cold wallets, and the accounts in the Prime Broker&rsquo;s name that the Prime Broker maintains at Connected Trading Venues (which
are typically held on an omnibus, rather than segregated, basis).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the ________ Custody
Agreement, the Trust may engage in purchases or sales of LTC by placing orders with the Prime Broker. The Prime Broker will route orders
placed by the Sponsor through the Prime Broker&rsquo;s execution platform (the &ldquo;Trading Platform&rdquo;) to a Connected Trading
Venue where the order will be executed. Each order placed by the Sponsor will be sent, processed and settled at each Connected Trading
Venue to which it is routed. The Prime Broker may have actual or potential conflicts of interest in connection with providing Prime Broker
Services, including when acting as a LTC Trading Counterparty in connection with creations and redemptions of Baskets. This dual role
may create a situation where the interests of the Prime Broker do not align with the interests of Shareholders. The Prime Broker Agreement
further provides that the Prime Broker is subject to certain conflicts of interest, including: (i) the Trust&rsquo;s orders may be routed
to the Prime Broker&rsquo;s exchange platform where the orders may be executed against other customers of the Prime Broker or with the
Prime Broker acting as principal, (ii) the beneficial identity of the purchaser or seller with respect to the Trust&rsquo;s order is unknown
and therefore may inadvertently be another client of the Prime Broker, (iii) the Prime Broker does not engage in front-running, but is
aware of the Trust&rsquo;s orders or imminent orders and may execute a trade for its own inventory (or the account of an affiliate) while
in possession of that knowledge and (iv) the Prime Broker may act in a principal capacity with respect to certain of the Trust&rsquo;s
orders. As a result of these and other conflicts, when acting as principal, the Prime Broker may have an incentive to favor its own interests
and the interests of its affiliates over the Trust&rsquo;s interests. However, the Prime Broker Agreement also requires the Prime Broker
to have in place certain policies and procedures designed to mitigate such conflicts. The Prime Broker will maintain appropriate and effective
arrangements to eliminate or manage conflicts of interest, including segregation of duties, information barriers and training.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 88; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->83<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Subject to the foregoing,
and to certain policies and procedures that the ________ Custody Agreement requires the Prime Broker to have in place to mitigate conflicts
of interest when executing the Trust&rsquo;s orders, the ________ Custody Agreement provides that the Prime Broker shall have no liability,
obligation, or responsibility whatsoever for the selection or performance of any Connected Trading Venue, and that other Connected Trading
Venues and/or trading venues not used by the Prime Broker may offer better prices and/or lower costs than the Connected Trading Venue
used to execute the Trust&rsquo;s orders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent the Trust sells
LTC through the Prime Broker, the Trust&rsquo;s orders will be executed at the Connected Trading Venues that have been approved in accordance
with the Prime Broker&rsquo;s due diligence and risk assessment process. The Prime Broker has represented that its due diligence on Connected
Trading Venues includes reviews conducted by the legal, compliance, security, privacy and finance and credit-risk teams, The Connected
Trading Venues, which are subject to change from time to time, currently include ________, ________, ________ and ________, the exchange
operated by the Prime Broker, as well as four additional non-bank market makers (&ldquo;NBMMs&rdquo;). The Prime Broker has represented
to the Trust that it is unable to name the NBMMs due to confidentiality restrictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Once the Sponsor places an
order to purchase or sell LTC on the Trading Platform, the associated LTC or cash used to fund or fill the order, if any, will be placed
on hold and will generally not be eligible for other use or withdrawal from the Trust&rsquo;s Trading Account. The Trust&rsquo;s Vault
Accounts may be used directly to fund orders. With each Connected Trading Venue, the Prime Broker shall establish an account in the Prime
Broker&rsquo;s name, or in its name for the benefit of clients, to trade on behalf of its clients, including the Trust, and the Trust
will not, by virtue of the Trading Account the Trust maintains with the Prime Broker, have a direct legal relationship, or account with,
any Connected Trading Venue. The Vault Account at the ________ Custodian is subject to the lien to secure outstanding Trade Credits in
favor of the Trade Credit Lender discussed below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Broker is permitted
to suspend or terminate the Prime Broker Agreement under certain circumstances. The Prime Broker, for itself or as agent for the ________
Custodian and Trade Credit Lender, may not terminate the Prime Broker Agreement (including the ________ Custody Agreement) or suspend,
restrict terminate or modify the Prime Broker Services (as defined below) on less than 30 days&rsquo; notice, except in the event of (i)
a Change in Law (defined below) or (ii) a Cause event (as defined below). The Prime Broker Agreement defines &ldquo;________ Prime Broker
Services&rdquo; as (i) the custody of the Trust&rsquo;s LTC in its Vault Account, the processing of deposits and withdrawals and other
custody transactions, (ii) access to the Prime Broker&rsquo;s trading platform and the execution and settlement of all orders for the
sale of LTC submitted by the Trust, and (iii) the extension of credit to the Trust by the Trade Credit Lender pursuant to the Trade Financing
Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Broker Agreement
defines a &ldquo;Change in Law&rdquo; as any change in or adoption of any applicable law, rule, or regulation which, in the reasonable
opinion of counsel to the Prime Broker would prohibit or materially impede some or all of the arrangement contemplated by the Prime Broker
Agreement. Upon the occurrence of a Change in Law, the parties will negotiate to agree on modifications to the Prime Broker Agreement
or the ________ Prime Broker Services that would enable compliance with such Change in Law or, in the case of a material impediment, reduce
the impact to the parties of such Change in Law and the ________ Entities shall continue to provide the ________ Prime Broker Services
unless prohibited from doing so by the Change in Law. If the parties cannot agree on modifications within thirty (30) days following notice
from the Prime Broker or if the Change in Law requires that the Prime Broker immediately ceases providing any ________ Prime Broker Services,
the Prime Broker may, upon written notice, suspend, restrict or terminate the ________ Prime Broker Services solely to the extent necessary
to account for the Change in Law, provided that any such suspension, restriction, termination or modification is narrowly tailored.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the occurrence and continuation
of a Cause event, and after giving effect to any notice requirement and cure period that may apply, the Prime Broker may, at its reasonable
discretion, terminate the Prime Broker Agreement and accelerate the Trust&rsquo;s obligations, and/or take certain other actions. The
Prime Broker Agreement defines &ldquo;Cause&rdquo; to mean, (i) a material breach of the Prime Broker Agreement (other than the ________
Custody Agreement) which is uncured for 10 days; (ii) a material breach of the ________ Custody Agreement which is uncured for 30 days;
(iii) a Bankruptcy Event (as defined below); and (iv) the failure by the Trust to repay Trade Credits by the applicable deadline specified
in the Trade Financing Agreement which, in the event the failure results solely from an error or omission of an administrative or operational
nature, remains uncured for a period of one business day.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 89; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->84<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;Bankruptcy Event&rdquo;
is defined in the Prime Broker Agreement to mean the party is (i) dissolved (other than pursuant to a consolidation, amalgamation or merger);
(ii) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become
due; (iii) makes a general assignment, arrangement or composition with or for the benefit of its creditors; (iv) institutes or has instituted
against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting creditors&rsquo; rights, or a petition is presented for its winding-up or liquidation, and in the case of any such
proceeding or petition instituted or presented against it, such proceeding or petition (I) results in a judgment of insolvency or bankruptcy
or the entry of an order for relief or the making of an order for its winding-up or liquidation or (II) is not dismissed, discharged,
stayed or restrained in each case within 30 days of the institution or presentation thereof; (v) has a resolution passed for its winding-up,
official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (vi) seeks or becomes subject to
the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it
or for all or substantially all its assets; (vii) has a secured party take possession of all or substantially all its assets or has a
distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all
its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each
case within 30 days thereafter; (viii) causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction,
has an analogous effect to any of the events specified in clauses (i) to (vii) (inclusive); or (ix) takes any action in furtherance of,
or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust may terminate the
Prime Broker Agreement, including the ________ Custody Agreement, in whole or in part for any reason upon 30 days&rsquo; notice to the
Prime Broker, for itself or as agent on behalf of the ________ Custodian or Trade Credit Lender, or upon a ________ Termination Event.
The Prime Broker Agreement defines a &ldquo;________ Termination Event&rdquo; to mean the occurrence and continuance of (i) a Bankruptcy
Event with respect to any ________ Entity, (ii) the failure of any ________ Entity to sell or withdraw or transfer the Trust&rsquo;s LTC
in accordance with the Trust&rsquo;s instructions within the time periods set forth in the Prime Broker Agreement and such failure is
not cured within two (2) business days following the Trust providing written notice to the relevant ________ Entity (&ldquo;CB Return
Cure&rdquo;); provided, however, that (A) if, prior to the expiration of the CB Return Cure, the Prime Broker transfers cash to the Trust
in an amount equal to the value of the LTC based on the Benchmark Valuation (defined as the Compass Crypto Reference Index Litecoin -
4pm NY Time) as of the time that the request to sell, transfer or withdraw was originally made by the Trust (the &ldquo;LTC Cash Value&rdquo;)
or if the Prime Broker delivers cash collateral to an account designated by the Trust and in which the Trust has a perfected, first priority
security interest and in an amount equal to the LTC Cash Value until the relevant LTC is sold, withdrawn or transferred or the Trust elects
to receive such amount in cash in lieu of the Prime Broker&rsquo;s obligation to sell, withdraw or transfer the relevant LTC, in each
cash, such failure will be deemed cured; provided, further that, the Trust shall have the right to choose whether to receive the LTC Cash
Value in lieu of the relevant LTC or receive the LTC Cash Value as cash collateral, or (B) if such failure is due to a technology or security
issue where, in the commercially reasonable opinion of the Prime Broker, returning the relevant LTC would result in material risk to the
Trust or the Prime Broker or may result in the relevant LTC being lost or otherwise not successfully returned and the Prime Broker promptly
notifies the Trust promptly upon Client&rsquo;s notice of such failure, (1) the Trust may request that the Prime Broker still sell, withdraw
or transfer the LTC, but the Prime Broker will have no liability with respect to any such sell, withdrawal or transfer (unless the Prime
Broker or any of the ________ Entities act with negligence unrelated to such technology or security issue) and any failure to withdraw
or transfer shall not result in a ________ Termination Event if the Trust does not receive the withdrawn or transferred LTC or the proceeds
of any such sale due to such technology or security issue, or (2) if the Trust does not elect to have the Prime Broker still make the
sale, withdrawal or transfer, a ________ Termination Event shall not occur while the relevant security or technology event is occurring
and continuing, (iii) the failure of any ________ Entity to withdraw or transfer cash to the Trust in accordance with the Trust&rsquo;s
instructions within the time periods set forth in the Prime Broker Agreement and such failure is not cured within one (1) business day
following the Trust providing written notice to the relevant ________ Entity, (iv) a ________ Entity intentionally or willfully, materially
breaches any provision of the Prime Broker Agreement (other than the provisions of the ________ Custody Agreement) and such breach remains
uncured for a period of 10 calendar days after notice of such breach is provided by the Trust to the Prime Broker; or (v) a ________ Entity
intentionally or willfully, materially breaches any provision of the ________ Custody Agreement and such breach remains uncured for a
period of 30 calendar days after notice of such breach is provided by the Trust to the Prime Broker.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Broker does not
guarantee uninterrupted access to the Trading Platform or the services it provides to the Trust. Under certain circumstances, the Prime
Broker is permitted to halt or suspend trading on the Trading Platform, or impose limits on the amount or size of, or reject, the Trust&rsquo;s
orders, including in the event of, among others, (a) delays, suspension of operations, failure in performance, or interruption of service
that are directly due to a cause or condition beyond the reasonable control of the Prime Broker, (b) the Trust has engaged in unlawful
or abusive activities or fraud, or (c) a security or technology issue occurred and is continuing that results in the Prime Broker being
unable to provide trading services or accept the Trust&rsquo;s order, in each case, subject to certain protections for the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Neither the Prime Broker nor
any other ________ entity is permitted to withdraw the Trust&rsquo;s LTC from the Trust&rsquo;s Vault Accounts, or loan, hypothecate,
pledge or otherwise encumber the Trust&rsquo;s LTC, without the consent of the Trust. The Trading Account is subject to the lien to secure
outstanding Trade Credits in favor of the Trade Credit Lender discussed below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 90; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->85<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Prime Broker Agreement,
the Prime Broker&rsquo;s liability is limited as follows, among others: (i) other than with respect to claims and losses arising from
spot trading of LTC, or fraud or willful misconduct, among others, the Prime Broker&rsquo;s aggregate liability shall not exceed the greater
of (A) the greater of (x) $5 million and (y) the aggregate fees paid by the Trust to the Prime Broker in the 12 months prior to the event
giving rise to the Prime Broker&rsquo;s liability, and (B) the value of the cash or affected LTC giving rise to the Prime Broker&rsquo;s
liability; (ii) in respect of the Prime Broker&rsquo;s obligations to indemnify the Trust and its affiliates against third-party claims
and losses to the extent arising out of or relating to, among others, the Prime Broker&rsquo;s violation of any law, rule or regulation
with respect to the provision of its services, or the full amount of the Trust&rsquo;s assets lost due to the insolvency of or security
event at a Connected Trading Venue, the Prime Broker&rsquo;s liability shall not exceed the greater of (A) $5 million and (B) the aggregate
fees paid by the Trust to the Prime Broker in the 12 months prior to the event giving rise to the Prime Broker&rsquo;s liability; and
(iii) in respect of any incidental, indirect, special, punitive, consequential or similar losses, the Prime Broker is not liable, even
if the Prime Broker has been advised of or knew or should have known of the possibility thereof. The Prime Broker is not liable for delays,
suspension of operations, failure in performance, or interruption of service to the extent it is directly due to a cause or condition
beyond the reasonable control of the Prime Broker. Both the Trust and the Prime Broker and its affiliates (including the ________ Custodian)
are required to indemnify each other under certain circumstances. The Prime Broker Agreement is governed by New York law and provides
that disputes arising under it are subject to arbitration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Prime Broker Agreement
provides that the ________ Entities may have actual or potential conflicts of interest in connection with providing the Prime Broker Services
including that (i) orders to buy or sell LTC may be routed to the Prime Broker&rsquo;s platform (&ldquo;________ Platform&rdquo;) where
such orders may be executed against other ________ customers or with the Prime Broker acting as principal, (ii) the beneficial identity
of the purchaser or seller with respect to an order is unknown and therefore may inadvertently be another ________ customer, (iii) the
Prime Broker does not engage in front-running, but is aware of orders or imminent orders and may execute a trade for its own inventory
(or the account of an affiliate) while in possession of that knowledge and (iv) the Prime Broker may act in a principal capacity with
respect to certain orders (e.g., to fill residual order size when a portion of an order may be below the minimum size accepted by the
Connected Trading Venues). As a result of these and other conflicts, when acting as principal, the ________ Entities may have an incentive
to favor their own interests and the interests of their affiliates over the Trust&rsquo;s interests and have in place certain policies
and procedures that are designed to mitigate such conflicts. The Prime Broker will maintain appropriate and effective arrangements to
eliminate or manage conflicts of interest, including segregation of duties, information barriers and training. The Prime Broker will notify
the Trust of changes to its business that have a material adverse effect on the Prime Broker&rsquo;s ability to manage its conflicts of
interest. The ________ Entities shall execute trades pursuant to such policies and procedures; provided that the ________ Entities (a)
shall execute in a commercially reasonable amount of time (i) any marketable orders appropriately entered by the Trust and (ii) any other
pending orders by the Trust received by the ________ Entities that become marketable, (b) for any order that the Prime Broker receives
from the Trust, the Prime Broker will make commercially reasonable efforts to route orders for execution to the Connected Trading Venue
offering the most favorable price for the Trust&rsquo;s LTC sale orders, including consideration of any gas fees or similar fees related
to a particular Blockchain at the time that such orders are routed for execution, and (c) shall not knowingly enter into a transaction
for the benefit of (x) the ________ Entities, or (y) any other client received after the Trust&rsquo;s order, ahead of any order received
from the Trust. For purposes of the foregoing, a marketable order is a sell order equivalent to or better than the best bid price on any
Connected Trading Venue (or any venue that a ________ Entity may use) at a given moment. The Prime Broker agrees to direct the Trust&rsquo;s
orders in a manner that does not systematically favor the ________ Platform or Connected Trading Venues that provide financial incentives
to the Prime Broker; provided, however, that under certain circumstances the Prime Broker may choose to intentionally route to the ________
Platform due to temporary conditions affecting Connected Trading Venues (e.g., connectivity problems of the Connected Trading Venue or
funding constraints).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Trade Credit Lender</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor does not intend
to fund the Trading Account at the Prime Broker with sufficient LTC to pay fees and expenses and instead intends to utilize the Trade
Financing Agreement for such fees and expenses. To avoid having to pre-fund purchases or sales of LTC in connection with cash creations
and redemptions that utilize the Prime Broker as a LTC Trading Counterparty and any sales of LTC to pay the Sponsor&rsquo;s Fee and any
other Trust expenses not assumed by the Sponsor, to the extent applicable, the Trust may borrow LTC or cash as Trade Credit from the Trade
Credit Lender on a short-term basis. This allows the Trust to buy or sell LTC through the Prime Broker in an amount that exceeds the cash
or LTC credited to the Trust&rsquo;s Trading Account at the Prime Broker at the time such order is submitted to the Prime Broker, which
is expected to facilitate the Trust&rsquo;s ability to process cash creations and redemptions and pay the Sponsor&rsquo;s Fee and any
other Trust expenses not assumed by the Sponsor, to the extent applicable, in a timely manner by seeking to lock in the LTC price on the
trade date for creations and redemptions or the payment date for payment of the Sponsor&rsquo;s Fee or any other Trust Expenses not assumed
by the Sponsor, rather than waiting for the funds associated with the creation to be transferred by the Cash Custodian to the Prime Broker
prior to purchasing the LTC or for the LTC held in the Vault Account to be transferred to a Trading Account prior to selling the LTC.
The Trust is required by the terms of the ________ Credit Committed Trade Financing Agreement, which is part of the Prime Broker Agreement,
to repay any extension of Trade Credit by the Trade Credit Lender by 6:00 p.m. ET on the business day following the day that the Trade
Credit was extended to the Trust. The Trade Credit Lender is only required to extend Trade Credits to the Trust to the extent such LTC
or cash is actually available to the Trade Credit Lender. For example, if the Trade Credit Lender is unable to borrow LTC to lend to the
Trust as a Trade Credit, or there is a material market disruption (as determined by the Trade Credit Lender in good faith and in its sole
discretion), the Trade Credit Lender is not obligated to extend Trade Credits to the Trust. To secure the repayment of Trade Credits,
the Trust has granted a first-priority lien to the Trade Credit Lender over the assets in its Trading Account and Vault Account at the
________ Custodian. If the Trust fails to repay a Trade Credit within the required deadline, the Trade Credit Lender is permitted to take
control of LTC or cash credited to the Trust&rsquo;s Trading Account and Vault Account at the ________ Custodian (though it is required
to exhaust the Trading Account prior to taking control of assets in such Vault Account) and liquidate them to repay the outstanding Trade
Credit. Trade Credits bear interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Interest rates on Trade Credits
(&ldquo;financing fee&rdquo;) are calculated as follows: where settlement of Trade Credits is to occur on the business day following the
execution date, the applicable stated interest rate divided by 365 (e.g., 11% + Fed Funds Target)/365) is to be paid on the aggregate
Trade Credit amount borrowed by the Trust. As a hypothetical example to illustrate how the financing fee is calculated, on December 28,
2023, the Fed Funds Target rate was 5.50%, so the hypothetical financing fee, based on an applicable stated interest rate of 11% + Fed
Funds Target, as of that date would be 11% + 5.5% divided by 365 on the borrowed funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 91; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->86<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s LTC holdings
are maintained with the Custodians rather than the Prime Broker, except in the limited circumstances of LTC that is held temporarily in
the Trading Account for purchases and sales of LTC in connection with cash creation and cash redemption Basket settlement that utilize
the Prime Broker as a LTC Trading Counterparty, or sales of LTC in connection with the payment of Sponsor&rsquo;s Fee and any other Trust
expenses not assumed by the Sponsor, to the extent applicable. In connection with a redemption order utilizing the Prime Broker or to
pay the Sponsor&rsquo;s Fee and expenses not assumed by the Sponsor, the Trust will first borrow LTC from the Trade Credit Lender using
the Trade Financing Agreement, and then sell this LTC. In connection with a purchase order utilizing the Prime Broker, the Trust will
first borrow cash from the Trade Credit Lender using the Trade Financing Agreement, and then purchase LTC. The purpose of borrowing the
LTC or cash used in connection with cash creation and redemption or to pay these fees and expenses from the Trade Credit Lender is to
lock in the LTC price on the trade date or the payment date, as applicable, rather than waiting for the funds associated with the creation
to be transferred by the Cash Custodian to the Prime Broker prior to purchasing the LTC or for the LTC held in the Vault Accounts to be
transferred to a Trading Account prior to selling the LTC (a process which may take up to twenty-four hours, or longer if the Litecoin
Blockchain is experiencing delays in transaction confirmation, or if there are other delays).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event Trade Credits
are unavailable from the Trade Credit Lender or become exhausted, the Sponsor would require the Authorized Participant to deliver cash
on the trade date so that a purchase order can be settled in a timely manner. The Trust may use financing when the LTC remains in the
Vault Account at the ________ Custodian at the point of intended execution of a sale of LTC. In the event Trade Credits are unavailable
or become exhausted in this situation, the Sponsor would instruct the Custodians to move LTC out of the Vault Accounts into the Trading
Account so that it could be sold directly in response to a redemption order or to pay fees and expenses. Under these circumstances, the
Trust may not be able to lock in the LTC price on the trade date or the payment date, as applicable, and would instead have to wait until
the transfer from the Vault Accounts to the Trading Account was completed before selling the LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This could cause the execution
price associated with such trades, following the completion of the transfer, to materially deviate from the execution price that would
have existed on the original trade or payment date, which could negatively impact Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, to the extent
that the execution price for purchases and sales of LTC related to creations and redemptions and sales of LTC in connection with paying
the Sponsor&rsquo;s Fee and any other Trust expenses, to the extent applicable, deviate significantly from the Index price used to determine
the NAV of the Trust, the Shareholders may be negatively impacted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to a purchase
order, as between the Trust and the Authorized Participant, the Authorized Participant (or, if the Authorized Participant is acting as
agent for a Non-AP Arbitrageur, the Non-AP Arbitrageur) is responsible for the dollar cost of the difference between the value of LTC
calculated by the Trust Administrator for the applicable NAV per Share of the Trust and the price at which the Trust acquires the LTC
to the extent the price realized in buying the LTC is higher than the LTC price utilized in the NAV. To the extent the price realized
in buying the LTC is lower than the price utilized in the NAV, the Authorized Participant shall get to keep the dollar impact of any such
difference. With respect to a redemption order, between the Trust and the Authorized Participant, the Authorized Participant (or, if the
Authorized Participant is acting as agent for a Non-AP Arbitrageur, the Non-AP Arbitrageur) is responsible for the dollar cost of the
difference between the value of LTC calculated by the Trust Administrator for the applicable NAV per Share of the Trust and the price
at which the Trust sells LTC to raise the cash needed for the cash redemption order to the extent the price realized in selling the LTC
is lower than the LTC price utilized in the NAV. To the extent the price realized in selling the LTC is higher than the price utilized
in the NAV, the Authorized Participant shall get to keep the dollar impact of any such difference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 92; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->87<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_019"></A>THE CASH CUSTODIAN</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ serves as the cash
custodian for the Trust. The Cash Custodian is responsible for safekeeping all non-LTC assets of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will indemnify the
Cash Custodian from and against any and all claims, demands, losses, expenses and liabilities of any and every nature that the Cash Custodian
may sustain or incur or that may be asserted against the Cash Custodian by any person arising directly or indirectly (i) from the fact
that the relevant securities are registered in the name of any such nominee, (ii) from any action taken or omitted to be taken by the
Cash Custodian in good faith (a) at the request or direction of or in reliance on the advice of the Trust or Sponsor, or (b) upon Written
Instructions, or (iii) from the performance of its obligations under the Cash Custody Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Cash Custody Agreement,
the Cash Custodian has agreed to provide its services for an initial term of three years with an automatic renewal of successive one-year
terms unless earlier terminated pursuant to the Cash Custody Agreement. The Custodian may terminate its services for certain material
breaches of the Cash Custody Agreement and terminations as may be required or occasioned by law. Either party may terminate the Cash Custody
Agreement upon 90 days&rsquo; prior written notice to the other party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_020"></A>CONFLICTS OF
INTEREST</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor has not established
formal procedures to resolve all potential conflicts of interest. Consequently, investors may be dependent on the good faith of the respective
parties subject to such conflicts to resolve them equitably. Although the Sponsor attempts to monitor these conflicts, it is extremely
difficult, if not impossible, for the Sponsor to ensure that these conflicts do not, in fact, result in adverse consequences for the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prospective investors should
be aware that the Sponsor presently intends to assert that Shareholders have, by subscribing for Shares of the Trust, consented to the
following conflicts of interest in the event of any proceeding alleging that such conflicts violated any duty owed by the Sponsor to investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Sponsor</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor and its affiliates
and their respective officers, directors, employees and other related parties engage in a broad spectrum of activities and may expand
the range of services that they provide over time. The Sponsor and its related parties will generally not be restricted in the scope of
their business or in the performance of any such services (whether now offered or undertaken in the future), even if such activities could
give rise to conflicts of interest, and whether or not such conflicts are described herein. In the ordinary course of their business activities,
the Sponsor and its related parties may engage in activities where the interests of the Sponsor and its related parties or the interests
of their clients conflict with the interests of the Trust. Certain employees of the Sponsor also have responsibilities relating to the
business of one or more related parties. These employees are not restricted in the amount of time that may be allocated to the business
activities of the Sponsor&rsquo;s related parties, and the allocation of such employees&rsquo; time between the Sponsor and its related
parties may change over time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor and its related
parties are responsible for managing other accounts in addition to the services that they provide to the Trust, including other accounts
of the Sponsor or its affiliates. Other accounts may include, without limitation, private or SEC-registered funds, separately managed
accounts, offshore funds or accounts, or investments owned by the Sponsor or its affiliates. Management of other accounts in addition
to services provided to the Trust can present certain conflicts of interest. The other accounts might have similar or different investment
objectives or strategies as the Trust, or otherwise hold, purchase or sell investments that are eligible to be held, purchased or sold
by the Trust, or may take positions that are opposite in direction from those taken by the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may devote unequal
time and attention to the management of different accounts. As a result, the Sponsor may not be able to fulfill its obligations to the
Trust as might be the case if it were to devote substantially more attention to the management of a single account. The effects of this
potential conflict may be more pronounced where accounts overseen by the Sponsor have different investment strategies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 93; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->88<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A conflict of interest arises
where the financial or other benefits available to the Sponsor or its related parties differ among the accounts that it manages. Where
the structure of the Sponsor&rsquo;s or its related party&rsquo;s fee differs among accounts (such as where certain accounts pay higher
management fees or a performance or incentive fee), the Sponsor might be motivated to help certain accounts over others. In addition,
the Sponsor might be motivated to favor accounts in which it has an interest and/or its related parties have interests. Similarly, the
desire to maintain or raise assets under management or to enhance the Sponsor&rsquo;s or its related parties&rsquo; performance record
or to derive other rewards, financial or otherwise, could influence the Sponsor to give preferential treatment to those accounts that
could most significantly benefit the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust&rsquo;s service
providers (including its Administrator, auditor and legal counsel) may provide services to other pooled investment vehicles with similar
investment strategies and objectives and, accordingly, may have conflicts of interest. The Trust&rsquo;s Sponsor and other service providers
and their principals, employees or affiliates may invest or trade in digital assets for their own accounts, which activities may conflict
or compete with the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor or its affiliates
may purchase Shares from the Trust from time to time, and may hold a material position in the Trust. The Trust will not receive any of
the proceeds from the resale by the Sponsor or its affiliates of these Shares, and the sale of such Shares may impact the price at which
you may be able to sell your Shares. The Sponsor and its affiliates reserve the right, subject to compliance with applicable law, to sell
into the market or redeem through an Authorized Participant at any time some or all of the Shares of the Trust acquired for their own
accounts. The Sponsor or its affiliates face conflicting interests in determining whether, when and in what amount to sell or redeem Shares
of the Trust. The Sponsor and its affiliates are under no obligation to consider the effect of sales or redemptions on the Trust and other
Shareholders in deciding whether to sell or redeem their Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is responsible
for selecting and engaging the Trust&rsquo;s service providers, including the Benchmark Administrator. To the extent that the Sponsor
has other commercial arrangements with the service providers, the Sponsor may face conflicts of interest with respect to its oversight
and supervision of the service providers. Further, to the extent that the Sponsor has investments in LTC and/or in Shares, and due to
the fact that the Sponsor&rsquo;s fee is payable based on the value of the Shares, the Sponsor may face potential conflicts of interest
with respect to the Benchmark Administrator&rsquo;s valuation of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ is a Custodian of
the Trust and an affiliate of the Sponsor, which may create conflicts of interest as a result of such relationship. ________ does not
share officers or personnel with the Sponsor. Shareholders should be aware that ________ will not take the interests of the Shareholders
into consideration when carrying out its duties under the ________ Custody Agreement. The interests of ________ and the Shareholders may
not be aligned. ________ will have no responsibility or liability to the Shareholders or the Trust except as provided in the ________
Custody Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Proprietary Trading/Other Clients</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because the officers of the
Sponsor may trade LTC for their own personal trading accounts (subject to certain internal trading policies and procedures) at the same
time that they are managing the account of the Trust, prospective investors should be aware that the activities of the officers of the
Sponsor, subject to their fiduciary duties, may, from time-to-time, result in taking positions in their personal trading accounts which
are opposite of the positions taken for the Trust. Records of the Sponsor&rsquo;s officers&rsquo; personal trading accounts will not be
available for inspection by Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_021"></A>DESCRIPTION
OF THE SHARES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust is authorized under
the Trust Agreement to create and issue an unlimited number of Shares. Shares will be issued only in Baskets (a Basket equals a block
of 5,000 Shares) and only upon the order of an Authorized Participant. The Shares represent units of fractional undivided beneficial interest
in and ownership of the Trust and have no par value. Any creation and issuance of Shares above the amount registered on the registration
statement of which this prospectus is a part will require the registration of such additional Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Description of Limited Rights</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares do not represent
a traditional investment and should not be viewed as similar to &ldquo;shares&rdquo; of a corporation operating a business enterprise
with management and a board of directors. A Shareholder will not have the statutory rights normally associated with the ownership of shares
of a corporation. Each Share is transferable, is fully paid and non-assessable, and entitles the holder to vote on the limited matters
upon which Shareholders may vote under the Trust Agreement. For example, Shareholders do not have the right to elect directors and will
not receive dividends. The Shares do not entitle their holders to any conversion or pre-emptive rights or, except as provided below, any
redemption rights or rights to distributions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 94; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->89<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Voting and Approvals</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shareholders of the Trust
take no part in the management or control, and have no voice in, the Trust&rsquo;s operations or business. Shareholders have very limited
voting rights as set forth in the Trust Agreement. However, certain actions, such as amendments or modifications that appoint a new sponsor
(upon the withdrawal, removal or the adjudication or admission of bankruptcy or insolvency of the Sponsor) require the consent of Shareholders
owning a majority (over 50%) of the outstanding Shares of the Trust (not including Shares held by the Sponsor or its Affiliates).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor will generally
have the right to amend the Trust Agreement as it applies to the Trust provided that the Shareholders have the right to vote only if expressly
required under Delaware or federal law or rules or regulations of the Exchange, or if submitted to the Shareholders by the Sponsor at
its sole discretion. No amendment affecting the Trustee will be binding upon or effective against the Trustee unless consented to by the
Trustee in the form of an instruction letter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Distributions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Trust is terminated
and liquidated, the Sponsor will distribute to the Shareholders any amounts of the cash proceeds of the liquidation remaining after the
satisfaction of all outstanding liabilities of the Trust and the establishment of reserves for applicable taxes, other governmental charges
and contingent or future liabilities as the Sponsor shall determine. Accordingly, Shareholders of record at the time of a liquidation
may receive either LTC or cash. See &ldquo;Description of the Trust Agreement&mdash;The Trustee&mdash;Termination of the Trust.&rdquo;
Shareholders of record on the record date fixed by the Transfer Agent for a distribution will be entitled to receive their <I>pro rata</I>
portion of any distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Redemption of the Shares</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares may be redeemed
only by or through an Authorized Participant and only in whole Baskets. See &ldquo;Description of Creation and Redemption of Shares.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Book-Entry Form</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Individual certificates will
not be issued for the Shares. Instead, one or more global certificates have been deposited by the Transfer Agent with DTC and registered
in the name of Cede &amp; Co., as nominee for DTC. The global certificates will evidence all of the Shares outstanding at any time. Under
the Trust Agreement, Shareholders are limited to (1) DTC Participants such as banks, brokers, dealers and trust companies, (2) those who
maintain, either directly or indirectly, a custodial relationship with a DTC Participant (&ldquo;Indirect Participants&rdquo;), and (3)
those banks, brokers, dealers, trust companies and others who hold interests in the Shares through DTC Participants or Indirect Participants.
The Shares are transferable only through the book-entry system of DTC. Shareholders who are not DTC Participants may transfer their Shares
through DTC by instructing the DTC Participant holding their Shares (or by instructing the Indirect Participant or other entity through
which their Shares are held) to transfer the Shares. Transfers will be made in accordance with standard securities industry practice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Share Splits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Sponsor believes that
the per-Share price in the public market for Shares has risen or fallen outside a desirable trading price range, the Sponsor may direct
the Transfer Agent to declare a split or reverse split in the number of Shares outstanding and to make a corresponding change in the number
of Shares constituting a Basket.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 95; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->90<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_022"></A>CUSTODY OF
THE TRUST&rsquo;S LTC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>LTC Custody Generally</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust has entered into
the Custody Agreements, pursuant to which the Custodians will custody all of the Trust&rsquo;s LTC, other than that which may be maintained
in a trading account (the &ldquo;Trading Account&rdquo;) held with the Prime Broker, which is an affiliate of the ________ Custodian,
in segregated accounts from time to time (the &ldquo;Vault Accounts&rdquo;). The Custodians will keep all of the private keys associated
with the Trust&rsquo;s LTC held by the Custodians in the Vault Accounts in &ldquo;cold storage,&rdquo; which refers to a safeguarding
method by which the private keys corresponding to the Trust&rsquo;s LTC are generated and stored in an offline manner using computers
or devices that are not connected to the Internet, which is intended to make them more resistant to hacking. By contrast, in hot storage,
the private keys are held online, where they are more accessible, leading to more efficient transfers, though they are potentially more
vulnerable to being hacked. While the Custodians will generally keep a substantial portion of the Trust&rsquo;s LTC in cold storage on
an ongoing basis, from time to time, portions of the Trust&rsquo;s LTC will be held outside of cold storage temporarily in the Trading
Account maintained by the Prime Broker as part of trade facilitation in connection with creations and redemptions of Baskets or to sell
LTC including to pay Trust expenses. The Trust&rsquo;s LTC held in the Vault Accounts by the Custodians are held in segregated wallets
and therefore are not commingled with the Custodians&rsquo; or other customer assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A portion of the Trust&rsquo;s
LTC holdings and cash holdings from time to time may be held with the Prime Broker in the Trading Account in connection with creations
and redemptions of Baskets utilizing the Prime Broker as LTC Trading Counterparty and any sales of LTC to pay the Sponsor&rsquo;s Fee
and Trust expenses not assumed by the Sponsor. Within the Trust&rsquo;s Trading Account, the Prime Broker Agreement provides that the
Trust does not have an identifiable claim to any particular LTC (and cash). Instead, the Trust&rsquo;s Trading Account represents an entitlement
to a <I>pro </I>rata share of the LTC (and cash) the Prime Broker holds on behalf of customers who hold similar entitlements against the
Prime Broker. In this way, the Trust&rsquo;s Trading Account represents an omnibus claim on the Prime Broker&rsquo;s LTC (and cash) held
on behalf of the Prime Broker&rsquo;s customers. The Prime Broker holds the LTC associated with customer entitlements across a combination
of omnibus cold wallets, omnibus &ldquo;hot wallets&rdquo; (meaning wallets whose private keys are generated and stored online, in Internet-connected
computers or devices) or in omnibus accounts in the Prime Broker&rsquo;s name on a trading venue (including third-party venues and the
Prime Broker&rsquo;s own execution venue) where the Prime Broker executes orders to buy and sell LTC on behalf of its clients. Within
such omnibus hot and cold wallets and accounts, the Prime Broker has represented to the Sponsor that it keeps the majority of assets in
cold wallets, to promote security, while the balance of assets are kept in hot wallets to facilitate rapid withdrawals. However, the Sponsor
has no control over, and for security reasons the Prime Broker does not disclose to the Sponsor, the percentage of LTC that the Prime
Broker holds for customers holding similar entitlements as the Trust which are kept in omnibus cold wallets, as compared to omnibus hot
wallets or omnibus accounts in the Prime Broker&rsquo;s name on a trading venue. The Prime Broker has represented to the Sponsor that
the percentage of assets maintained in cold versus hot storage is determined by ongoing risk analysis and market dynamics, in which the
Prime Broker attempts to balance anticipated liquidity needs for its customers as a class against the anticipated greater security of
cold storage. Generally, the Trust will only hold LTC in the Trading Account to the extent the Sponsor reasonably expects is necessary
in connection with the redemption of Shares by Authorized Participants or necessary to pay the Trust&rsquo;s expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Other than the LTC held with
the Prime Broker in the Trading Account, the Sponsor will allocate the Trust&rsquo;s LTC between Vault Accounts at the ________ Custodian,
________ and ________. In determining the amount and percentage of the Trust&rsquo;s LTC to allocate to each Vault Account, the Sponsor
will consider (i) the concentration of the Trust&rsquo;s LTC at each Custodian, (ii) the Sponsor&rsquo;s assessment of the safety and
security policies and procedures of each Custodian, (iii) the insurance policies of each Custodian, (iv) the fees and expenses associated
with the storage of the Trust&rsquo;s LTC at each Custodian, (v) the fees and expenses associated with the transfer to or from the Vault
Account at each Custodian, and (vi) any other factor the Sponsor deems relevant in making the allocation determination. The Sponsor does
not intend to disclose the amount or percentage of the Trust&rsquo;s LTC held at the ________ Custodian, ________ or ________, and the
Sponsor may change the allocation between the Custodians at any time and without notice to Shareholders. The fees and expenses associated
with the transfer of LTC between the Vault Accounts at each Custodian will be borne by the Sponsor, not the Trust or the Shareholders.
Any transfer of LTC between the Vault Accounts at each Custodian will occur &ldquo;on-chain&rdquo; over the Litecoin Blockchain. On-chain
transactions are subject to all of the risks of the Litecoin Blockchain, including the risk that transactions will be made erroneously
and are generally irreversible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 96; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->91<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Custody of LTC typically involves
the generation, storage and utilization of private keys. These private keys are used to effect transfer transactions (i.e., transfers
of LTC from an address associated with the private key to another address). Cold storage is a safeguarding method with multiple layers
of protections and protocols, by which the private key(s) corresponding to the Trust&rsquo;s LTC is (are) generated and stored in an offline
manner. Private keys are generated in offline computers that are not connected to the Internet so that they are resistant to being hacked.
Cold storage of private keys may involve keeping such keys on a non-networked computer or electronic device or storing the private keys
on a storage device or printed medium and deleting the keys from all computers. Such private keys are stored in cold storage facilities
within the United States and Europe, exact locations of which are not disclosed for security reasons. A limited number of employees at
the Custodians are involved in private key management operations, and the Custodians have represented that no single individual has access
to full private keys. While the Custodians will generally keep a substantial portion of the Trust&rsquo;s LTC in cold storage on an ongoing
basis, from time to time, portions of the Trust&rsquo;s LTC will be held in the Trading Account outside of cold storage temporarily as
part of trade facilitation in connection with creations and redemptions of Baskets or to sell LTC to pay Trust expenses. The determination
of what portion of the Trust&rsquo;s LTC to store in the Trading Account and for what duration will be made by the Sponsor at its sole
discretion. Please see &ldquo;Cybersecurity Risks Related to LTC,&rdquo; &ldquo;Risks Related to the Markets and Service Ecosystem for
LTC,&rdquo; and &ldquo;Risks Related to the Trust and the Shares&rdquo; for a discussion of custody risks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Even though LTC is only moved
into the Trading Account in connection with and to the extent of purchases and sales of LTC by the Trust utilizing the Prime Broker as
LTC Trading Counterparty and such LTC is swept from the Trust&rsquo;s Trading Account to the Trust&rsquo;s Vault Account at the ________
Custodian each trading day pursuant to a regular end-of-day sweep process, there are no policies that would limit the amount of LTC that
can be held temporarily in the Trading Account maintained by the Prime Broker. This could create greater risk of loss of the Trust&rsquo;s
LTC, which could cause Shareholders to suffer losses. Under normal market conditions, the Sponsor&rsquo;s policy is to keep at least 95%
of the Trust&rsquo;s LTC in the Vault Accounts and no more than 5% of the Trust&rsquo;s LTC in the Trading Account to cover the reasonably
anticipated short-term transaction needs of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Custodians may receive
deposits of LTC but may not send LTC without the use of the corresponding private keys. In order to send LTC when the private keys are
kept in cold storage, unsigned transactions must be physically transferred to the offline cold storage facility and signed using a software/hardware
utility with the corresponding offline keys. At that point, a Custodian can upload the fully signed transaction to an online network and
transfer the LTC. Because the Custodians may need to retrieve private keys from offline storage prior to initiating transactions, the
initiation or crediting of withdrawals or other transactions may be delayed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Custodians carefully consider
the design of the physical, operational and cryptographic systems for secure storage of the Trust&rsquo;s private keys in an effort to
lower the risk of loss or theft. No such system is perfectly secure and loss or theft due to operational or other failure is always possible.
See &ldquo;Risk Factors &ndash; Conflicts of Interest &ndash; <I>The Custodians&rsquo; ability to adopt technology in response to changing
security needs or trends poses a challenge to the safekeeping of the Trust&rsquo;s LTC.</I>&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust may engage third-party
custodians or vendors besides the Custodians and Cash Custodian to provide custody and security services for all or a portion of its LTC
and/or cash, and the Sponsor will pay the custody fees and any other expenses associated with any such third-party custodian or vendor.
The Sponsor is responsible for overseeing the Custodians and the Trust&rsquo;s other service providers. The Sponsor may, in its sole discretion,
add or terminate Custodians at any time. The Sponsor may, in its sole discretion, change the custodians for the Trust&rsquo;s LTC holdings,
but it will have no obligation whatsoever to do so or to seek any particular terms for the Trust from other such custodians. However,
the Sponsor will only enter into LTC custody arrangements with custodians that meet the Sponsor&rsquo;s criteria, including an agreement
to maintain Trust assets in a segregated account, to maintain insurance and to store the Trust&rsquo;s private keys in cold storage or
in such other manner as the Sponsor determines provides reasonable protection for the Trust&rsquo;s assets from loss or theft. The Trust
may hold cash and cash equivalents on a temporary basis to pay expenses or facilitate creation and redemption transactions. The Trust
has entered into a cash custody agreement with Cash Custodian under which Cash Custodian acts as custodian of the Trust&rsquo;s cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Custody with the ________ Custodian</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the terms of the ________
Custody Agreement, the Sponsor maintains sole discretion in allocating LTC among the Vault Accounts and the Trading Account. LTC custodied
by the Custodians in the Vault Accounts is not commingled with assets of Custodians or their respective affiliates or with assets of other
customers of Custodian. The ________ Custodian has also agreed in the ________ Custody Agreement that it will not, directly or indirectly,
lend, pledge, hypothecate or rehypothecate any of the Trust&rsquo;s LTC, and that the Trust&rsquo;s LTC assets are not treated as general
assets of the ________ Custodian but are instead considered custodial assets that remain the Trust&rsquo;s property. Additionally, the
________ Custodian has agreed to provide the Trust or its authorized independent public accountant with confirmation of or access to information
sufficient to confirm the LTC held by the ________ Custodian for the Trust and that the Trust&rsquo;s LTC is held in a separate, segregated
account under the Trust&rsquo;s name.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The ________ Custodian&rsquo;s
internal audit team performs periodic internal audits over custody operations, and the ________ Custodian has represented that Systems
and Organizational Control (&ldquo;SOC&rdquo;) attestations covering private key management controls are also performed on the ________
Custodian by an external provider.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 97; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->92<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The ________ Custodian&rsquo;s
parent, ________ (&ldquo;________&rdquo;) maintains a commercial crime insurance policy in an amount up to $320 million, which is intended
to cover the loss of client assets held by ________ and all of its subsidiaries, including the ________ Custodian and the Prime Broker
(collectively, ________ and its subsidiaries are referred to as the &ldquo;________ Insureds&rdquo;), including from employee collusion
or fraud, physical loss including theft, damage of key material, security breach or hack, and fraudulent transfer. The insurance maintained
by the ________ Insureds is shared among all of ________&rsquo;s customers, is not specific to the Trust or to customers holding LTC with
the ________ Custodian or the Prime Broker and may not be available or sufficient to protect the Trust from all possible losses or sources
of losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the event of a fork of
the Litecoin Blockchain, the ________ Custodian and the Prime Broker may, in their sole discretion, determine whether or not to support
(or cease supporting) either branch of the Litecoin Blockchain entirely, provided that they shall use commercially reasonable efforts
to avoid ceasing to support both branches of such forked protocol and will support, at a minimum, the original digital asset. Provided
that the ________ Custodian and the Prime Broker shall make commercially reasonable efforts to assist the Trust and take the necessary
steps to enable the Trust to retrieve and/or obtain any assets related to a fork, airdrop or similar event, neither the ________ Custodian
nor the Prime Broker shall have any liability, obligation or responsibility whatsoever arising out of or relating to the operation of
an unsupported branch of the Litecoin Blockchain in the event of a fork. Neither the ________ Custodian nor the Prime Broker have any
responsibility to support airdrops. The Trust Agreement provides, and the Sponsor has communicated to the Custodians, that the Trust disclaims
all rights to Incidental Rights and IR Virtual Currencies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the ________ Custody
Agreement, the ________ Custodian&rsquo;s liability is subject to the following limitations, among others: (i) other than with respect
to claims and losses arising from fraud or willful misconduct, among others, the ________ Custodian&rsquo;s aggregate liability under
the ________ Custody Agreement shall not exceed the greater of (A) the aggregate fees paid by the Trust to the ________ Custodian in the
12 months prior to the event giving rise to the ________ Custodian&rsquo;s liability, and (B) the value of the affected LTC giving rise
to the ________ Custodian&rsquo;s liability; (ii) the ________ Custodian&rsquo;s aggregate liability in respect of each cold storage address
shall not exceed $100 million; and (iii) in respect of any incidental, indirect, special, punitive, consequential or similar losses, the
________ Custodian is not liable, even if the ________ Custodian has been advised of or knew or should have known of the possibility thereof.
The ________ Custodian is not liable for delays, suspension of operations, failure in performance, or interruption of service to the extent
it is directly due to a cause or condition beyond the reasonable control of the ________ Custodian.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Also pursuant to the ________
Custody Agreement, the Prime Broker, an affiliate of the Custodian, may provide prime broker services, including LTC trade execution,
from time to time as requested by the Sponsor. The Trust may engage in purchases or sales of LTC by placing orders with the Prime Broker.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Custody with ________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ is also authorized
to safeguard the Trust&rsquo;s LTC holdings allocated to it by the Sponsor. ________ maintains one or more custody accounts on its books,
pursuant to the terms of the ________ Custody Agreement, for the receipt, safekeeping, and maintenance of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As a regulated custodian,
________ is subject to a detailed statutory and regulatory framework, including holding customer assets in segregated client accounts
on behalf of customers. 100% of Trust assets and private keys are safekept by ________ and will be held in cold storage in segregated
accounts and are never commingled with ________ or other client assets. ________ applies industry standards, such as CryptoCurrency Security
Standard (CCSS) and SOC1 and SOC2, while also working with the most trusted brands in the industry and offering clients comprehensive
insurance solutions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The ________ ecosystem and
architecture for private key management include the ________ Platform, hardware security modules (&ldquo;HSMs&rdquo;) and modular services.
The ________ cold custody solution is built on ________&rsquo;s security to manage keys on behalf of customers. ________ only signs transactions
that have been authorized by the Sponsor and follow the policies set by the account administrators.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The primary keys and backup
keys are created offline using an Offline Vault Console (&ldquo;OVC&rdquo;) on air gapped laptops during a secure ceremony to create hardened
cryptographic seeds that power the ________ solution. This is to ensure only machines which have no access to the internet and are pristine
are able to see private key material.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Undisclosed personnel at ________
hold the sharded keys. When they are reconstituted, they are able to sign a transaction which moves funds in the public blockchain. To
mitigate collusion, the individuals who have the sharded keys are different from those who have access to the vaults where the signings
happen.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 98; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->93<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The private key is reconstituted
in the OVC, but only in internal memory. At no point is it displayed or shown to any user. After signing is done, the key is no longer
available in memory. The OVC is run in a read-only disk, so once the laptop is powered off, there is no non-volatile storage of any kind
to write back to disk. The OVC operates using a RAM disk, where it simulates a real hard disk, but it is completely ephemeral and is wiped
as soon as the machine is power cycled or rebooted, thus wiping the reconstituted private key and preventing it from being copied or compromised.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ is a South Dakota
trust company and the private keys are strategically distributed across various geographic locations within the United States. In order
to enhance security measures, ________ refrains from disclosing the exact locations of these keys.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At time of wallet creation,
________ creates a unique key pair within its HSM in order to give each client a unique wallet on-chain. These online keys are wrapped
by the ________ HSM and stored within ________&rsquo;s data vault for the ________ Platform keys used to sign transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As all custody wallets are
segregated, the existence of LTC held by the Trust can be verified on-chain by the Sponsor or any other authorized party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ cold wallets are
supported by a $250 million insurance policy issued by Lloyd&rsquo;s of London. The specifics of the policy include Cyber Insurance, E&amp;O,
general specie. Any copying and theft of private keys, insider theft or dishonest acts by ________ employees or executives, and loss of
keys directly related to ________&rsquo;s custody of keys would be covered by this amount at minimum. This insurance policy is shared
among all of ________&rsquo;s clients and is not specific to the Trust or to customers holding LTC and may not be available or sufficient
to protect the Trust from all possible losses or sources of losses. The Sponsor may purchase additional insurance coverage through ________&rsquo;s
underwriter, though the Sponsor has not purchased such additional insurance cover as of the date of this Prospectus. ________ is not FDIC-insured.
________ has established a business continuity plan that will support its ability to conduct business in the event of a significant business
disruption. This plan is reviewed and updated annually, and can be updated more frequently, if deemed necessary, by ________ in its sole
discretion. Should ________ be impacted by a significant business disruption, ________ aims to minimize business interruption as quickly
and efficiently as possible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________&rsquo;s fork policy
determines that in the event of an upcoming modification to the Litecoin Blockchain that could result in a digital asset network fork
or airdrop, ________ will use best commercial efforts to provide the value of the forked digital asset. In addition to ________&rsquo;s
fork policy, ________ adheres to the fork policy outlined by Compass Financial Technologies. ________ may not support airdrops, side chains,
or other derivative, enhanced, or forked protocols, tokens, or coins which supplement or interact with an asset supported by ________
and assumes absolutely no responsibility in respect to new protocols. The Trust Agreement provides, and the Sponsor has communicated to
the Custodians, that the Trust disclaims all rights to Incidental Rights and IR Virtual Currencies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The ________ Custody Agreement
commenced on the effective date, as detailed in the agreement, and will continue for one&nbsp;(1)&nbsp;year, unless earlier terminated
in accordance with the terms of the ________ Custody Agreement. After the initial term, the ________ Custody Agreement will automatically
renew for successive renewal terms, as established on the agreement, unless either party notifies the other of its intention not to renew
with prior notice. ________ may terminate the ________ Custody Agreement for any reason upon providing at least thirty (30) days&rsquo;
written notice to the Trust and to the Sponsor, or immediately if ________ perceives a risk of legal or regulatory non-compliance associated
with the Trust&rsquo;s custodial account activity, among others. The Sponsor may terminate the ________ Custody Agreement at any time
upon providing at least thirty (30) days&rsquo; written notice to ________, paying outstanding amounts and an early termination fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Custody with ________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ is also authorized
to safeguard the Trust&rsquo;s LTC holdings allocated to it by the Sponsor. ________ maintains one or more custody accounts on its books,
pursuant to the terms of the ________ Custody Agreement, for the receipt, safekeeping, and maintenance of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">LTC custodied by ________
will be segregated at the wallet level from the assets of ________ or their respective affiliates or with assets of any other customers
of ________. ________ has also agreed in the ________ Custody Agreement that it shall not have the right to use, lend, pledge or hypothecate
any of the Trust&rsquo;s LTC, or create or, to the extent reasonably possible, permit others to create, any encumbrance in the Trust&rsquo;s
LTC. ________ shall separately identify all Trust LTC assets on its books and records as belonging to the Trust (and, accordingly, not
to ________ (in its own or any other capacity), any other client of ________ or any third party). Additionally, ________ has agreed to
provide the Trust and, if the Trust so directs, the Trust&rsquo;s auditors with reports relating to account balances, value, transfers
and other information and to provide the Trust and their respective auditors such access as they may reasonably require to perform their
duties. Any such access shall be subject to execution of a confidentiality agreement and agreement to ________&rsquo;s security procedures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 99; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->94<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________&rsquo;s fork policy
provides that any new digital asset which results from a hard fork in the Litecoin Blockchain during the term of the ________ Custody
Agreement shall, on the Trust&rsquo;s request, be assessed by ________ for its compatibility with the Platform (&ldquo;Platform&rdquo;
is defined in the ________ Custody Agreement as the secure platform interface and technical solution which enables the Trust to access
and utilize the vault services provided under the agreement). ________ will notify the Trust, following such assessment, whether the new
digital asset in question is compatible with the Platform and is compliant with any other internal requirements of ________. In which
case, such new digital asset shall, from its inception at the relevant fork be deemed: (i) included within the definition of &ldquo;Compatible
Asset&rdquo; in the ________ Custody Agreement; and (2) as a distinct form of digital asset to LTC for all purposes (including, for the
avoidance of doubt, the further application of ________&rsquo;s fork policy). All holdings of the new digital asset in the Trust&rsquo;s
account(s) will be transferred into a new account for the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ does not automatically
credit any digital asset the Trust may obtain or otherwise be able to obtain through an airdrop. It is the Trust&rsquo;s responsibility
under the ________ Custody Agreement to monitor any airdrops, and to notify ________ of such airdrops. ________ will, following such notification,
assess any such airdrop, on a case-by-case basis, and may decide, in its sole discretion, whether to support such an airdrop, or provide
any services in connection with the digital assets obtained or obtainable through that airdrop.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">________ maintains comprehensive
insurance coverage in relation to digital assets under custody, that is reviewed and updated on an ongoing basis. This program encompasses
crime and specie policies and protects against risks related to third-party computer and fund transfer fraud, employee theft, collusion,
and physical device or backup theft, loss or damage. The policy is designed to protect all clients and their on-chain segregated custody
wallets, the $50 million (USD) limit is aggregated and pooled and not dedicated specifically to any individual client.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The ________ Custody Agreement
commenced on the effective date, as detailed in the agreement, and will continue for thirty-six&nbsp;(36) months, unless earlier terminated
in accordance with the terms of the ________ Custody Agreement. After the initial term, the ________ Custody Agreement will automatically
renew for successive twelve (12) month periods, as established on the agreement, unless either party notifies the other of its intention
to terminate in accordance with the terms of the agreement. ________ may terminate the ________ Custody Agreement for any reason upon
providing at least three (3) months&rsquo; written notice to the Trust, or immediately upon written notice to the Trust if: (i) ________
determines, in its sole discretion, that continued provision of the custody services would result in violation of applicable law or regulation
relating to either ________ or the Trust and the parties are unable to amend the relevant provisions of the ________ Custody Agreement
in accordance with the terms of the agreement, (ii) a force majeure event, as defined in the ________ Custody Agreement, continues for
at least forty-five (45) days, or (iii) the Trust does not utilize the custody services set forth in the ________ Custody Agreement for
a period of twelve (12) months from the effective date of the agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_023"></A>DESCRIPTION
OF CREATION AND REDEMPTION OF SHARES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust creates and redeems
Shares from time to time, but only in one or more Baskets. Baskets are only made in exchange for delivery to the Trust or the distribution
by the Trust of the amount of cash represented by the Baskets being created or redeemed (the &ldquo;Basket Deposit&rdquo;). The amount
of cash required in a Basket Deposit (the &ldquo;Basket Cash Deposit&rdquo;) is based on the quantity or value of the quantity, as applicable,
of LTC and cash attributable to each Share of the Trust (net of accrued but unpaid Sponsor&rsquo;s Fees and any accrued but unpaid Extraordinary
Expenses) being created or redeemed determined as of 4:00 p.m. ET on the day the order to create or redeem Baskets is properly received.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Baskets will only made in
exchange for delivery to the Trust or the distribution by the Trust of the amount of cash represented by the Shares being created or redeemed,
the amount of which is based on the value of the LTC attributable to each Share of the Trust (net of accrued but unpaid Sponsor&rsquo;s
Fees and any accrued but unpaid expenses or liabilities) being created or redeemed determined as of 4:00 p.m. ET on the day the order
to create or redeem Baskets is properly received. The Trust will engage in LTC transactions for converting cash into LTC (in association
with purchase orders) and LTC into cash (in association with redemption orders). The Trust will conduct its LTC purchase and sale transactions
as described above under the heading &ldquo;Activities of the Trust &ndash; Purchases and Sales of LTC.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 100; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->95<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Authorized Participants are
the only persons that may place orders to create and redeem Baskets. Authorized Participants must be (1) registered broker-dealers or
other securities market participants, such as banks or other financial institutions, that are not required to register as broker-dealers
to engage in securities transactions as described below, and (2) DTC Participants. To become an Authorized Participant, a person must
enter into an Authorized Participant Agreement. The Authorized Participant Agreement provides the procedures for the creation and redemption
of Shares and for the delivery of the cash required for such creation and redemptions. The Authorized Participant Agreement and the related
procedures attached thereto may be amended by the Trust and the Sponsor, without the consent of any Shareholder or Authorized Participant.
Authorized Participants pay the Transfer Agent a fee for each order they place to create or redeem one or more Baskets (the &ldquo;Transfer
Agent Fee&rdquo;). In addition, an Authorized Participant is responsible for any operational processing and brokerage costs, transfer
fees, financing fees, network fees and stamp taxes incurred in connection with the satisfaction of any creation or redemption orders (the
&ldquo;Execution Charges,&rdquo; and collectively with the Transfer Agent Fee, the &ldquo;Transaction Fees&rdquo;). The Transaction Fees
may be reduced, increased or otherwise changed by the Sponsor. Authorized Participants (or their designees) who make deposits of cash
with the Trust in exchange for Shares receive no fees, commissions or other form of compensation or inducement of any kind from either
the Trust or the Sponsor, and no such person will have any obligation or responsibility to the Sponsor or the Trust to effect any sale
or resale of Shares. The Authorized Participants will deliver only cash to create Shares and will receive only cash when redeeming Shares.
Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or receive LTC as part of the creation or redemption
process or otherwise direct the Trust or a third party with respect to purchasing, holding, delivering, or receiving LTC as part of the
creation or redemption process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Certain Authorized Participants
are expected to be capable of participating directly in the spot LTC markets. Some Authorized Participants or their affiliates may from
time to time buy or sell LTC and may profit in these instances. To the extent that the activities of Authorized Participants have a meaningful
effect on the LTC market, it could affect the price of LTC and impact the ability of the Authorized Participants to effectively arbitrage
the difference between the price at which the shares trade and the net asset value of the Trust. While the Sponsor currently expects that
Authorized Participants&rsquo; direct activities in the LTC or securities markets in connection with the creation and redemption activities
of the Trust will not significantly affect the price of LTC or the Shares, the impact of the activities of the Trust and its Authorized
Participants on LTC or securities markets is unknown and beyond the control of the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Authorized Participant
will be required to be registered as a broker-dealer under the Exchange Act and a member in good standing with FINRA or exempt from being
or otherwise not required to be licensed as a broker-dealer or a member of FINRA, and will be qualified to act as a broker or dealer in
the states or other jurisdictions where the nature of its business so requires. Certain Authorized Participants may also be regulated
under federal and state banking laws and regulations. Each Authorized Participant has its own set of rules and procedures, internal controls
and information barriers as it determines is appropriate in light of its own regulatory regime.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following description
of the procedures for the creation and redemption of Baskets is only a summary and a Shareholder should refer to the relevant provisions
of the Trust Agreement and the form of Authorized Participant Agreement for more detail. The Trust Agreement and the form of Authorized
Participant Agreement are filed as exhibits to the registration statement of which this prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Authorized Participants will
place orders through the Transfer Agent. The Transfer Agent will coordinate with the Trust&rsquo;s Cash Custodian in order to facilitate
settlement of the Shares and cash as described in more detail in the &ldquo;&mdash;Creation Procedures&rdquo; and &ldquo;&mdash;Redemption
Procedures&rdquo; sections below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Creation Procedures </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On any business day, an Authorized
Participant may place an order with the Transfer Agent to create one or more Baskets. Purchase orders must be placed by 1:00 p.m. ET or
the close of regular trading on the Exchange, whichever is earlier. The day on which a valid order is received by the Transfer Agent is
considered the &ldquo;Purchase Order Date.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The manner by which creations
are made is dictated by the terms of the Authorized Participant Agreement. Creation orders are denominated and settled in cash (&ldquo;Cash
Creation Order&rdquo;). By placing a Cash Creation Order, an Authorized Participant agrees to facilitate the deposit of cash with the
Cash Custodian. If an Authorized Participant fails to consummate the foregoing, the order will be cancelled or delayed until the full
cash deposit has been received. An Authorized Participant may not withdraw a creation order without the prior consent of the Sponsor at
its discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Following an Authorized Participant&rsquo;s
Cash Creation Order, the Trust&rsquo;s account with the Cash Custodian (the &ldquo;Cash Account&rdquo;) must be credited with the required
cash by the end of the Purchase Order Date. Upon receipt of the cash deposit amount in the Cash Account, the Cash Custodian will notify
the Transfer Agent, the Authorized Participant and the Sponsor that the cash has been deposited. The Transfer Agent will then direct DTC
to credit the number of Shares created to the Authorized Participant&rsquo;s DTC account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent not held to
facilitate redemption orders or pay the Trust&rsquo;s expenses, the Sponsor will use cash proceeds received in connection with Cash Creation
Orders to purchase LTC and deposit it in the Vault Accounts with the Custodians. LTC held in the Vault Accounts is the property of the
Trust and is only transferred outside the Vault Accounts or sold in connection with creation and redemption transactions or to pay the
Trust&rsquo;s expenses and liabilities. The Trust&rsquo;s LTC will not leased, loaned or used as collateral for any loan, margin, rehypothecation
or similar activities. Expenses related to the acquisition of LTC in connection with a creation order and transfer of acquired LTC to
the Vault Accounts will not be the responsibility of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 101; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->96<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Determination of Required
Deposits </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The quantity of cash required
to create each Basket Deposit changes from day to day. On each day that the Exchange is open for regular trading, the Administrator adjusts
the quantity of cash constituting the Basket Deposit as appropriate to reflect the value of the Trust&rsquo;s LTC and cash less accrued
expenses. The computation is made by the Administrator as promptly as practicable after 4:00 p.m. ET or at a later time set forth in the
Authorized Participant Agreement or otherwise provided to all Authorized Participants on the date such order is placed in order for the
creation of Baskets to be effected based on the NAV of Shares as next determined on such date after receipt of the order in proper form.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent there is a difference
between the price actually paid by the Trust to acquire a Basket worth of LTC in the creation process compared to the cash value of the
Basket (i.e., if there is a difference between the amount paid by the Trust to purchase the requisite amount of LTC and the valuation
of LTC as part of the Trust&rsquo;s NAV calculation), that difference will also be charged to the creating Authorized Participant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Basket Cash Deposit is
an amount of cash that is in the same proportion to the total assets of the Trust, net of accrued expenses and other liabilities, on the
Purchase Order Date, as the number of Shares constituting a Basket is in proportion to the total number of Shares outstanding on the Purchase
Order Date, plus the amount of any Transaction Fees. The Authorized Participant is responsible for all expenses related to the acquisition
of LTC in connection with a creation order. For a discussion of how the Trust determines the value of LTC, see &ldquo;Calculation of NAV&rdquo;
above. The Basket Cash Deposit so determined is communicated via electronic mail message to all Authorized Participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Delivery of Required Deposits
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An Authorized Participant
who places a purchase order must follow the procedures outlined in the &ldquo;Creation Procedures&rdquo; section of this prospectus. Upon
receipt of the deposit amount by the Cash Custodian, as applicable, the Transfer Agent will direct DTC to credit the number of Shares
ordered to the Authorized Participant&rsquo;s DTC account on the following business day or such later time as may be agreed upon by the
Authorized Participant and the Sponsor, following the Purchase Order Date. In circumstances where purchase orders are due before 4:00
p.m. ET, Authorized Participants will not know the total Basket Deposit at the time they submit a purchase order for the Basket. The Trust&rsquo;s
NAV and the price of a Basket Deposit could rise or fall substantially between the time a purchase order is submitted and the time the
amount of the purchase price in respect thereof is determined, and the risk of such price movements will be borne solely by the Authorized
Participant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Rejection of Purchase Orders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor or its designee
has the absolute right, but does not have any obligation, to reject any purchase order or Basket Deposit if the Sponsor determines that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the purchase order or Basket Deposit is not in proper form as described in the Authorized Participant Agreement;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the acceptance of the purchase order or Basket Deposit would not be in the best interest of the Trust;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the acceptance of the purchase order or the Basket Deposit would have adverse tax consequences for the Trust or its Shareholders;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the acceptance of the Basket Deposit presents a security or regulatory risk to the Trust, the Sponsor, the Transfer Agent, the Prime Broker, the Custodians or the Cash Custodian;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the acceptance or receipt of the purchase order or Basket Deposit would, in the opinion of counsel to the Sponsor, be unlawful; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">circumstances outside the control of the Trust, the Sponsor, the Prime Broker, the Custodians or the Cash Custodian make it impractical or not feasible to process Baskets.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">None of the Sponsor, the Transfer
Agent, the Prime Broker, the Custodians or the Cash Custodian will be liable for the rejection of any purchase order or Basket Deposit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 102; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->97<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Redemption Procedures </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The procedures by which an
Authorized Participant can redeem one or more Baskets mirror the procedures for the creation of Baskets. On any business day, an Authorized
Participant may place an order with the Transfer Agent to redeem one or more Baskets. Redemption orders must be placed by the close of
Regular Trading Hours on the Exchange or an earlier time as determined and communicated by the Sponsor and its agent. A redemption order
will be effective on the date it is received by the Transfer Agent (&ldquo;Redemption Order Date&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the case of a redemption
order for cash (&ldquo;Cash Redemption Order&rdquo;), the redemption distribution from the Trust consists of a transfer to the Authorized
Participant of an amount of cash that is in the same proportion to the total assets of the Trust, net of accrued expenses and other liabilities,
on the Redemption Order Date, as the number of Shares to be redeemed under the purchase order is in proportion to the total number of
Shares outstanding on the Redemption Order Date. With respect to either a LTC Redemption Order or Cash Redemption Order, the redemption
distribution due from the Trust will be delivered once the Transfer Agent notifies the Cash Custodian, the Marketing Agent and the Sponsor
that the Authorized Participant has delivered the Shares represented by the Baskets to be redeemed to the Transfer Agent&rsquo;s DTC account.
If the Transfer Agent&rsquo;s DTC account has not been credited with all of the Shares of the Baskets to be redeemed, the redemption distribution
will be cancelled or delayed until such time as the Transfer Agent confirms receipt of all such Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">By placing a redemption order,
an Authorized Participant agrees to deliver the Baskets to be redeemed through DTC&rsquo;s book-entry system to the Trust by the end of
the following business day or such later time as may be agreed upon by the Authorized Participant and the Sponsor following the Redemption
Order Date. An Authorized Participant may not withdraw a redemption order without the prior consent of the Sponsor at its discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent there is a difference
between the price actually received by the Trust to sell a Basket worth of LTC in the redemption process compared to the cash value of
the Basket (i.e., if there is a difference between the amount received by the Trust to sell the requisite amount of LTC and the Trust&rsquo;s
NAV calculation), that difference will also be the responsibility of the redeeming Authorized Participant. Expenses related to the sale
of LTC in connection with a redemption order and transfer of LTC from the Vault Accounts will not be the responsibility of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Determination of Redemption
Distribution </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The redemption distribution
from the Trust will consist of a transfer to the redeeming Authorized Participant or its designee of an amount of cash that is determined
in the same manner as the determination of Basket Deposits discussed above. The Authorized Participant is responsible for all expenses
related to the sale of LTC in connection with a redemption order.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Delivery of Redemption
Distribution</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Once the Transfer Agent notifies
the Custodians, the Cash Custodian, the Marketing Agent and the Sponsor that the Shares have been received in the Transfer Agent&rsquo;s
DTC account, the Administrator instructs the Cash Custodian or Prime Broker to transfer the cash amount from the Cash Account to the designee
of the Authorized Participant. For a Cash Redemption Order, the redemption distribution due from the Trust will be sent by the Cash Custodian
to the Authorized Participant or its designee on the following business day or such later time as may be agreed upon by the Authorized
Participant and the Sponsor, following the Redemption Order Date if, by 4:00 p.m. ET, on such business day, the Transfer Agent&rsquo;s
DTC account has been credited with the Baskets to be redeemed. If the Transfer Agent&rsquo;s DTC account has not been credited with all
of the Baskets to be redeemed by such time, the redemption distribution will be cancelled or delayed until such time as the Transfer Agent
confirms receipt of all such Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Suspension of Creation
and Redemption Orders </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may, in its discretion,
suspend the right of creation or redemption, or postpone the creation or redemption settlement date, (1) for any period during which the
Exchange is closed other than customary weekend or holiday closings, or trading on the Exchange is suspended or restricted, (2) for any
period during which an emergency exists as a result of which delivery, disposal or evaluation of LTC is not reasonably practicable (for
example, as a result of a significant technical failure, power outage, or network error), or (3) for such other period as the Sponsor
determines to be necessary for the protection of the Trust or its Shareholders. For example, the Sponsor may determine that it is necessary
to suspend redemptions to allow for the orderly liquidation of the Trust&rsquo;s assets. None of the Sponsor, the person authorized to
take redemption orders in the manner provided in the Authorized Participant Agreement, or the Custodians will be liable to any person
or in any way for any loss or damages that may result from any such suspension or postponement. If the Sponsor has difficulty liquidating
the Trust&rsquo;s positions, e.g., because of a market disruption event or an unanticipated delay in the liquidation of a position in
an over-the-counter contract, it may be appropriate to suspend redemptions until such time as such circumstances are rectified. The Sponsor
will provide notice to Shareholders of any such suspensions in a prospectus supplement and/or through a current report on Form 8-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 103; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->98<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Rejection of Redemption
Orders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Redemption orders must be
made in whole Baskets. The Sponsor or its designee has the absolute right, but does not have any obligation, to reject any redemption
order if the Sponsor determines that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the redemption order is not in proper form as described in the Authorized Participant Agreement;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the acceptance of the redemption order would not be in the best interest of the Trust;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the acceptance of the redemption order would have adverse tax consequences to the Trust or its Shareholders;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the acceptance of the redemption order presents a security risk to the Trust, the Sponsor, the Transfer Agent or the Cash Custodian;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the acceptance of the redemption order would, in the opinion of counsel to the Sponsor, be unlawful; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">circumstances outside the control of the Trust, the Sponsor, or the Cash Custodian make it impractical or not feasible for the Shares to be delivered under the redemption order.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Creation and Redemption
Transaction Fees </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To compensate the Transfer
Agent for expenses incurred in connection with the creation and redemption of Baskets, an Authorized Participant is required to pay the
Transfer Agent Fee to the Transfer Agent to create or redeem Baskets, which does not vary in accordance with the number of Baskets in
such order. In addition, an Authorized Participant is required to pay the Execution Charges to the Trust or the Sponsor, as applicable,
to reimburse the operational processing and brokerage costs, transfer fees, network fees and stamp taxes. The Transaction Fees may be
reduced, increased or otherwise changed by the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Transfers of LTC into the
Trust&rsquo;s Trading Account are off-chain transactions and transfers from the Trust&rsquo;s Trading Account to the Trust&rsquo;s Vault
Accounts are &ldquo;on-chain&rdquo; transactions represented on the Litecoin Blockchain. Any costs related to transfers from the Trust&rsquo;s
Trading Account to the Trust&rsquo;s Vault Accounts are borne by the Sponsor (and not the Trust or its Shareholders).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;<B>Tax Responsibility</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Authorized Participants are
responsible for any transfer tax, sales or use tax, stamp tax, recording tax, value added tax or similar tax or governmental charge applicable
to the creation or redemption of Baskets, regardless of whether or not such tax or charge is imposed directly on the Authorized Participant,
and agree to indemnify the Sponsor and the Trust if they are required by law to pay any such tax, together with any applicable penalties,
additions to tax and interest thereon.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Secondary Market Transactions
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As noted, the Trust will create
and redeem Shares from time to time, but only in one or more Baskets. The creation and redemption of Shares are only made in exchange
for delivery to the Trust or the distribution by the Trust of the amount of cash determined as described above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As discussed above, Authorized
Participants are the only persons that may place orders to create and redeem Baskets. Authorized Participants must be registered broker-dealers
or other securities market participants, such as banks and other financial institutions that are not required to register as broker-dealers
to engage in securities transactions. An Authorized Participant is under no obligation to create or redeem Baskets, and an Authorized
Participant is under no obligation to offer to the public any Shares it does create.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Authorized Participants that
do offer to the public Shares from the Baskets they create will do so at per-Share offering prices that reflect, among other factors,
the value of the Trust&rsquo;s assets, supply of and demand for Shares and market conditions at the time of a transaction. Baskets are
generally redeemed when the market price per Share is at a discount to the NAV. Shares initially constituting the same Basket but offered
by Authorized Participants to the public at different times may have different offering prices. An order for one or more Baskets may be
placed by an Authorized Participant on behalf of multiple clients. Authorized Participants who make deposits with the Trust in exchange
for Baskets receive no fees, commissions or other forms of compensation or inducement of any kind from either the Trust or the Sponsor,
and no such person has any obligation or responsibility to the Sponsor to effect any sale or resale of Shares. Shares trade in the secondary
market on the Exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shares are expected to trade
in the secondary market on the Exchange. Shares may trade in the secondary market at prices that are lower or higher relative to their
NAV. The amount of the discount or premium in the trading price relative to the NAV may be influenced by various factors, including the
value of the Trust&rsquo;s assets, supply and demand for the Shares and market conditions at the time of a transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 104; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->99<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><A NAME="a_024"></A> EXPENSES</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Expenses to Be Paid by the Sponsor</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor has agreed to
assume the Sponsor-Paid Expenses, which are the following fees and expenses incurred by the Trust: the Marketing Fee, the Administrator
Fee, the Custodian Fee, the Cash Custodian Fee, the Prime Broker Fee, the Transfer Agent Fee, the Trustee&rsquo;s fee, applicable license
fees, including the licensing fees related to the Index License Agreement, fees and expenses related to public trading of the Shares on
Nasdaq (including marketing, legal and audit fees and expenses), ordinary legal expenses, audit fees, regulatory fees, including any fees
relating to the registration of the Shares with the SEC, printing and mailing costs and costs of maintaining the Trust&rsquo;s website.
There is no cap on the amount of Sponsor-paid Expenses. At the Sponsor&rsquo;s sole discretion, all or any portion of a Sponsor-paid Expense
may be redesignated as an Additional Trust Expense. The Sponsor will provide Shareholders with notice of any such redesignation in a prospectus
supplement and/or through a current report on Form 8-K or in the Trust&rsquo;s annual or quarterly reports.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Extraordinary and Other Expenses</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In certain extraordinary circumstances,
the Trust may pay expenses in addition to the Sponsor&rsquo;s Fee, including, but not limited to, any expenses of the Trust that are not
assumed by the Sponsor, taxes and governmental charges, expenses and costs of any extraordinary services performed by the Sponsor (or
any other Service Provider) on behalf of the Trust, indemnification expenses of the Custodians, Administrator or other agents, service
providers or counterparties of the Trust and extraordinary legal fees and expenses (collectively, &ldquo;Additional Trust Expenses&rdquo;).
If the Trust incurs any Additional Trust Expenses, the Sponsor or its delegate may cause the Trust (or its delegate) to convert LTC into
U.S. dollars at the price available through the Prime Broker&rsquo;s ________ Prime service (less applicable trading fees) through the
Trading Platform which the Sponsor is able to obtain using commercially reasonable efforts. The number of LTC represented by a Share will
decline each time the Trust pays Additional Trust Expenses by transferring or selling LTC. Although the Sponsor cannot definitively state
the frequency or magnitude of the Additional Trust Expenses, the Sponsor expects that they may occur infrequently, if at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Disposition of LTC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To pay the Sponsor&rsquo;s
Fee, the Custodians will, when directed by the Sponsor, (i) withdraw from the LTC Account the number of LTC equal to the accrued but unpaid
Sponsor&rsquo;s Fee and (ii) transfer such LTC to an account maintained by a Custodian for the Sponsor or to an account affiliated with
the Sponsor. The Trust is not responsible for paying any fees or costs associated with the transfer of LTC to the Sponsor or the sale
of LTC for costs not included in the Sponsor&rsquo;s Fee. In addition, if the Trust incurs any Additional Trust Expenses, the Sponsor
or its delegate may cause the Trust (or its delegate) to convert LTC into U.S. dollars at the price available through the Prime Broker&rsquo;s
________ Prime service (less applicable trading fees) through the Trading Platform which the Sponsor is able to obtain using commercially
reasonable efforts. The number of LTC represented by a Share will decline each time the Trust pays Additional Trust Expenses by transferring
or selling LTC. Shareholders do not have the option of choosing to pay their proportionate shares of Additional Trust Expenses in lieu
of having their shares of Additional Trust Expenses paid by the Trust&rsquo;s disposition of LTC. Assuming that the Trust is treated as
a grantor trust for U.S. federal income tax purposes, the transfer or sale of LTC to pay the Trust&rsquo;s expenses will be a taxable
event for Shareholders. See &ldquo;U.S. Federal Income Tax Consequences&mdash;Tax Consequences to U.S. Holders.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Transfers of LTC to and from
the Vault Accounts and the Trading Account, and transfers from the Trading Account to third-party digital asset brokers or dealers are
conducted &ldquo;on chain&rdquo; in transactions represented on the Litecoin Blockchain. On-chain transactions are subject to all of the
risks of the Litecoin Blockchain, including the risk that transactions will be made erroneously and are generally irreversible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In order to pay the Sponsor&rsquo;s
Fee, the Sponsor may transfer LTC from the Trading Account to the Sponsor&rsquo;s account at the Prime Broker. Such a transaction will
normally be conducted &ldquo;off chain&rdquo; through book entries in the Custodian&rsquo;s records. The Sponsor may also transfer LTC
directly from a Vault Account to an account affiliated with the Sponsor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Because the number of the
Trust&rsquo;s LTC will decrease as a consequence of the payment of the Sponsor&rsquo;s Fee in LTC or the sale of LTC to pay Additional
Trust Expenses (and the Trust will incur additional fees associated with converting LTC into U.S. dollars), the number of LTC represented
by a Share will decline at such time and the Trust&rsquo;s LTC Holdings may also decrease. Accordingly, the Shareholders will bear the
cost of the Sponsor&rsquo;s Fee and any Additional Trust Expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor will also cause
the sale of the Trust&rsquo;s LTC if the Sponsor determines that such sale is required by applicable law or regulation or in connection
with the termination and liquidation of the Trust. The Sponsor will not be liable or responsible in any way for depreciation or loss incurred
by reason of any sale of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 105; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->100<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_025"></A>BOOK-ENTRY-ONLY
SHARES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Securities Depository; Book-Entry-Only
System; Global Security</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In accordance with the relevant
provisions of the Trust Documents, the Trust&rsquo;s Shares have been and will only be issued in book-entry-only form, so individual certificates
will not be issued for the Shares but rather one or more global certificates will evidence all of the Shares outstanding at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">DTC will act as securities
depository for the Shares. DTC is a limited-purpose trust company organized under the laws of the State of New York, a member of the Federal
Reserve System, a &ldquo;clearing corporation&rdquo; within the meaning of the New York Uniform Commercial Code, and a &ldquo;clearing
agency&rdquo; registered pursuant to the provisions of section 17A of the Exchange Act. DTC was created to hold securities of DTC Participants
and to facilitate the clearance and settlement of transactions in such securities among the DTC Participants through electronic book-entry
changes. This eliminates the need for physical movement of securities certificates. DTC Participants include securities brokers and dealers,
banks, trust companies, clearing corporations, and certain other organizations, some of whom (and/or their representatives) own DTC. Access
to the DTC system is also available to others such as banks, brokers, dealers and trust companies that clear through or maintain a custodial
relationship with a DTC Participant, either directly or indirectly. DTC is expected to agree with and represent to the DTC Participants
that it will administer its book-entry system in accordance with its rules and by-laws and the requirements of law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Individual certificates will
not be issued for the Shares. Instead, one or more global certificates will be signed by the Transfer Agent on behalf of the Trust, registered
in the name of Cede &amp; Co., as nominee for DTC, and deposited with the Transfer Agent on behalf of DTC. The global certificates will
evidence all of the Shares outstanding at any time. The representations, undertakings and agreements made on the part of the Trust in
the global certificates are made and intended for the purpose of binding only the Trust and not the Transfer Agent or the Sponsor individually.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the settlement date of
any creation, transfer or redemption of Shares, DTC will credit or debit, on its book-entry registration and transfer system, the amount
of the Shares so created, transferred or redeemed to the accounts of the appropriate DTC Participants. The Transfer Agent and the Authorized
Participants will designate the accounts to be credited and charged in the case of creation or redemption of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Beneficial ownership of the
Shares will be limited to DTC Participants, Indirect Participants and persons holding interests through DTC Participants and Indirect
Participants. Owners of beneficial interests in the Shares will be shown on, and the transfer of ownership will be effected only through,
records maintained by DTC (with respect to DTC Participants), the records of DTC Participants (with respect to Indirect Participants),
and the records of Indirect Participants (with respect to Shareholders that are not DTC Participants or Indirect Participants). Shareholders
are expected to receive from or through the DTC Participant maintaining the account through which the Shareholder has purchased their
Shares a written confirmation relating to such purchase.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shareholders that are not
DTC Participants may transfer the Shares through DTC by instructing the DTC Participant or Indirect Participant through which the Shareholders
hold their Shares to transfer the Shares. Shareholders that are DTC Participants may transfer the Shares by instructing DTC in accordance
with the rules of DTC. Transfers of Shares will be made in accordance with standard securities industry practice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">DTC may decide to discontinue
providing its service with respect to Baskets and/or the Shares by giving notice to the Transfer Agent and the Sponsor. Under such circumstances,
the Sponsor will find a replacement for DTC to perform its functions at a comparable cost or, if a replacement is unavailable, the Sponsor
will act to terminate the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The rights of the Shareholders
generally must be exercised by DTC Participants acting on their behalf in accordance with the rules and procedures of DTC. Because the
Shares can only be held in book-entry form through DTC and DTC Participants, investors must rely on DTC, DTC Participants and any other
financial intermediary through which they hold the Shares to receive the benefits and exercise the rights described in this section. Investors
should consult with their broker or financial institution to find out about procedures and requirements for securities held in book-entry
form through DTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 106; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->101<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_026"></A>PROVISIONS
OF LAW</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to applicable law,
indemnification of the Sponsor is payable only if the Sponsor determined, in good faith, that the act, omission or conduct that gave rise
to the claim for indemnification was in the best interest of the Trust and the act, omission or activity that was the basis for such loss,
liability, damage, cost or expense was not the result of negligence or misconduct and such liability or loss was not the result of negligence
or misconduct by the Sponsor, and such indemnification or agreement to hold harmless is recoverable only out of the assets of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Provisions of Federal and State Securities
Laws</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This offering is made pursuant
to federal and state securities laws. The SEC and state securities agencies take the position that indemnification of the Sponsor that
arises out of an alleged violation of such laws is prohibited unless certain conditions are met.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">These conditions require that
no indemnification of the Sponsor or any underwriter for the Trust may be made in respect of any losses, liabilities or expenses arising
from or out of an alleged violation of federal or state securities laws unless: (i) there has been a successful adjudication on the merits
of each count involving alleged securities law violations as to the party seeking indemnification and the court approves the indemnification;
(ii) such claim has been dismissed with prejudice on the merits by a court of competent jurisdiction as to the party seeking indemnification;
or (iii) a court of competent jurisdiction approves a settlement of the claims against the party seeking indemnification and finds that
indemnification of the settlement and related costs should be made, provided that, before seeking such approval, the Sponsor or other
indemnitee must apprise the court of the position held by regulatory agencies against such indemnification. These agencies are the SEC
and the securities administrator of the state or states in which the plaintiffs claim they were offered or sold interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Provisions of the Securities Act</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to the Sponsor or directors, officers, or persons controlling the Trust,
the Trust has been informed that the SEC believes that such indemnification is against public policy as expressed in the Securities Act
and is therefore unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_027"></A>MANAGEMENT;
VOTING BY SHAREHOLDERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shareholders of the Trust
take no part in the management or control of, and have no voice in, the Trust&rsquo;s operations or business. Shareholders have very limited
voting rights as set forth in the Trust Agreement. However, certain actions, such as amendments or modifications that appoint a new sponsor
(upon the withdrawal, removal or the adjudication or admission of bankruptcy or insolvency of the Sponsor) require the consent of Shareholders
owning a majority (over 50%) of the outstanding Shares of the Trust (not including Shares held by the Sponsor or its Affiliates).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor generally has
the right to amend the Trust Agreement as it applies to the Trust, provided that the Shareholders have the right to vote only if expressly
required under Delaware or federal law or rules or regulations of Nasdaq, or if submitted to the Shareholders by the Sponsor at its sole
discretion. No amendment affecting the Trustee will be binding upon or effective against the Trustee unless consented to by the Trustee
in the form of an instruction letter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_028"></A>BOOKS AND RECORDS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust keeps its books
of record and account at the office of the Sponsor located at 437 Madison Avenue, 28<SUP>th</SUP> Floor, New York, NY 10022, or at the
offices of the Administrator, or such office, including that of an administrative agent, as it may subsequently designate upon notice.
The books and records are open to inspection by any person who establishes to the Trust&rsquo;s satisfaction that such person is a Shareholder
upon reasonable advance notice at all reasonable times during usual business hours of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust keeps a copy of
the Trust Agreement on file in the Sponsor&rsquo;s office, which will be available for inspection by any Shareholder at all times during
the Sponsor&rsquo;s usual business hours upon reasonable advance notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 107; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->102<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_029"></A>GOVERNING LAW;
CONSENT TO DELAWARE JURISDICTION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The rights of the Sponsor,
the Trust, DTC (as registered owner of the Trust&rsquo;s global certificate for Shares) and the Shareholders are governed by the laws
of the State of Delaware except for causes of action for violation of U.S. federal or state securities laws. Section 22 of the Securities
Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the
Securities Act or the rules and regulations thereunder. Investors cannot waive compliance with the federal securities laws and the rules
and regulations thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_030"></A>STATEMENTS,
FILINGS AND REPORTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Statements, Filings and Reports</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">After the end of each fiscal
year, the Sponsor will cause to be prepared an annual report containing audited financial statements prepared in accordance with U.S.
GAAP for the Trust. The annual report will be in such form and contain such information as will be required by applicable laws, rules
and regulations and may contain such additional information which the Sponsor determines shall be included. The annual report shall be
filed with the SEC and Nasdaq and shall be distributed to such persons and in such manner as shall be required by applicable laws, rules
and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is responsible
for the registration and qualification of the Shares under federal securities laws and any other securities and blue sky laws of the United
States or any other jurisdiction as the Sponsor may select. The Sponsor will also prepare, or cause to be prepared, and file any periodic
reports or updates required under the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The accounts of the Trust
will be audited, as required by law and as may be directed by the Sponsor, by independent registered public accountants designated by
the Sponsor. The accountants&rsquo; report will be furnished by the Sponsor to Shareholders upon request.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor will make elections,
file tax returns and prepare, disseminate and file tax reports as advised by its counsel or accountants and/or as required by any applicable
statute, rule or regulation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Fiscal Year</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The fiscal year of the Trust
is the period ending December 31 of each year. The Sponsor may select an alternate fiscal year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_031"></A>DESCRIPTION
OF THE TRUST AGREEMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is a description
of the material terms of the Trust Agreement. The Trust Agreement establishes the roles, rights and duties of the Sponsor and the Trustee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Sponsor</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Liability of the Sponsor and Indemnification</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor and its affiliates
(each a &ldquo;Covered Person&rdquo;) will not be liable to the Trust or any Shareholder for any action taken or for refraining from taking
any action in good faith, having determined that such course of conduct was in the best interests of the Trust. However, the preceding
liability exclusion will not protect the Sponsor against any liability resulting from its own fraud, willful misconduct, bad faith or
gross negligence in the performance of its duties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each Covered Person will be
indemnified by the Trust and held harmless against any loss, judgment, liability, expense incurred or amount paid in settlement of any
claim sustained by it in connection with the Covered Person&rsquo;s activities for the Trust, without fraud, gross negligence, bad faith,
willful misconduct or a material breach of the Trust Agreement on the part of such indemnified party arising out of or in connection with
the performance of its obligations under the Trust Agreement and under each other agreement entered into by the Sponsor in furtherance
of the administration of the Trust (including, without limiting the scope of the foregoing, any Authorized Participant Agreement) or any
actions taken in accordance with the provisions of the Trust Agreement. Such indemnity shall include payment from the Trust of the costs
and expenses incurred by such indemnified party in defending itself against any claim or liability in its capacity as Sponsor. Any amounts
payable to an indemnified party may be payable in advance or shall be secured by a lien on the Trust. The Sponsor may, in its discretion,
undertake any action that it may deem necessary or desirable in respect of the Trust Agreement and the interests of the Shareholders and,
in such event, the legal expenses and costs of any such actions shall be expenses and costs of the Trust and the Sponsor shall be entitled
to be reimbursed therefor by the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 108; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->103<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Fiduciary and Regulatory Duties of the Sponsor</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor is not effectively
subject to the duties and restrictions imposed on &ldquo;fiduciaries&rdquo; under both statutory and common law. Rather, the general fiduciary
duties that would apply to the Sponsor are defined and limited in scope by the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust Agreement provides
that in addition to any other requirements of applicable law, no Shareholder shall have the right, power or authority to bring or maintain
a derivative action, suit or other proceeding on behalf of the Trust unless two or more Shareholders who (i) are not affiliates of one
another and (ii) collectively hold at least 10% of the outstanding Shares join in the bringing or maintaining of such action, suit or
other proceeding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Beneficial owners may have
the right, subject to certain legal requirements, to bring class actions in federal court to enforce their rights under federal securities
laws and the rules and regulations promulgated thereunder by the SEC. Beneficial owners who have suffered losses in connection with the
purchase or sale of their beneficial interests may be able to recover such losses from the Sponsor where the losses result from a violation
by the Sponsor of the anti-fraud provisions of the federal securities laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Actions Taken to Protect the Trust</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may, in its own
discretion, prosecute, defend, settle or compromise actions or claims at law or in equity that it considers necessary or proper to protect
the Trust or the interests of the Shareholders. The expenses incurred by the Sponsor in connection therewith (including the fees and disbursements
of legal counsel) will be expenses of the Trust and are deemed to be Additional Trust Expenses. The Sponsor will be entitled to be reimbursed
for the Additional Trust Expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Successor Sponsors</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Sponsor is adjudged
bankrupt or insolvent, the Trustee may terminate and liquidate the Trust and distribute its remaining assets. Neither the Trustee nor
the Administrator has any obligation to appoint a successor sponsor or to assume the duties of the Sponsor and will have no liability
to any person because the Trust is or is not terminated as described in the preceding sentence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The Trustee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee is a fiduciary
under the Trust Agreement and must satisfy the requirements of Section 3807 of the Delaware Trust Statute. However, the fiduciary duties,
responsibilities and liabilities of the Trustee are limited by, and are only those specifically set forth in, the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Limitation on Trustee&rsquo;s Liability</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust Agreement,
the Sponsor has exclusive control of the management of all aspects of the activities of the Trust and the Trustee has only nominal duties
and liabilities to the Trust. The Trustee is appointed to serve as the trustee for the sole purpose of satisfying Section 3807(a) of the
DSTA, which requires that the Trust have at least one trustee with a principal place of business in the State of Delaware. The duties
of the Trustee are limited to (i) accepting legal process served on the Trust in the State of Delaware and (ii) the execution of any certificates
required to be filed with the Delaware Secretary of State which the Trustee is required to execute under the DSTA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent the Trustee
has duties (including fiduciary duties) and liabilities to the Trust or the Shareholders under the DSTA, such duties and liabilities will
be replaced by the duties and liabilities of the Trustee expressly set forth in the Trust Agreement. The Trustee will have no obligation
to supervise, nor will it be liable for, the acts or omissions of the Sponsor, Transfer Agent, Administrator, Custodians or any other
person. Neither the Trustee, either in its capacity as trustee or in its individual capacity, nor any director, officer or controlling
person of the Trustee is, or has any liability as, the issuer, director, officer or controlling person of the issuer of Shares. The Trustee&rsquo;s
liability is limited solely to the express obligations of the Trustee as set forth in the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Trust Agreement,
the Sponsor has the exclusive management, authority and control of all aspects of the activities of the Trust. The Trustee has no duty
or liability to supervise or monitor the performance of the Sponsor, nor does the Trustee have any liability for the acts or omissions
of the Sponsor. The existence of a trustee should not be taken as an indication of any additional level of management or supervision over
the Trust. The Trust Agreement provides that the management authority with respect to the Trust is vested directly in the Sponsor. The
Trust Agreement provides that the Trustee is not responsible or liable for the genuineness, enforceability, collectability, value, sufficiency,
location or existence of any of the LTC or other assets of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 109; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->104<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Possible Repayment of Distributions Received
by Shareholders; Indemnification by Shareholders</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares are limited liability
investments. Investors may not lose more than the amount that they invest plus any profits recognized on their investment. Although it
is unlikely, the Sponsor may, from time to time, make distributions to the Shareholders. However, Shareholders could be required, as a
matter of bankruptcy law, to return to the estate of the Trust any distribution they received at a time when the Trust was in fact insolvent
or in violation of the Trust Agreement. In addition, the Trust Agreement provides that Shareholders will indemnify the Trust for any harm
suffered by it as a result of Shareholders&rsquo; actions unrelated to the activities of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The foregoing repayment of
distributions and indemnity provisions (other than the provision for Shareholders indemnifying the Trust for taxes imposed upon it by
a state, local or foreign taxing authority, which is included only as a formality due to the fact that many states do not have statutory
trust statutes and therefore the tax status of the Trust in such states might, theoretically, be challenged) are commonplace in statutory
trusts and limited partnerships.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Indemnification of the Trustee</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee and any of the
officers, directors, employees and agents of the Trustee shall be indemnified by the Trust as primary obligor and held harmless against
any loss, damage, liability, claim, action, suit, cost, expense, disbursement (including the reasonable fees and expenses of counsel and
expenses incurred in connection with enforcement of the Trustee&rsquo;s indemnification rights under the Trust Agreement), tax or penalty
of any kind and nature whatsoever arising out of, imposed upon or asserted at any time against such indemnified person in connection with
the performance of its obligations under the Trust Agreement, the creation, operation or termination of the Trust or the transactions
contemplated therein; provided, however, that neither the Trust nor the Sponsor shall be required to indemnify any such indemnified person
for any such expenses that are a result of the willful misconduct, bad faith or gross negligence of such indemnified person. If the Trust
shall have insufficient assets or improperly refuses to pay such an indemnified person within 60 days of a request for payment owed under
the Trust Agreement, the Sponsor shall, as secondary obligor, compensate or reimburse the Trustee or indemnify, defend and hold harmless
such an indemnified person as if it were the primary obligor under the Trust Agreement. Any amount payable to such an indemnified person
under the Trust Agreement may be payable in advance and shall be secured by a lien on the Trust property. The obligations of the Sponsor
and the Trust to indemnify such indemnified persons under the Trust Agreement shall survive the termination of the Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Holding of Trust Property</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will hold and record
the ownership of the Trust&rsquo;s assets in a manner such that it will be owned for the benefit of the Shareholders for the purposes
of, and subject to and limited by the terms and conditions set forth in, the Trust Agreement. Other than issuance of the Shares, the Trust
will not create, incur or assume any indebtedness or borrow money from or loan money to any person. The Trustee may not commingle its
assets with those of any other person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee may employ agents,
attorneys, accountants, auditors and nominees and will not be answerable for the conduct or misconduct of any such custodians, agents,
attorneys or nominees if such custodians, agents, attorneys and nominees have been selected with reasonable care.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Resignation, Discharge or Removal of Trustee;
Successor Trustees</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trustee may resign as
Trustee by written notice of its election so to do, delivered to the Sponsor with at least 180 days&rsquo; notice. The Sponsor may remove
the Trustee in its discretion upon 60 days&rsquo; notice to the Trustee. If the Trustee resigns or is removed, the Sponsor, acting on
behalf of the Shareholders, shall appoint a successor trustee. The successor trustee will become fully vested with all of the rights,
powers, duties and obligations of the outgoing Trustee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Trustee resigns and
no successor trustee is appointed within 180 days after the Trustee notifies the Sponsor of its resignation, the Trustee will terminate
and liquidate the Trust and distribute its remaining assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 110; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->105<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Amendments to the Trust Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust Agreement can be
amended by the Sponsor in its sole discretion and without the Shareholders&rsquo; consent by making an amendment, a Trust Agreement supplemental
thereto, or an amended and restated trust agreement, provided that no such amendment or supplement may be made if it would adversely affect
the status of the Trust as a grantor trust for U.S. federal income tax purposes. Any such restatement, amendment and/or supplement shall
be effective on such date as designated by the Sponsor in its sole discretion. However, any amendment to the Trust Agreement that affects
the duties, liabilities, rights or protections of the Trustee shall require the Trustee&rsquo;s prior written consent, which it may grant
or withhold in its sole discretion. Any amendment to the Trust Agreement that materially adversely affects the interests of the Shareholders
shall not be effective any earlier than 20 days after receipt by the affected Shareholders of a notice provided by the Sponsor with respect
to any such amendment.</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Termination of the Trust</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust will dissolve if
any of the following events occur:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A U.S. federal or state regulator requires the Trust to shut down or forces the Trust to liquidate its LTC or seizes, impounds or otherwise restricts access to Trust assets;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any ongoing event exists that either prevents the Trust from converting or makes impractical the Trust&rsquo;s reasonable efforts to convert LTC to U.S. Dollars;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A certificate of dissolution or revocation of the Sponsor&rsquo;s charter is filed (and 90 days have passed after the date of notice to the Sponsor of revocation without a reinstatement of its charter) or upon the withdrawal, removal, adjudication or admission of bankruptcy or insolvency of the Sponsor, or an event of withdrawal unless (i) at the time there is at least one remaining Sponsor or (ii) within 90 days of such event of withdrawal Shareholders holding at least a majority of the Shares (not including Shares held by the Sponsor and its affiliates) agree in writing to continue the Trust and to select, effective as of the date of such event, one or more successor sponsors; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shareholders holding at least 50% of the outstanding Shares, not including affiliated parties of the Sponsor for purposes of calculation of such percentage, notify the Sponsor that they elect to dissolve the Trust, notice of which is sent to the Sponsor not less than 90 business days prior to the effective date of dissolution.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor may, in its sole
discretion, dissolve the Trust if any of the following events occur:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The SEC determines that the Trust is an investment company required to be registered under the Investment Company Act of 1940;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The CFTC determines that the Trust is a commodity pool under the CEA;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Trust is determined to be a &ldquo;money service business&rdquo; under the regulations promulgated by FinCEN under the authority of the U.S. Bank Secrecy Act and is required to comply with certain FinCEN regulations thereunder;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Trust is required to obtain a license or make a registration under any state law regulating money transmitters, money services businesses, providers of prepaid or stored value or similar entities, or virtual currency businesses;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Trust becomes insolvent or bankrupt;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Prime Broker, Cash Custodian, or the Custodians resign or are removed without replacement;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All of the Trust&rsquo;s LTC are sold;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Sponsor determines that the size of the Trust Estate in relation to the expenses of the Trust makes it unreasonable or imprudent to continue the Trust;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Sponsor receives notice from the IRS or from counsel for the Trust or the Sponsor that the Trust fails to qualify for treatment, or will not be treated, as a grantor trust under the Code; </FONT></TD></TR>
  </TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Trustee notifies the Sponsor of the Trustee&rsquo;s election to resign and the Sponsor does not appoint a successor trustee within 180 days; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Sponsor determines, in its sole discretion, that it is desirable or advisable for any reason to discontinue the affairs of the Trust.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The death, legal disability,
bankruptcy, insolvency, dissolution, or withdrawal of any Shareholder (as long as such Shareholder is not the sole Shareholder of the
Trust) shall not result in the termination of the Trust, and such Shareholder, its estate, custodian or personal representative shall
have no right to withdraw or value such Shareholder&rsquo;s Shares. Each Shareholder (and any assignee thereof) expressly agrees that
in the event of its death, it waives on behalf of itself and its estate, and it directs the legal representative of its estate and any
person interested therein to waive, the furnishing of any inventory, accounting or appraisal of the assets of the Trust and any right
to an audit or examination of the books of the Trust, except for such rights as are set forth in Article VIII of the Trust Agreement relating
to the books of account and reports of the Trust.</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the Trust is forced to
liquidate, the Trust will be liquidated under the Sponsor&rsquo;s direction. The Sponsor, on behalf of the Trust, will engage directly
with either accessible LTC Exchanges or over-the-counter LTC markets to liquidate the Trust&rsquo;s LTC as promptly as possible while
obtaining the best fair value possible. The proceeds therefrom will be applied and distributed in the following order of priority: (a)
to the expenses of liquidation and termination and to creditors, including Shareholders who are creditors, to the extent otherwise permitted
by law, in satisfaction of liabilities of the Trust other than liabilities for distributions to Shareholders and (b) to the holders of
Shares <I>pro rata</I> in accordance with the respective percentage of percentages of Shares that they hold.</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 111; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->106<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Governing Law; Consent to New York Jurisdiction</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust Agreement and the
rights of the Sponsor, Trustee, DTC and Shareholders under the Trust Agreement are governed by the laws of the State of Delaware. The
________ Custody Agreement and Authorized Participant Agreements are governed by the laws of the State of New York. The ________ Custody
Agreement is governed by the laws of the state of South Dakota. The ________ Custody Agreement is governed by the laws of England and
Wales. The Sponsor, the Trustee and DTC and, by accepting Shares, each DTC Participant and each Shareholder consent to the jurisdiction
of the courts of the State of New York and any federal courts located in the Borough of Manhattan in New York City.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_032"></A>U.S. FEDERAL
INCOME TAX CONSEQUENCES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Subject to the discussion
below in &ldquo;Tax Treatment of the Trust&rdquo; and &ldquo;Uncertainty Regarding the U.S. Federal Income Tax Treatment of LTC,&rdquo;
the following discussion constitutes the opinion of Chapman and Cutler LLP, special tax counsel to the Trust, regarding the material U.S.
federal income tax consequences of the ownership of Shares. This discussion does not describe all of the tax consequences that may be
relevant to a beneficial owner of Shares in light of the beneficial owner&rsquo;s particular circumstances, including tax consequences
applicable to beneficial owners subject to special rules, such as:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">financial institutions;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">dealers in securities;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">traders in securities or commodities that have elected to apply a mark-to-market method of tax accounting in respect thereof;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons holding Shares as part of a hedge, &ldquo;straddle,&rdquo; integrated transaction or similar transaction;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">persons holding Shares acquired by them as part of a Basket or redeeming Shares in exchange for the underlying LTC represented by the redeemed Shares;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S. Holders (as defined below) whose functional currency is not the U.S. dollar;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">entities or arrangements classified as partnerships for U.S. federal income tax purposes;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">real estate investment trusts;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">regulated investment companies; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">tax-exempt entities, including individual retirement accounts.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This discussion applies only
to Shares that are held as capital assets and does not address alternative minimum tax consequences or consequences of the Medicare contribution
tax on net investment income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If an entity or arrangement
that is classified as a partnership for U.S. federal income tax purposes holds Shares, the U.S. federal income tax treatment of a partner
will generally depend on the status of the partner and the activities of the partnership. Partnerships holding Shares and partners in
those partnerships are urged to consult their tax advisers about the particular U.S. federal income tax consequences of owning Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This discussion is based on
the Code, administrative pronouncements, judicial decisions and final, temporary and proposed Treasury regulations as of the date hereof,
changes to any of which subsequent to the date hereof may affect the tax consequences described herein. Prospective investors are urged
to consult their tax advisers about the application of the U.S. federal income tax laws to their particular situations, as well as any
tax consequences arising under the laws of any state, local or foreign taxing jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Tax Treatment of the Trust</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor intends to take
the position that the Trust will be treated as a grantor trust for U.S. federal income tax purposes. Assuming that the Trust is a grantor
trust, the Trust will not be subject to U.S. federal income tax. Rather, a <I>pro rata </I>portion of the Trust&rsquo;s income, gain,
losses and deductions will &ldquo;flow through&rdquo; to each beneficial owner of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 112; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->107<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If the IRS were successful
in asserting that the Trust is not properly classified as a grantor trust, the Trust might be classified as a partnership for U.S. federal
income tax purposes, although due to the uncertain treatment of LTC for U.S. federal income tax purposes (discussed below), there can
be no assurance in this regard. If the Trust were classified as a partnership for U.S. federal income tax purposes, the tax consequences
of owning Shares generally would not be materially different from the tax consequences described herein, although there might be certain
differences, including with respect to timing. In addition, tax information reports provided to Shareholders would be made in a different
form. If the Trust were not classified as either a grantor trust or a partnership for U.S. federal income tax purposes, it would be classified
as a corporation for such purposes. In that event, the Trust would be subject to entity-level U.S. federal income tax (currently at a
maximum rate of 21%) on its net taxable income and certain distributions made by the Trust to Shareholders would be taxable as dividends
to the extent of the Trust&rsquo;s current and accumulated earnings and profits (which, in the case of Non-U.S. Holders (as defined below),
generally would be subject to U.S. federal withholding tax at a 30% rate (or a lower rate provided by an applicable income tax treaty)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The remainder of this discussion
is based on the assumption that the Trust will be treated as a grantor trust for U.S. federal income tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Uncertainty Regarding the U.S. Federal Income
Tax Treatment of LTC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As discussed below, each beneficial
owner of Shares generally will be treated for U.S. federal income tax purposes as the owner of an undivided interest in the LTC held in
the Trust. Many significant aspects of the U.S. federal income tax treatment of LTC are uncertain, and the Sponsor does not intend to
request a ruling from the IRS on these issues. On March 25, 2014, the IRS released a notice (the &ldquo;Notice&rdquo;), which discusses
certain aspects of the treatment of virtual currencies, such as LTC, for U.S. federal income tax purposes. In the Notice, the IRS stated
that, for U.S. federal income tax purposes, (i) LTC are &ldquo;property&rdquo; that is not currency and (ii) LTC may be held as capital
assets. There can be no assurance, however, that the IRS will not alter its position with respect to LTC in the future or that a court
would uphold the treatment set forth in the Notice. In addition, legislation has been introduced that would, if enacted, cause LTC to
be treated as currency for U.S. federal income tax purposes. If LTC were properly treated as currency for U.S. federal income tax purposes,
gain recognized on the disposition of LTC would constitute ordinary income, and losses recognized on the disposition of LTC could be subject
to special reporting requirements applicable to &ldquo;reportable transactions.&rdquo; The remainder of this discussion assumes that LTC
are properly treated for U.S. federal income tax purposes as property that is not currency. Special tax counsel to the Trust expresses
no opinion regarding these aspects of the U.S. federal income tax treatment of LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Notice does not address
other significant aspects of the U.S. federal income tax treatment of LTC, including: (i) whether LTC are properly treated as &ldquo;commodities&rdquo;
for U.S. federal income tax purposes; (ii) whether LTC are properly treated as &ldquo;collectibles&rdquo; for U.S. federal income tax
purposes; (iii) the proper method of determining a holder&rsquo;s holding period and tax basis for LTC acquired at different times or
at varying prices; and (iv) whether and how a holder of LTC acquired at different times or at varying prices may designate, for U.S. federal
income tax purposes, which of the LTC are transferred in a subsequent sale, exchange or other disposition. In 2019, the IRS issued a FAQ
that addressed some but not all of these issues, but the IRS has not confirmed the answers provided in the FAQ in a manner upon which
taxpayers may rely.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prospective investors are
urged to consult their tax advisers regarding the substantial uncertainty regarding the tax consequences of an investment in LTC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Tax Consequences to U.S. Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As used herein, the term &ldquo;U.S.
Holder&rdquo; means a beneficial owner of a Share for U.S. federal income tax purposes that is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an individual who is a citizen or resident of the United States for U.S. federal income tax purposes;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a corporation, or other entity treated as a corporation for U.S. federal income tax purposes, created or organized in or under the laws of the United States or of any political subdivision thereof; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For U.S. federal income tax
purposes, each U.S. Holder will be treated as the owner of an undivided interest in the LTC held in the Trust and will be treated as directly
realizing its <I>pro rata </I>share of the Trust&rsquo;s income, gains, losses and deductions. When a U.S. Holder purchases Shares for
cash, the U.S. Holder&rsquo;s initial tax basis in its <I>pro rata </I>share of the LTC held in the Trust will be equal to the amount
paid for the Shares. <B>This discussion assumes that each U.S. Holder will acquire all of its Shares for cash on the same date and at
the same price per Share. U.S. Holders that acquire, or contemplate acquiring, multiple lots of Shares at different times or prices are
urged to consult their tax advisers regarding their tax bases and holding periods in their <I>pro rata </I>shares of the LTC held in the
Trust.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 113; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->108<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">When the Trust transfers LTC
to the Sponsor as payment of the Sponsor&rsquo;s Fee, or sells LTC to fund payment of any Additional Trust Expenses or a redemption, each
U.S. Holder will be treated as having sold its <I>pro rata </I>share of those LTC for their fair market value at that time (which, in
the case of LTC sold by the Trust, generally will be equal to the cash proceeds received by the Trust in respect thereof). As a result,
each U.S. Holder will recognize gain or loss in an amount equal to the difference between (i) the fair market value of the U.S. Holder&rsquo;s
<I>pro rata </I>share of the LTC that were transferred and (ii) the U.S. Holder&rsquo;s tax basis for its <I>pro rata </I>share of the
LTC that were transferred, subject to some specialized allocation rules for widely held fixed investment trusts (&ldquo;WHFITs&rdquo;).
For some purposes, the WHFIT rules generally allocate Trust items based on distributions. For some purposes, redemptions are treated as
distributions and may result in gain recognized by the Trust to generate proceeds for the redemption being disproportionately allocated
to the Shareholder making the redemption. The application of the WHFIT rules to a trust holding LTC is uncertain. Assuming that LTC are
not treated as currency for U.S. federal income tax purposes, any such gain or loss will generally be short-term capital gain or loss
if the U.S. Holder has held its Shares for one year or less and long-term capital gain or loss if the U.S. Holder has held its Shares
for more than one year. The deductibility of capital losses may be subject to significant limitations. The Shareholder&rsquo;s tax basis
and holding period for the Shareholder&rsquo;s <I>pro rata</I> share of the LTC held in the Trust will be based on the amount and cash
contributed and the time the Trust purchased the LTC with the cash. A U.S. Holder&rsquo;s tax basis in its <I>pro rata </I>share of any
LTC transferred by the Trust generally will be determined by multiplying the tax basis of the U.S. Holder&rsquo;s <I>pro rata </I>share
of all of the LTC held in the Trust immediately prior to the transfer by a fraction the numerator of which is the amount of LTC transferred
and the denominator of which is the total amount of LTC held in the Trust immediately prior to the transfer. Immediately after the transfer,
the U.S. Holder&rsquo;s tax basis in its <I>pro rata </I>share of the LTC remaining in the Trust will be equal to the tax basis in its
<I>pro rata </I>share of the LTC held in the Trust immediately prior to the transfer, less the portion of that tax basis allocable to
its <I>pro rata </I>share of the LTC transferred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">U.S. Holders may deduct their
respective <I>pro rata </I>shares of the expenses incurred by the Trust to the same extent as if the expenses were directly incurred by
the U.S. Holders. U.S. Holders&rsquo; <I>pro rata</I> shares of the expenses incurred by the Trust will be treated as &ldquo;miscellaneous
itemized deductions&rdquo; for U.S. federal income tax purposes. If a U.S. Holder is an individual, trust or estate, the U.S. Holder&rsquo;s
share of these expenses will be deductible for regular U.S. federal income tax purposes only to the extent that the U.S. Holder&rsquo;s
share of the expenses, when combined with other &ldquo;miscellaneous itemized deductions,&rdquo; exceeds 2% of the U.S. Holder&rsquo;s
adjusted gross income for the particular year, will not be deductible for U.S. federal alternative minimum tax purposes and will be subject
to certain other limitations on deductibility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On a sale or other disposition
of Shares, a U.S. Holder will be treated as having sold the LTC underlying such Shares. Accordingly, the Shareholder generally will recognize
gain or loss in an amount equal to the difference between (i) the amount realized on the sale of the Shares and (ii) the portion of the
U.S. Holder&rsquo;s tax basis in its <I>pro rata </I>share of the LTC held in the Trust that is attributable to the Shares disposed of.
The Shareholder&rsquo;s tax basis and holding period for the Shareholder&rsquo;s <I>pro rata</I> share of the LTC held in the Trust will
be based on the amount and cash contributed and the time the Trust purchased the LTC with the cash. Such tax basis generally will be determined
by multiplying the tax basis of the U.S. Holder&rsquo;s <I>pro rata </I>share of all of the LTC held by the Trust immediately prior to
such sale or other disposition by a fraction the numerator of which is the number of Shares disposed of and the denominator of which is
the total number of Shares held by such U.S. Holder immediately prior to such sale or other disposition. Assuming that LTC are not treated
as currency for U.S. federal income tax purposes, that gain or loss will generally be short-term capital gain or loss if the U.S. Holder
has held its Shares for one year or less and long-term capital gain or loss if the U.S. Holder has held its Shares for more than one year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">After any sale (or other disposition)
of fewer than all of a U.S. Holder&rsquo;s Shares, the U.S. Holder&rsquo;s tax basis in its <I>pro rata </I>share of the LTC held in the
Trust immediately after the sale (or other disposition) generally will equal the tax basis in its <I>pro rata </I>share of the total amount
of the LTC held in the Trust immediately prior to the sale, less the portion of that tax basis that is taken into account in determining
the amount of gain or loss recognized by the U.S. Holder upon the sale (or other disposition) (or, in the case of a redemption, which
is treated as the basis of the LTC received by the Shareholder in the redemption).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any brokerage or other transaction
fee incurred by a U.S. Holder in purchasing Shares will be added to the U.S. Holder&rsquo;s tax basis in the underlying assets of the
Trust. Similarly, any brokerage fee or other transaction fee incurred by a U.S. Holder in selling Shares will reduce the amount realized
by the U.S. Holder with respect to the sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Tax Consequences to Non-U.S. Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As used herein, the term &ldquo;non-U.S.
Holder&rdquo; means a beneficial owner of a Share for U.S. federal income tax purposes that is, for such purposes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a nonresident alien individual;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a foreign corporation; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a foreign estate or trust.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The term &ldquo;non-U.S. Holder&rdquo;
does not include (i) nonresident alien individuals present in the United States for 183 days or more in a taxable year, (ii) former U.S.
citizens and certain expatriated entities or (iii) persons whose Shares are effectively connected with the conduct of a trade or business
in the United States. Prospective investors described in the preceding sentence should consult their tax advisers regarding the U.S. federal
income tax consequences of owning Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust does not expect
to generate taxable income other than gain (if any) that will be recognized on the transfer of LTC in payment of the Sponsor&rsquo;s Fee
and the sale of LTC in connection with the payment of any Additional Trust Expenses. A non-U.S. Holder generally will not be subject to
U.S. federal income or withholding tax with respect to any such gain or with respect to any gain the non-U.S. Holder recognizes upon a
sale of Shares. However, if the income from the trust is effectively connected to a U.S. trade or business or, in the case of an individual,
the individual is in the United States for more than 180 days, the gains may be subject to U.S. tax.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 114; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->109<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>U.S. Information Reporting and Backup Withholding</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust or the appropriate
broker will file certain information returns with the IRS and provide holders of Shares with information regarding their shares of the
Trust&rsquo;s annual income (if any) and expenses in accordance with applicable Treasury regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A U.S. Holder may be subject
to backup withholding in certain circumstances if it fails to provide its taxpayer identification number or to comply with certain certification
procedures. In order to avoid the information reporting and backup withholding requirements, a non-U.S. Holder may have to comply with
certification procedures to establish that it is not a U.S. person. The amount of any backup withholding will be allowed as a credit against
the holder&rsquo;s U.S. federal income tax liability and may entitle the holder to a refund, provided that the required information is
furnished to the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_033"></A>ERISA AND RELATED
CONSIDERATIONS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Employee Retirement Income
Security Act of 1974, as amended (&ldquo;ERISA&rdquo;), and/or Code section 4975 impose certain requirements on employee benefit plans
and certain other plans and arrangements, including individual retirement accounts and annuities, Keogh plans, and certain collective
investment funds or insurance company general or separate accounts in which such plans or arrangements are invested, that are subject
to ERISA and/or the Code (collectively, &ldquo;Plans&rdquo;), and on persons who are fiduciaries with respect to the investment of assets
treated as &ldquo;plan assets&rdquo; of a Plan. Government plans and some church plans are not subject to the fiduciary responsibility
provisions of ERISA or the provisions of section 4975 of the Code but may be subject to substantially similar rules under state or other
federal law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In contemplating an investment
of a portion of Plan assets in Shares, the Plan fiduciary responsible for making such investment should carefully consider, taking into
account the facts and circumstances of the Plan, the &ldquo;Risk Factors&rdquo; discussed above and whether such investment is consistent
with its fiduciary responsibilities, including, but not limited to (1) whether the fiduciary has the authority to make the investment
under the appropriate governing plan instrument, (2) whether the investment would constitute a direct or indirect non-exempt prohibited
transaction with a party in interest, (3) the Plan&rsquo;s funding objectives, and (4) whether under the general fiduciary standards of
investment prudence and diversification such investment is appropriate for the Plan, taking into account the overall investment policy
of the Plan, the composition of the Plan&rsquo;s investment portfolio and the Plan&rsquo;s need for sufficient liquidity to pay benefits
when due.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">It is anticipated that the
Shares will constitute &ldquo;publicly-held offered securities&rdquo; as defined in the Department of Labor Regulations &sect; 2510.3-101(b)(2).
Accordingly, Shares purchased by a Plan, and not the Plan&rsquo;s interest in the underlying LTC held in the Trust represented by the
Shares, should be treated as assets of the Plan, for purposes of applying the &ldquo;fiduciary responsibility&rdquo; and &ldquo;prohibited
transaction&rdquo; rules of ERISA and the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Investment by Certain Retirement Plans</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Individual retirement accounts
(IRAs) and participant-directed accounts under tax-qualified retirement plans are limited in the types of investments they may make under
the Code. Potential purchasers of Shares that are IRAs or participant-directed accounts under a Code section 401(a) plan should consult
with their own tax advisers as to the consequences of a purchase of Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_034"></A>SEED CAPITAL
INVESTOR</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">[On ____, 202_, ____ (the
&ldquo;Seed Capital Investor&rdquo;), an&nbsp;affiliate of the Sponsor, purchased ____ (__) Share at a per-Share price of $___ (the &ldquo;Seed
Share&rdquo;). Delivery of the Seed Share was made on ____, 202_. Total proceeds to the Trust from the sale of the Seed Share were $___.&nbsp;On
____, 202_, the Seed Share was redeemed for cash and the Seed Capital Investor purchased ____ Shares at a per-Share price of $____ (the
&ldquo;Seed Baskets&rdquo;).&nbsp;Total proceeds to the Trust from the sale of the Seed Baskets were $____. On ____, 202_, the Trust purchased
____ LTC with the proceeds of the Seed Baskets. As of the date of the Prospectus, these ____Shares represent all of the outstanding Shares.&nbsp;The
Seed Capital Investor will act as a statutory underwriter in connection with the Seed Baskets. See &ldquo;Plan of Distribution&rdquo;
for additional information. The Seed Capital Investor may offer all of the Shares comprising the Seed Share and the Seed Baskets to the
public pursuant to this Prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Seed Capital Investor
will not receive from the Trust, the Sponsor or any of their affiliates any fee or other compensation in connection with the sale of the
Seed Baskets. The Seed Capital Investor will be acting as a statutory underwriter with respect to the Seed Baskets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Seed Capital Investor
will not act as an Authorized Participant with respect to the Seed Baskets, and its activities with respect to the Seed Baskets will be
distinct from those of an Authorized Participant. Unlike most Authorized Participants, the Seed Capital Investor is not in the business
of purchasing and selling securities for its own account or the accounts of others. The Seed Capital Investor will not act as an Authorized
Participant to purchase (or redeem) Baskets in the future.]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 115; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->110<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_035"></A>PLAN OF DISTRIBUTION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to, and independent
of the initial purchase by the Seed Capital Investor (described above), the Trust issues Shares in Baskets only to Authorized Participants
in exchange for deposits of cash on a continuous basis. Authorized Participants will not directly or indirectly purchase, hold, deliver,
or receive LTC as part of the creation or redemption process or otherwise direct the Trust or a third party with respect to purchasing,
holding, delivering, or receiving LTC as part of the creation or redemption process. The Trust does not issue fractions of a Basket. Because
new Shares can be created and issued on an ongoing basis, at any point during the life of the Trust, a &ldquo;distribution,&rdquo; as
such term is used in the Securities Act, will be occurring. The Seed Capital Investor will be deemed a statutory underwriter with respect
to the Seed Baskets. Authorized Participants, other broker-dealers, and other persons are cautioned that some of their activities will
result in their being deemed participants in a distribution in a manner that would render them statutory underwriters and subject them
to the prospectus delivery and liability provisions of the Securities Act. For example, an Authorized Participant, other broker-dealer
firm or its client will be deemed a statutory underwriter if it purchases a Basket from the Trust, breaks the Basket down into its constituent
Shares and sells the Shares directly to its customers, or if it chooses to couple the creation of a new Basket with an active selling
effort involving solicitation of secondary-market demand for the Shares. A determination of whether a particular market participant is
an underwriter must take into account all the facts and circumstances pertaining to the activities of the broker-dealer or its client
in the particular case, and the examples mentioned above should not be considered a complete description of all the activities that could
lead to designation as an underwriter and subject them to the prospectus delivery and liability provisions of the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Investors that purchase shares
through a brokerage account (whether commission-based or fee-based) may pay commissions or fees charged by the brokerage account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Dealers that are not &ldquo;underwriters&rdquo;
but are participating in a distribution (as contrasted to ordinary secondary trading transactions), and thus dealing with Shares that
are part of an &ldquo;unsold allotment&rdquo; within the meaning of Section 4(3)(C) of the Securities Act, would be unable to take advantage
of the prospectus delivery exemption provided by Section 4(3) of the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor intends to qualify
the Shares in states selected by the Sponsor and that sales be made through broker-dealers who are members of FINRA. Investors intending
to create or redeem Baskets through Authorized Participants in transactions not involving a broker-dealer registered in such investor&rsquo;s
state of domicile or residence should consult their legal adviser regarding applicable broker-dealer or securities regulatory requirements
under the state securities laws prior to such creation or redemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The offering of Baskets is
being made in compliance with Conduct Rule 2310 of FINRA. Authorized Participants will not receive from the Trust or the Sponsor any compensation
in connection with an offering or reoffering of the Shares. Accordingly, there is, and will be, no payment of underwriting compensation
in connection with any such offering of Shares in excess of 10% of the gross proceeds of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to a Marketing Agent
Agreement (the &ldquo;Marketing Agent Agreement&rdquo;) entered into between the Sponsor and Paralel Distributors LLC (the &ldquo;Marketing
Agent&rdquo;), the Marketing Agent will be paid an annual fee by the Sponsor. In addition, the Sponsor will pay certain out-of-pocket
fees and expenses of the Marketing Agent incurred in connection with its assistance in the marketing of the Trust and its Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the Marketing Agent
Agreement, the Marketing Agent will provide the following services to the Sponsor:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">at the request of the Trust, the Marketing Agent shall assist the Trust with facilitating Authorized Participant Agreements between and among Authorized Participants, the Trust, and the Transfer Agent, for the creation and redemption of Baskets of the Trust;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintain copies of confirmations of Basket creation and redemption order acceptances and produce such copies upon reasonable request from the Trust or Sponsor;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">make available copies of the prospectus to Authorized Participants who have purchased Baskets in accordance with the Authorized Participant Agreements;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintain telephonic, electronic mail and/or access to direct computer communications links with the Transfer Agent;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">review and approve, prior to use, all Trust marketing materials;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ensure that all direct requests by Authorized Participants for prospectuses are fulfilled;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 116; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->111<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">work with the Transfer Agent to review and approve orders placed by Authorized Participants and transmitted to the Transfer Agent; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">register and oversee supervisory activities of a certain number of FINRA-licensed registered representatives.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Marketing Agent will not
be liable for, and the Trust shall indemnify, defend and hold the Marketing Agent, its affiliates and each of their respective members,
managers, directors, officers, employees, representatives and any person who controls or previously controlled the Marketing Agent within
the meaning of Section 15 of the Securities Act (collectively, the &ldquo;Marketing Agent Indemnitees&rdquo;), free and harmless from
and against, any and all losses, claims, demands, liabilities, damages and expenses (including the costs of investigating or defending
any alleged losses, claims, demands, liabilities, damages or expenses and any reasonable counsel fees incurred in connection therewith)
that any Marketing Agent Indemnitee may incur arising out of or relating to (i) the Marketing Agent&rsquo;s provision of services under
the Marketing Agent Agreement; (ii) the Trust&rsquo;s breach of any of its obligations, representations, warranties or covenants contained
in the Marketing Agent Agreement; (iii) the Trust&rsquo;s failure to comply in all material respects with any applicable laws, rules or
regulations; (iv) any claim that the prospectus, registration statement, marketing literature and advertising materials or other information
filed or made public by the Trust (as from time to time amended) includes or included an untrue statement of a material fact or omits
or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading;
provided, however, that the Trust&rsquo;s obligation to indemnify any of the Marketing Agent Indemnitees shall not be deemed to cover
any such losses, as determined by a court of competent jurisdiction in a final decision on the merits, arising out of any untrue statement
or alleged untrue statement or omission or alleged omission made in the prospectus or any such advertising materials or marketing literature
or other information filed or made public by the Trust in reliance upon and in conformity with information provided by the Marketing Agent
to the Trust, in writing, for use in such prospectus or any such advertising materials or marketing literature. In no event shall anything
contained herein be so construed as to protect the Marketing Agent against any liability to the Trust for which the Marketing Agent would
otherwise be subject by reason of willful misfeasance, bad faith, reckless disregard or gross negligence in the performance of its duties
under the Marketing Agent Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Unless sooner terminated as
provided herein, the Marketing Agent Agreement shall continue in effect for two years from its effective date. Thereafter, if not terminated,
the Marketing Agent Agreement shall continue automatically in effect for successive one-year periods. Notwithstanding the foregoing, the
Marketing Agent Agreement may be terminated by any party at any time upon written notice to the other parties if (a) the Trust is terminated,
(b) any other party becomes insolvent or bankrupt or files a voluntary petition, or is subject to an involuntary petition, in bankruptcy
or attempts to or makes an assignment for the benefit of its creditors or consents to the appointment of a trustee or receiver or (c)
any other party willfully and materially breaches its obligations under the Marketing Agent Agreement and such breach has not been cured
to the reasonable satisfaction of the non-breaching party prior to the expiration of sixty (60) days after written notice by the non-breaching
party to the breach party of such breach.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Shares are listed and
traded on Nasdaq under the symbol &ldquo;____.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt"><B>Selling Shareholders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 20pt">The Sponsor or its affiliates,
or a fund or unit investment trust for which the Sponsor or an affiliate of the Sponsor serves as sponsor or investment advisor, may purchase
Shares of the Trust through a broker-dealer or other investors, including in secondary market transactions, and because the Sponsor and
its affiliates may be deemed affiliates of the Trust, the Shares are being registered to permit the resale of these Shares by affiliates
of the Trust from time to time after any such purchase. The Trust will not receive any of the proceeds from the resale of such Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 20pt">Selling shareholders (each,
a &ldquo;Selling Shareholder&rdquo;), including the Seed Capital Investor, may sell Shares owned by them directly or through broker-dealers,
in accordance with applicable law, on any national securities exchange on which the Shares may be listed or quoted at the time of sale,
through trading systems, in the OTC market or in transactions other than on these exchanges or systems at fixed prices, at prevailing
market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected
through brokerage transactions, privately negotiated trades, block sales, entry into options or other derivatives transactions or through
any other means authorized by applicable law. Selling Shareholders may redeem Shares held in Basket size through an Authorized Participant.
See &ldquo;Conflicts of Interest.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt; text-align: justify; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt; text-align: justify; text-indent: 20pt"></P>

<!-- Field: Page; Sequence: 117; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->112<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt; text-align: justify; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_036"></A>LEGAL MATTERS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The validity of the Shares
will be passed upon for the Sponsor by Chapman and Cutler LLP. Chapman and Cutler LLP, as special tax counsel to the Trust, will also
render an opinion regarding the material U.S. federal income tax consequences of the ownership of Shares. Chapman and Cutler LLP will
render an opinion regarding the Trust&rsquo;s status under Delaware law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: center; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><A NAME="a_037"></A> EXPERTS</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The financial statement as
of ________, included in this Prospectus has been so included in reliance on the report of ________, an independent registered public
accounting firm, given on the authority of said firm as experts in auditing and accounting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_038"></A>SUMMARY OF
PROMOTIONAL AND SALES MATERIAL</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust expects to use the
following sales material it has prepared:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the Trust&rsquo;s website, https://coinshares.com/us/etf/____/</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The materials described above
are not a part of this prospectus or the registration statement of which this prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_039"></A>PRIVACY POLICY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust and the Sponsor
may collect or have access to certain nonpublic personal information about current and former Shareholders. Nonpublic personal information
may include information received from Shareholders, such as a Shareholder&rsquo;s name, social security number and address, as well as
information received from brokerage firms about Shareholder holdings and transactions in Shares of the Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust and the Sponsor
do not disclose nonpublic personal information except as required by law or as described in their Privacy Policy. In general, the Trust
and the Sponsor restrict access to the nonpublic personal information they collect about Shareholders to those of their and their affiliates&rsquo;
employees and service providers who need access to such information to provide products and services to Shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Trust and the Sponsor
maintain safeguards that comply with federal law to protect Shareholders&rsquo; nonpublic personal information. These safeguards are reasonably
designed to (1) ensure the security and confidentiality of Shareholders&rsquo; records and information, (2) protect against any anticipated
threats or hazards to the security or integrity of Shareholders&rsquo; records and information, and (3) protect against unauthorized access
to or use of Shareholders&rsquo; records or information that could result in substantial harm or inconvenience to any Shareholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Third-party service providers
with whom the Trust and the Sponsor share nonpublic personal information about Shareholders must agree to follow appropriate standards
of security and confidentiality, which include safeguarding such nonpublic personal information physically, electronically and procedurally.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A copy of the Sponsor&rsquo;s
current Privacy Policy, which is applicable to the Trust, is provided to Shareholders annually and is also available at https://coinshares.com/privacy-policy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><A NAME="a_040"></A>WHERE YOU CAN
FIND MORE INFORMATION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Sponsor has filed on behalf
of the Trust a registration statement on Form S-1 with the SEC under the Securities Act of 1933. This Prospectus does not contain all
of the information set forth in the registration statement (including the exhibits to the registration statement), parts of which have
been omitted in accordance with the rules and regulations of the SEC. For further information about the Trust or the Shares, please refer
to the registration statement, which is available online at www.sec.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Information about the Trust
and the Shares can also be obtained from the Trust&rsquo;s website, which is https://coinshares.com/us/etf/____/ The Trust&rsquo;s website
address is only provided here as a convenience to you and the information contained on or connected to the website is not part of this
Prospectus or the registration statement of which this Prospectus is part. The Trust is subject to the informational requirements of the
Securities Exchange Act of 1934 and will file certain reports and other information with the SEC under the Securities Exchange Act of
1934.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The reports and other information
are available online at www.sec.gov.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<!-- Field: Page; Sequence: 118; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->113<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_001.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>CoinShares Litecoin ETF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Shares of CoinShares Litecoin ETF</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>The date of this prospectus is [ &nbsp;&nbsp;&nbsp;&nbsp;], 202_</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 2pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 119 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="margin: 0pt"></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>PART II</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-indent: 79.5pt"><B>&nbsp;</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>INFORMATION NOT REQUIRED IN PROSPECTUS
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"><B>Item 13. <I>Other Expenses of Issuance
and Distribution.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 20pt">The Trust shall not
bear any expenses incurred in connection with the issuance and distribution of the securities being registered. These expenses shall be
paid by CoinShares Co., the sponsor of the Trust. Except for the Securities and Exchange Commission Registration Fee and Exchange Listing
Fee, all such expenses are estimated:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify; text-indent: 20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">SEC registration fee (actual)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Listing fee (actual) </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">____</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Auditor&rsquo;s fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">____ </FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Legal fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">____</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Printing expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">____</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Miscellaneous expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">____</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">____</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">An indeterminate number of the securities is being registered
as may from time to time be sold at indeterminate prices. In accordance with Rules 456(d) and 457(u), the Trust is deferring payment
of all of the additional registration fee and will pay the additional registration fee subsequently on an annual basis.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"><B>Item 14. <I>Indemnification of Directors
and Officers.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 20pt">The Trust Agreement
will provide that the Trust shall indemnify, defend and hold harmless the Trustee (including in its individual capacity) and any of the
officers, directors, employees and agents of the Trustee (the <B>&ldquo;Indemnified Persons&rdquo;</B>) from and against any and all losses,
damages, liabilities, claims, actions, suits, costs, expenses, disbursements (including the reasonable fees and expenses of counsel and
fees and expenses incurred in connection with enforcement of its indemnification rights under the Trust Agreement), taxes and penalties
of any kind and nature whatsoever (collectively, &ldquo;Expenses&rdquo;), to the extent that such Expenses arise out of or are imposed
upon or asserted at any time against such Indemnified Persons with respect to the performance of the Trust Agreement, the creation, operation
or termination of the Trust or the transactions contemplated thereby; <I>provided</I>, <I>however</I>, that the Trust shall not be required
to indemnify any Indemnified Person for any Expenses which are a result of the willful misconduct, bad faith or gross negligence of an
Indemnified Person. If the Trust shall have insufficient assets or improperly refuses to pay an Indemnified Person within sixty (60) days
of a request for payment owed hereunder, the Sponsor shall, as secondary obligor, compensate or reimburse the Trustee or indemnify, defend
and hold harmless an Indemnified Person as if it were the primary obligor under the Trust Agreement; <I>provided</I>, <I>however</I>,
that the Sponsor shall not be required to indemnify any Indemnified Person for any Expenses which are a result of the willful misconduct,
bad faith or gross negligence of an Indemnified Person. To the fullest extent permitted by law and by the requirement for treatment of
the Trust as a grantor trust for tax purposes, Expenses to be incurred by an Indemnified Person shall, from time to time, be advanced
by, or on behalf of, the Sponsor prior to the final disposition of any matter upon receipt by the Sponsor of an undertaking by, or on
behalf of, such Indemnified Person to repay such amount if it shall be determined that the Indemnified Person is not entitled to be indemnified
under this Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"><B>Item 15. <I>Recent Sales of Unregistered
Securities.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 20pt">On ____, 202_, ____ (the &ldquo;Seed
Capital Investor&rdquo;), an&nbsp;affiliate of the Sponsor, purchased ____ (__) Share at a per-Share price of $___ (the &ldquo;Seed Share&rdquo;).
Delivery of the Seed Share was made on ____, 202_. Total proceeds to the Trust from the sale of the Seed Share were $___.&nbsp;On ____,
202_, the Seed Share was redeemed for cash and the Seed Capital Investor purchased ____ Shares at a per-Share price of $____ (the &ldquo;Seed
Baskets&rdquo;).&nbsp;Total proceeds to the Trust from the sale of the Seed Baskets were $____. On ____, 202_, the Trust purchased ____
LTC with the proceeds of the Seed Baskets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify"><B></B></P>

<!-- Field: Page; Sequence: 120; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left"><B>Item 16. <I>Exhibits and Financial
Statement Schedules</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: 0.25in">(a) Exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><B></B>&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid"><B>Exhibit&nbsp;No.</B></TD>
    <TD><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid"><B>Exhibit Description</B></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.1*</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 90%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea022857501ex3-1_coinshares.htm">Trust Agreement</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.2*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea022857501ex3-2_coinshares.htm">Certificate of Trust</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.1**</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Opinion of Chapman and Cutler LLP as to legality</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.1**</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Opinion of Chapman and Cutler LLP as to tax matters</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.1**</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Initial Authorized Participant Agreement</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.2**</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Distribution Agreement</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.3**</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Custodial Services Agreement</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.4**</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Administration Agreement</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.5**</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transfer Agency Agreement</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.6**</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sponsor Agreement</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.7**</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash Custody Agreement (Custodian Agreement)</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.1**</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of Independent Registered Public Accounting Firm </FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.2**</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of Chapman and Cutler LLP (included in Exhibits 5.1 and 8.1)</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">107*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea022857501ex-fee_coinshares.htm">Filing Fee Tables</A></FONT></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">Filed herewith</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">**</TD><TD STYLE="text-align: justify">To be filed by amendment</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">(b) Financial Statement Schedules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.25pt; text-indent: -18.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 63.25pt; text-indent: -18.25pt">Not applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><B>Item 17. <I>Undertakings.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 23.25pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The undersigned registrant hereby
undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85pt; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in">(i)</TD><TD STYLE="text-align: justify">to include any prospectus required by section 10(a)(3) of the Securities Act of 1933; (ii) to reflect
in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than 20% change in the maximum aggregate offering price set forth in the &ldquo;Calculation of Registration
Fee&rdquo; table in the effective registration statement; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 85pt; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in">(ii)</TD><TD STYLE="text-align: justify">to include any material information with respect to the plan of distribution not previously disclosed
in the registration statement or any material change to such information in the registration statement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -20pt"></P>

<!-- Field: Page; Sequence: 121; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">That, for the purpose of determining any liability under
the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">(3)</TD><TD STYLE="text-align: justify">To remove from registration by means of a post-effective amendment any of the securities being registered
which remain unsold at the termination of the offering.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(4)</TD><TD STYLE="text-align: justify">That, for the purpose of determining liability under the
Securities Act of 1933 to any purchaser: </TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 103.5pt; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">(i)</TD><TD STYLE="text-align: justify">If the registrant is relying on Rule 430B:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 103.5pt; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in; text-align: left">(A)</TD><TD STYLE="text-align: justify">each prospectus filed by the registrant pursuant to Rule
424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included
in the registration statement; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 103.5pt; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.25in">(B)</TD><TD STYLE="text-align: justify">each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration
statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing
the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration
statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of
sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any
person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating
to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such
effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration
statement or made in any such document immediately prior to such effective date; or</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">(ii)</TD><TD STYLE="text-align: justify">If the registrant is subject to Rule 430C, each prospectus
filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying
on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration
statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement
or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into
the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of
sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part
of the registration statement or made in any such document immediately prior to such date of first use.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -20pt"></P>

<!-- Field: Page; Sequence: 122; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(5)</TD><TD STYLE="text-align: justify">That, for the purpose of determining liability of the registrant
under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The undersigned registrant undertakes
that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting
method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following
communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to
such purchaser:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in">(i)</TD><TD STYLE="text-align: justify">any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required
to be filed pursuant to Rule 424;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">(ii)</TD><TD STYLE="text-align: justify">any free writing prospectus relating to the offering prepared
by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">(iii)</TD><TD STYLE="text-align: justify">the portion of any other free writing prospectus relating
to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned
registrant; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -20pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">(iv)</TD><TD STYLE="text-align: justify">any other communication that is an offer in the offering
made by the undersigned registrant to the purchaser.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(6)</TD><TD STYLE="text-align: justify">Insofar as indemnification for liabilities arising under
the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person
of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled
by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of such issue.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 123; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">II-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify; text-indent: 30pt">Pursuant to the requirements
of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized in the City of New York, and the State of New York, on January 24, 2025.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify; text-indent: 30pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
  <TD>&nbsp;</TD>
  <TD COLSPAN="3">COINSHARES LITECOIN ETF</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
  <TD STYLE="width: 60%">&nbsp;</TD>
  <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
  <TD STYLE="width: 31%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
  <TD>&nbsp;</TD>
  <TD COLSPAN="3">CoinShares Co.,</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
  <TD>&nbsp;</TD>
  <TD COLSPAN="3">as Sponsor of the Trust</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
  <TD>&nbsp;</TD>
  <TD>By:</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid">/s/ Jean Marie Mognetti</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
    <TD>Name:</TD>
  <TD> Jean-Marie Mognetti</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
    <TD>Title:</TD>
  <TD> Chief Executive Officer</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify; text-indent: 30pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify; text-indent: 30pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify">Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities* and on the dates indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="border-bottom: black 1.5pt solid; width: 35%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Signature</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; width: 42%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; width: 21%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Date</B></FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center">/s/ Jean-Marie Mognetti</TD>
    <TD ROWSPAN="2" STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD ROWSPAN="2" STYLE="text-align: center; vertical-align: top">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Chief Executive Officer</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Principal Executive Officer)</P></TD>
    <TD ROWSPAN="2" STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD ROWSPAN="2" STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">January 24, 2025</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jean-Marie Mognetti</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center">/s/ Charles Butler</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Portfolio Manager</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Charles Butler&nbsp;</FONT></TD>
    <TD ROWSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD ROWSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Principal Financial Officer and <BR>
Principal Accounting Officer)</FONT></TD>
    <TD ROWSPAN="2" STYLE="text-align: center">&nbsp;</TD>
    <TD ROWSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">January 24, 2025</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">The registrant is a trust and the persons are signing in
their capacities as officers of CoinShares Co., the Sponsor of the registrant.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 6pt">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">II-5</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B></B></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

</BODY>
</HTML>
[{"type": "S-1", "sequence": "1", "filename": "ea0228575-s1_coinshares.htm", "description": "REGISTRATION STATEMENT", "secsgml_size_bytes": 1137744}]
{"company-data": {"conformed-name": "CoinShares Litecoin ETF", "cik": "0002048623", "irs-number": "000000000", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-284482", "film-number": "25554476"}, "business-address": {"street1": "437 MADISON AVENUE", "street2": "28TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10022", "phone": "646-308-1518"}, "mail-address": {"street1": "437 MADISON AVENUE", "street2": "28TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10022"}}
As filed with the Securities and Exchange Commission on January 24, 2025
Registration No. 333-________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
COINSHARES
LITECOIN ETF
(Exact Name of Registrant as Specified in Its
Charter)
Delaware
________
(State or Other Jurisdiction of
Incorporation or Organization)
c/o CoinShares Co.
Charles Butler
437 Madison Avenue, 28
th
Floor
New York, NY 10022
(646) 308-1518
(I.R.S. Employer
Identification Number)
(Address, Including Zip Code, and Telephone
Number, Including Area Code,
of Registrant's Principal Executive Offices and Agent for Service)
Copies to:
Morrison C. Warren, Esq.
Chapman and Cutler LLP
320 South Canal Street
Chicago, Illinois 60606
Approximate date of commencement of proposed
sale to the public
: As soon as practicable after this registration statement becomes effective.
If any of the securities being
registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check
the following box.  ☒
If this Form is filed to register
additional securities for an offering pursuant to Rule 462(b) under the Securities Act of 1933, check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering.  ☐
If this Form is a post-effective
amendment filed pursuant to Rule 462(c) under the Securities Act of 1933, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering.  ☐
If this Form is a post-effective
amendment filed pursuant to Rule 462(d) under the Securities Act of 1933, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering.  ☐
Indicate by check mark whether
the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging
growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting
company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
Smaller reporting company
☒
Emerging growth company
☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.
☐
The Registrant hereby
amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file
a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section
8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting
pursuant to said Section 8(a), may determine.
The information in this prospectus is not complete
and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission
is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any
state where the offer or sale is not permitted.
Subject to Completion
Preliminary Prospectus dated January 24, 2025
COINSHARES LITECOIN ETF
Common Shares of Beneficial Interest
The CoinShares Litecoin ETF
(the "Trust") is an exchange-traded fund that issues common shares of beneficial interest (the "Shares"), which
represent units of fractional undivided beneficial interest in and ownership of the Trust. The Trust's purpose is to hold Litecoin
("LTC"), a digital commodity based on the cryptographic protocols used by the decentralized, peer-to-peer computer network
(the "Litecoin Network"). The investment objective of the Trust is for the Shares to reflect the performance of the value
of LTC as represented by the Compass Crypto Reference Index Litecoin - 4pm NY Time (the "Index"), less the Trust's liabilities
and expenses. The Shares are designed to provide investors with a cost-effective and convenient way to invest in LTC. As of the date of
this prospectus (this "Prospectus"), CoinShares Co. is the sole sponsor of the Trust (the "Sponsor"), CSC Delaware
Trust Company is the trustee of the Trust (the "Trustee"), ________ is the transfer agent of the Trust (in such capacity,
the "Transfer Agent") and the administrator of the Trust (in such capacity, the "Administrator"), ________ is
the marketing agent of the Trust (the "Marketing Agent"), ________, ________ and ________, are the custodians of the Trust's
LTC (each a "Custodian" and collectively, the "Custodians"), ________, is the prime broker of the Trust (the "Prime
Broker"), and ________, is the cash custodian of the Trust (the "Cash Custodian").
This is an initial public
offering of the Shares. The Shares may be purchased from the Trust only in one or more blocks of 5,000 Shares (a block of 5,000 Shares
is called a "Basket"). The Trust issues Baskets to certain authorized participants (together, the "Authorized Participants"
and each, an "Authorized Participant") on an ongoing basis as described in "Plan of Distribution." Baskets are
offered continuously in exchange for cash. The Trust does not issue fractions of a Basket. The initial price per Share is $________ and
was selected as an appropriate and convenient price that would facilitate secondary market trading of Shares. The Trust intends to redeem
Shares in Baskets on an ongoing basis from the Authorized Participants. The Authorized Participants have acknowledged that some activities
on their part may result, depending on the circumstances, in their being deemed participants in a distribution in a manner which could,
under certain interpretations of applicable law, render them statutory underwriters and subject them to the prospectus delivery and liability
provisions of the U.S. Securities Act of 1933 (the "Securities Act").
The Trust has listed the Shares
on The Nasdaq Stock Market, LLC ("Nasdaq" or the "Exchange") under the symbol "________."
[On ____, 202_, ____ (the
"Seed Capital Investor"), an affiliate of the Sponsor, purchased ____ (__) Share at a per-Share price of $___ (the "Seed
Share"). Delivery of the Seed Share was made on ____, 202_. Total proceeds to the Trust from the sale of the Seed Share were $___. On
____, 202_, the Seed Share was redeemed for cash and the Seed Capital Investor purchased ____ Shares at a per-Share price of $____ (the
"Seed Baskets"). Total proceeds to the Trust from the sale of the Seed Baskets were $____. On ____, 202_, the Trust purchased
____ LTC with the proceeds of the Seed Baskets. As of the date of the Prospectus, these ____Shares represent all of the outstanding Shares. The
Seed Capital Investor will act as a statutory underwriter in connection with the Seed Baskets. See "Seed Capital Investor"
for additional information.]
The price of the Seed Share
and the Seed Baskets were each determined as described herein and such Shares could be sold at different prices if sold by the Seed Capital
Investor at different times.
Holders of beneficial interests
in the Shares ("Shareholders") who decide to buy or sell Shares of the Trust will place their trade orders through their brokers
and may incur customary brokerage commissions and charges. Prior to this offering, there has been no public market for the Shares. The
Shares are expected to be listed for trading, subject to notice of issuance, on Nasdaq. Investing in the Trust involves risks similar
to those involved with an investment directly in LTC and other significant risks. See "Risk Factors" beginning on page 10.
The offering of an indeterminate
amount of the Shares is registered with the U.S. Securities and Exchange Commission (the "SEC") in accordance with the Securities
Act. The offering is intended to be a continuous offering and is not expected to terminate until three years from the date of the original
offering unless extended as permitted by applicable rules under the Securities Act. The Trust is not a mutual fund registered under the
U.S. Investment Company Act of 1940, as amended (the "1940 Act") and is not subject to regulation under the 1940 Act. The
Trust is not a commodity pool for purposes of the U.S. Commodity Exchange Act of 1936, as amended (the "CEA"), and the Sponsor
is not subject to regulation by the U.S. Commodity Futures Trading Commission (the "CFTC") as a commodity pool operator or
a commodity trading adviser. The Shares are neither interests in nor obligations of the Sponsor or the Trustee.
AN INVESTMENT IN THE TRUST
INVOLVES SIGNIFICANT RISKS AND MAY NOT BE SUITABLE FOR SHAREHOLDERS THAT ARE NOT IN A POSITION TO ACCEPT MORE RISK THAN MAY BE INVOLVED
WITH OTHER EXCHANGE-TRADED PRODUCTS THAT DO NOT HOLD LTC OR INTERESTS RELATED TO LTC. THE SHARES ARE SPECULATIVE SECURITIES. THE PURCHASE
OF SHARES INVOLVES A HIGH DEGREE OF RISK AND YOU COULD LOSE YOUR ENTIRE INVESTMENT. YOU SHOULD CONSIDER ALL RISK FACTORS BEFORE INVESTING
IN THE TRUST. PLEASE REFER TO "RISK FACTORS" BEGINNING ON PAGE 10.
NEITHER THE SEC NOR ANY
STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THE SECURITIES OFFERED IN THIS PROSPECTUS, OR DETERMINED IF THIS PROSPECTUS
IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
THE TRUST IS AN "EMERGING
GROWTH COMPANY" AS THAT TERM IS USED IN THE U.S. JUMPSTART OUR BUSINESS STARTUPS ACT (THE "JOBS ACT") AND, AS SUCH,
MAY ELECT TO COMPLY WITH CERTAIN REDUCED REPORTING REQUIREMENTS.
The date of this prospectus is [      ], 202_
TABLE
OF CONTENTS
STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
ii
INDUSTRY AND MARKET DATA
ii
PROSPECTUS SUMMARY
1
THE OFFERING
7
RISK FACTORS
10
USE OF PROCEEDS
62
OVERVIEW OF THE LTC INDUSTRY AND MARKET
62
ACTIVITIES OF THE TRUST
68
USE OF Compass Crypto Reference Index Litecoin - 4pm NY Time
72
CALCULATION OF NAV
74
DESCRIPTION OF THE TRUST
77
THE SPONSOR
78
THE TRUSTEE
79
THE TRANSFER AGENT
80
THE ADMINISTRATOR
80
AUTHORIZED PARTICIPANTS
81
THE CUSTODIANS
81
THE PRIME BROKER AND THE TRADE CREDIT LENDER
83
THE CASH CUSTODIAN
88
CONFLICTS OF INTEREST
88
DESCRIPTION OF THE SHARES
89
CUSTODY OF THE TRUST'S LTC
91
DESCRIPTION OF CREATION AND REDEMPTION OF SHARES
95
EXPENSES
100
BOOK-ENTRY-ONLY SHARES
101
PROVISIONS OF LAW
102
MANAGEMENT; VOTING BY SHAREHOLDERS
102
BOOKS AND RECORDS
102
GOVERNING LAW; CONSENT TO DELAWARE JURISDICTION
103
STATEMENTS, FILINGS AND REPORTS
103
DESCRIPTION OF THE TRUST AGREEEMENT
103
U.S. FEDERAL INCOME TAX CONSEQUENCES
107
ERISA AND RELATED CONSIDERATIONS
110
SEED CAPITAL INVESTOR
110
PLAN OF DISTRIBUTION
111
LEGAL MATTERS
113
EXPERTS
11
3
SUMMARY OF PROMOTIONAL AND SALES MATERIAL
113
PRIVACY POLICY
113
WHERE YOU CAN FIND MORE INFORMATION; INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
105
Neither the Sponsor nor
the Trust has authorized anyone to provide you with information different from that contained in this Prospectus, any amendment or supplement
to this Prospectus or any free writing prospectus prepared by us or on our behalf. Neither the Sponsor nor the Trust takes any responsibility
for, or can provide any assurance as to the reliability of, any information other than the information in this Prospectus, any amendment
or supplement to this Prospectus or any free writing prospectus prepared by the Sponsor or the Trust, or on the Trust's behalf.
The Trust is offering to sell, and seeking offers to buy, the Shares only in jurisdictions where offers and sales are permitted. The information
in this Prospectus is accurate only as of the date of this Prospectus, regardless of the time of delivery of this Prospectus or any sale
of the Shares.
In this Prospectus, unless
otherwise stated or the context otherwise requires, "we," "our" and "us" refer to the Sponsor acting
on behalf of the Trust.
i
STATEMENT REGARDING
FORWARD-LOOKING STATEMENTS
This Prospectus contains "forward-looking
statements" with respect to the Trust's financial conditions, results of operations, plans, objectives, future performance
and business. 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
Prospectus that address activities, events or developments that will or may occur in the future, including such matters as changes in
market prices and conditions for the LTC and/or the Shares, the Trust's operations, the Sponsor's plans 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. These statements are based on 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 deemed appropriate in the
circumstances. You should specifically consider the numerous risks outlined under "Risk Factors." 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:
●
the special considerations discussed in this Prospectus;
●
general economic, market and business conditions;
●
the use of technology by us and our vendors, including the Custodians and the Prime Broker, in conducting our business, including disruptions in our computer systems and data centers and our transition to, and quality of, new technology platforms;
●
changes in applicable laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies;
●
the costs and effects of any litigation or regulatory investigations;
●
our ability to maintain a positive reputation; and
●
other global economic and political developments.
Consequently, all the forward-looking
statements made in this Prospectus are qualified by these cautionary statements, and there can be no assurance that the actual results
or developments the Sponsor anticipates will be realized or, even if substantially realized, that they will result in the expected consequences
to, or have the expected effects on, the Trust's operations or the value of the Shares. Should one or more of these risks discussed
in "Risk Factors" or other uncertainties materialize, or should any underlying assumptions prove incorrect, actual outcomes
may vary materially from those described in the forward-looking statements. Forward-looking statements are made based on the Sponsor's
beliefs, estimates and opinions on the date the statements are made and neither the Trust nor the Sponsor is under a duty or undertakes
an obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, other
than as required by applicable laws. Moreover, neither the Trust, the Sponsor, nor any other person assumes responsibility for the accuracy
and completeness of any of these forward-looking statements. Investors are therefore cautioned against placing undue reliance on forward-looking
statements.
Industry
and Market Data
Although we are responsible
for all disclosure contained in this prospectus, in some cases we have relied on certain market and industry data obtained from third-party
sources that we believe to be reliable. Market estimates are calculated by using independent industry publications in conjunction with
our assumptions regarding the LTC industry and market. While we are not aware of any misstatements regarding any market, industry or similar
data presented herein, such data involves risks and uncertainties and is subject to change based on various factors, including those discussed
under the headings "Statement Regarding Forward-Looking Statements" and "Risk Factors" in this prospectus.
ii
PROSPECTUS
SUMMARY
This is only a summary
of the Prospectus and, while it contains material information about the Trust and the Shares, it does not contain or summarize all of
the information about the Trust and the Shares contained in this Prospectus which is material and/or which may be important to you. You
should read this entire Prospectus, including the "Risk Factors" beginning on page 10. Any individual intending to invest
in any investment described in this Prospectus should consult his or her professional advisers and ensure that he or she fully understands
all the risks associated with making such an investment before making an investment decision about the Shares.
Trust Overview
The investment objective of
the Trust is for the Shares to reflect the performance of the value of LTC as represented by the Compass Crypto Reference Index Litecoin
- 4pm NY Time (the "Index"), less the Trust's liabilities and expenses. In seeking to achieve its investment objective,
the Trust will hold LTC and will value its Shares daily based on the value of LTC as reflected by the Index. The Index is calculated independently
by Compass Financial Technologies (the "Benchmark Administrator") based on an aggregation of executed trade flow of Selected
Exchanges (defined below). There can be no assurance that the Trust will achieve its investment objective. The Sponsor is authorized under
a trust agreement between the Sponsor and the Trustee (as amended, the "Trust Agreement") to substitute an alternative index,
reference rate, or other methodology for the purposes of valuing LTC in accordance with the Trust's valuation policies and/or for
the purposes of achieving the Trust's investment objective at its sole discretion and without Shareholder approval. The Shares are
designed to provide investors with a cost-effective and convenient way to invest in LTC
Because the value of the Shares
is tied to the value of LTC held by the Trust, it is important to first understand the investment attributes of, and the market for, LTC.
Investing in the Shares does not insulate the investor from certain risks, including price volatility. The price of LTC on the LTC market
has exhibited periods of extreme volatility, which could have a negative impact on the performance of the Trust. For example, between
May 2021 and June 2022, the price of LTC fell from a then-all-time high of $412.96 to $43.31. See "Risk Factors."
The Trust is passively managed
and does not pursue active management investment strategies, and the Sponsor does not actively manage the LTC held by the Trust. This
means that the Sponsor does not sell LTC at times when its price is high or acquire LTC at low prices in the expectation of future price
increases. It also means that the Sponsor does not make use of any hedging techniques that may be available to or utilized by professional
LTC investors to attempt to reduce the risks of losses resulting from price decreases.
Except as provided below under
the heading "The Prime Broker and the Trade Credit Lender," the Trust, the Sponsor and the Trust's service providers
will not loan or pledge the Trust's assets, nor will the Trust's assets serve as collateral for any loan or similar arrangement,
nor will the Trust utilize leverage or similar arrangements in seeking to meet its investment objective.
The Shareholders of the Trust
take no part in the management or control, and have no voice in, the Trust's operations or business. Except in limited circumstances,
Shareholders will have no voting rights under the Trust Agreement.
LTC is a digital commodity
based on an open-source protocol. LTC is not issued by any government, bank or central organization, and instead exist on an online, peer-to-peer
computer network that hosts a public transaction ledger where LTC transfers are recorded (the "Litecoin Blockchain"). The
Litecoin Blockchain is accessed through software, and software governs LTC creation, movement and ownership.
LTC has no physical existence
beyond the record of transactions on the Litecoin Blockchain. The Litecoin Blockchain is a public record of the creation, custody and
flow of funds of LTC, showing every transaction effected on the blockchain among users' online "digital wallets" where
their LTC are effectively stored. LTC may be sent or received through users' digital wallets by using public and private keys that
are part of the Litecoin Blockchain's cryptographic security mechanism.
The Shares represent units
of fractional undivided beneficial interest in and ownership of the Trust and are expected to be traded under the ticker symbol "________"
on The Nasdaq Stock Market, LLC ("Nasdaq" or the "Exchange"). The Trust issues Baskets to Authorized Participants
on an ongoing basis in exchange for cash, which is used to purchase LTC that is deposited for safekeeping with the Custodians (as defined
below). The Trust will distribute cash by redeeming Shares in Baskets on an ongoing basis from Authorized Participants. See "Description
of the Shares—Redemption of the Shares."
1
Compass Crypto Reference Index Litecoin - 4pm
NY Time
The Index, which was introduced
________, 202_, was designed to provide a daily, 4:00 p.m. ET reference rate of the U.S. dollar price of one LTC that may be used to develop
financial products. The Index uses the same methodology as the Compass Crypto Reference Index Litecoin ("LRR"). The only material
difference between the Index and the LRR is that the LRR measures the U.S. dollar price of one LTC as of 4:00 p.m. London time and the
Index measures the U.S. dollar price of one LTC as of 4:00 p.m. Eastern Time ("ET"). The administrator of the Index is Compass
Financial Technologies (the "Benchmark Administrator"). The Index and the LRR are representative of the LTC trading activity
on the Selected Exchanges, which include, as of the date of this Prospectus, ____, ____, ____, ____, ____ and ____. For more information
on the Index and the LRR, see
"Use Of The Compass Crypto Reference Index XRP - 4pm NY Time"
below.
The Trust uses the Index to
calculate its daily NAV and to calculate an updated intraday indicative value ("IIV"). The IIV is intended to provide additional
information not otherwise available to the public that may be useful to investors and market professionals in connection with the trading
of the Shares on the Exchange. It is calculated by using the prior day's holdings at close of business. The IIV will be disseminated
on a per-Share basis every 15 seconds during regular Exchange trading hours of 9:30 a.m. to 4:00 p.m. ET.
The Sponsor believes that
the use of the Index is reflective of a reasonable valuation of the average spot price of LTC and that resistance to manipulation is a
priority aim of its design methodology. The methodology: (i) takes an observation period and divides it in twelve (12) time-equally
sized partitions of trade records; (ii) then calculates the volume-weighted median of all trade prices within each partition; and
(iii) determines the value from the arithmetic mean of the volume-weighted medians, equally weighted. By employing the foregoing
steps, the Index thereby seeks to ensure that transactions in LTC conducted at outlying prices do not have an undue effect on the value
of a specific partition, large trades or clusters of trades transacted over a short period of time will not have an undue influence on
the index level, and the effect of large trades at prices that deviate from the prevailing price are mitigated from having an undue influence
on the benchmark level.
In addition, the Sponsor notes
that an oversight function is implemented by the Benchmark Administrator in seeking to ensure that the Index is administered through codified
policies for Index integrity.
Index data and the description
of the Index are based on information made publicly available by the Benchmark Administrator on its website at https://www.compass-ft.com.
None of the information on the Benchmark Administrator's website is incorporated by reference into this prospectus.
Custody of the Trust's Assets
________ (the "________Custodian"),
________ ("________") and ________ ("________" and collectively with ________ and ________, the "Custodians")
will custody of all of the Trust's LTC, other than that which may be maintained in a trading account (the "Trading Account")
with ________ (the "Prime Broker," which is an affiliate of the ________ Custodian), in accounts that are required to be segregated
from the assets held by the Custodians as principal and the assets of its other customers (the "Vault Accounts"). The Custodians
will keep all of the private keys associated with the Trust's LTC held by the Custodians in the Vault Accounts in "cold storage,"
which refers to a safeguarding method by which the private keys corresponding to the Trust's LTC are generated and stored in an
offline manner using computers or devices that are not connected to the Internet, which is intended to make them more resistant to hacking.
CoinShares International Limited, the parent of the Sponsor, holds a minority equity interest in ________, which is therefore an affiliate
of the Sponsor.
A portion of the Trust's
LTC holdings and cash holdings may be held with the Prime Broker in the Trading Account to pay the Sponsor's Fee and in connection
with the purchase and sale of LTC related to creations and redemptions of Baskets and Trust expenses not assumed by the Sponsor. Within
the Trust's Trading Account, the Prime Broker Agreement provides that the Trust does not have an identifiable claim to any particular
LTC (and cash). Instead, the Trading Account represents an entitlement to a
pro rata
share of the LTC (and cash) the Prime Broker
holds on behalf of customers who hold similar entitlements against the Prime Broker. In this way, the Trust's Trading Account represents
an omnibus claim on the Prime Broker's LTC (and cash) held on behalf of the Prime Broker's customers. The Prime Broker holds
the LTC associated with customer entitlements across a combination of omnibus cold wallets, omnibus "hot wallets" (meaning
wallets whose private keys are generated and stored online, in Internet-connected computers or devices) or in omnibus accounts in the
Prime Broker's name on a trading venue (including third-party venues and the Prime Broker's own execution venue) where the
Prime Broker executes orders to buy and sell LTC on behalf of its clients. Within such omnibus hot and cold wallets and accounts, the
Prime Broker has represented to the Sponsor that it keeps the majority of assets in cold wallets, to promote security, while the balance
of assets is kept in hot wallets to facilitate rapid withdrawals. However, the Sponsor has no control over, and for security reasons the
Prime Broker does not disclose to the Sponsor, the percentage of LTC that the Prime Broker holds for customers holding similar entitlements
as the Trust which are kept in omnibus cold wallets, as compared to omnibus hot wallets or omnibus accounts in the Prime Broker's
name on a trading venue. The Prime Broker has represented to the Sponsor that the percentage of assets maintained in cold versus hot storage
is determined by ongoing risk analysis and market dynamics, in which the Prime Broker attempts to balance anticipated liquidity needs
for its customers as a class against the anticipated greater security of cold storage.
2
Other than the LTC held with
the Prime Broker in the Trading Account, the Sponsor will allocate the Trust's LTC between Vault Accounts at the ________ Custodian,
________and ________. In determining the amount and percentage of the Trust's LTC to allocate to each Vault Account, the Sponsor
will consider (i) the concentration of the Trust's LTC at each Custodian, (ii) the Sponsor's assessment of the safety and
security policies and procedures of each Custodian, (iii) the insurance policies of each Custodian, (iv) the fees and expenses associated
with the storage of the Trust's LTC at each Custodian, (v) the fees and expenses associated with the transfer to or from the Vault
Account at each Custodian, and (vi) any other factor the Sponsor deems relevant in making the allocation determination. The Sponsor does
not intend to disclose the amount or percentage of the Trust's LTC held at the ________Custodian, ________or ________, and the Sponsor
may change the allocation between the Custodians at any time and without notice to Shareholders. The fees and expenses associated with
the transfer of LTC between the Vault Accounts at each Custodian will be borne by the Sponsor, not the Trust or the Shareholders. Any
transfer of ________ between the Vault Accounts at each Custodian will occur "on-chain" over the Litecoin Blockchain. On-chain
transactions are subject to all of the risks of the Litecoin Blockchain, including the risk that transactions will be made erroneously
and are generally irreversible.
Purchases and Sales of LTC
Because the Trust will conduct
creations and redemptions of Shares for cash, it will be responsible for purchasing and selling LTC in connection with those creation
and redemption orders. The Trust may also be required to sell LTC to pay certain extraordinary, non-recurring expenses that are not assumed
by the Sponsor.
The Sponsor, on behalf of
the Trust, is responsible for acquiring LTC from a LTC trading counterparty that has been approved by the Sponsor (each, an "LTC
Trading Counterparty"). ________ (the "Prime Broker") was the Trust's initial LTC Trading Counterparty. The LTC
Trading Counterparties with which the Sponsor will engage in LTC transactions are unaffiliated third parties and all transactions will
be done on an arm's-length basis.
Pursuant to the Trust's
creation and redemption processes, Authorized Participants and the Trust do not settle the cash for creation or redemption orders until
the day after the order is placed, while the Trust makes purchases and sales of LTC in connection with creations and redemption orders
on the day of the order. To facilitate this settlement of creation and redemption orders, the Trust may borrow LTC or cash as trade credit
("Trade Credit") from ________ (the "Trade Credit Lender"), an affiliate of ________, on a short-term basis pursuant
to the ________ (the "Trade Financing Agreement") to cover the short-term transactional needs of the Trust. Pursuant to the
Authorized Participant Agreement, the Trust does not bear the ultimate cost of the Trade Credits or the Trade Financing Agreement, as
those expenses are borne by the Authorized Participants during the order process. Due to the timing of creation and redemption procedures
of the Trust, the Sponsor anticipates that any agreements with subsequent LTC Trading Counterparties will require similar trade financing
arrangements to settle LTC and cash transactions on the day of order placement. The Sponsor, on behalf of the Trust, may engage additional
LTC Trading Counterparties at any time. The list of the current LTC Trading Counterparties will be included in the Trust's Annual
Reports on Form 10-K.
Summary of Risk Factors
An investment in the Trust
involves risks described in the section below entitled "Risk Factors" and elsewhere in this prospectus. Some of these risks
are summarized below.
Risks Associated with LTC and the Litecoin
Blockchain.
LTC is a relatively new technological
innovation with a limited history. There is no assurance that usage of the Litecoin Blockchain or LTC will continue to grow. A contraction
in the use or adoption of LTC may result in increased volatility or a reduction in the price of LTC, which could adversely impact the
value of the Shares. Sales of LTC that have been newly released from escrow may cause the price of LTC to decline, which could negatively
affect an investment in the Shares. LTC markets have a limited history, LTC trading prices have exhibited high levels of volatility, and
in some cases such volatility has been sudden and extreme. Because of such volatility, Shareholders could lose all or substantially all
of their investment in the Trust. Regulation of the use of LTC and the Litecoin Blockchain continues to evolve both in the United States
and in foreign jurisdictions, which may restrict the use of LTC or otherwise impact the demand for LTC. Disruptions at digital asset trading
platforms could adversely affect the availability of LTC and the ability of Authorized Participants to purchase or sell LTC and, therefore,
their ability to create and redeem Shares.
3
Spot markets on which LTC
trades are relatively new and largely unregulated or may not be complying with existing regulations and, therefore, may be more exposed
to fraud and security breaches than established, regulated exchanges for other financial assets or instruments, which could have a negative
impact on the performance of the Trust. Disruptions at LTC spot markets, futures markets and in the over-the-counter ("OTC")
markets could adversely affect the availability of LTC and the ability of Authorized Participants (as defined below) to purchase or sell
LTC or LTC derivatives (or provide cash in relation thereto) and therefore their ability to create and redeem Shares of the Trust. The
loss or destruction of certain "private keys," including by the Custodian, could prevent the Trust from accessing its LTC.
Loss of these private keys may be irreversible and could result in the loss of all or substantially all of an investment in the Trust.
Loss of private keys may also impede the Trust's ability to operate, including by limiting the Trust's ability to transfer
LTC in the face of a redemption request and forcing the Trust to consider liquidation.
Risks Associated with Investing in the Trust.
Shareholders may choose to
use the Trust as a means of investing indirectly in LTC. As noted, there are significant risks and hazards inherent in the LTC market
that may cause the price of LTC to fluctuate widely. Shareholders considering a purchase of Shares of the Trust should carefully consider
what percentage of their total assets should be exposed to the LTC market, and should fully understand, be willing to assume, and have
the financial resources necessary to withstand the risks involved in the Trust's investment strategy, and be in a position to bear
the potential loss of their entire investment in the Trust. Because the value of LTC, and thus the value of the Shares, may be extremely
volatile, Shareholders will need to monitor their investment frequently.
There is no assurance that
the Trust will generate a profit for investors. In addition, an actual or perceived breach of the Trust's accounts with the Custodians
could harm the Trust's operations, result in partial or total loss of the Trust's assets, damage the Trust's reputation
and negatively affect the market perception of the effectiveness of the Trust, all of which could in turn reduce demand for the Shares,
resulting in a reduction in the price of the Shares. The Trust may also cease operations, the occurrence of which could similarly result
in a reduction in the price of the Shares. Any investment made in the Trust may result in a total loss of the investment.
The Trust's return will
not match the performance of the Index because the Trust incurs operating expenses. Moreover, the net asset value ("NAV")
of the Trust may deviate from the market price of its Shares for a number of reasons, including price volatility, trading activity, normal
trading hours for the Trust, the calculation methodology of the NAV, and/or the closing of LTC trading platforms due to fraud, failure,
security breaches or otherwise.
The amount of LTC represented
by the Shares will continue to be reduced during the life of the Trust due to the transfer of the Trust's LTC to pay for the Sponsor's
Fee and other liabilities.
Trust Structure
The Trust is a Delaware statutory
trust, organized on December 10, 2024, that operates pursuant to the Trust Agreement. The Trust has entered into a brokerage and custody
agreement with the ________ (the "________Custody Agreement") and separate custodial services agreements with ________ (the
"________Custody Agreement") and ________ (the "________Custody Agreement", and collectively with the ________Custody
Agreement" and the "________Custody Agreement," the "Custody Agreements"), pursuant to which the Custodians
will custody all of the Trust's LTC, other than that which may be maintained in a trading account with the Prime Broker from time
to time. ________ is a separate entity but an affiliate of the ________Custodian and is also a broker of the Trust. Pursuant to the Custody
Agreements, the Custodians established accounts that hold the LTC deposited with the respective Custodian on behalf of the Trust.
The Trust's current
Sponsor is CoinShares Co., a Delaware corporation and a wholly owned subsidiary of CoinShares International Limited. Under the Delaware
General Corporation Law Act and the governing documents of the Sponsor, CoinShares International Limited, the sole shareholder of the
Sponsor, is not responsible for the debts, obligations and liabilities of the Sponsor solely by reason of being the sole shareholder of
the Sponsor.
4
The Sponsor arranged for the
creation of the Trust and the Sponsor arranges for the registration of the Shares for their public offering in the United States and their
listing on Nasdaq. The Sponsor is obligated to assume and pay the following fees and expenses of the Trust: the Trustee's fee payable
under the Trust Agreement, the Custodian Fee (as defined herein), the Cash Custodian Fee (as defined herein), the Transfer Agent Fee (as
defined herein), the Marketing Fee (as defined herein), applicable license fees, including the licensing fees related to the Index License
Agreement (as defined herein), the fees of the Prime Broker (as defined herein), the Administrator Fee (as defined herein), fees and expenses
related to trading of Shares on Nasdaq (including marketing, legal and audit fees and expenses), legal expenses, audit fees, regulatory
fees, including any fees relating to the registration of the Shares with the SEC, printing and mailing costs and costs of maintaining
the Trust's website. The Sponsor paid the costs of the Trust's organization.
The Sponsor and the Administrator
are generally responsible for the administration of the Trust under the provisions of the Trust Agreement. The responsibilities of the
Sponsor include (i) selecting and monitoring the Trust's Service Providers (as defined herein) and from time to time engaging
additional, successor or replacement Service Providers and (ii) upon dissolution of the Trust, distributing the Trust's remaining
LTC or the cash proceeds of the sale of the Trust's remaining LTC (determined at the sole discretion of the Sponsor) to the owners
of record of the Shares. The responsibilities of the Administrator include (i) preparing and providing periodic reports on behalf
of the Trust to investors, (ii) processing orders to create and redeem Baskets and coordinating the processing of such orders with
the Cash Custodian, the Transfer Agent and the Depository Trust Company ("DTC"), (iii) publishing the Trust's LTC
Holdings and LTC Holdings per Share (each as defined herein) each business day at 4:00 p.m. ET, or as soon thereafter as practicable and
(iv) instructing the Custodians or the Prime Broker to transfer the Trust's LTC, as needed to pay the Sponsor's Fee and
any Additional Trust Expenses (each as defined herein).
Although the Trust's
LTC are not stored in a physical sense, a record of the Trust's LTC are identifiable on the Litecoin Blockchain via digital addresses
established by the Custodians. These digital addresses are contained in a Trading Account and the Vault Accounts (each as defined herein)
which together constitute the "LTC Account." The LTC Account consists of multi-signature digital addresses, which require
several distinct "private keys" to authenticate access to and transfer of the Trust's LTC from the LTC Account. Notwithstanding
LTC payable to the Sponsor for its management fee or LTC deposited into or removed from the Trust in connection with sales and purchases
related to the creation or redemption of Baskets, respectively, the Sponsor endeavors to instruct the Custodians to maintain all of the
Trust's LTC within a Vault Account. The Custodians are responsible for the safekeeping of the Trust's private keys used to
access the LTC Account and facilitates the transfer of LTC in accordance with the Sponsor's instructions.
The general role, responsibilities
and regulation of the Sponsor, Trustee, Administrator and Custodians are further described in "The Sponsor," "The Trustee,"
"The Administrator" and "The Custodians," respectively. Detailed descriptions of certain specific rights and duties
of the Sponsor, Trustee, Administrator and Custodian are set forth in "Description of the Trust Documents—Description of the
Trust Agreement" and "—Description of the Custody Agreements," respectively. The Trust Agreement and Custody Agreements
are collectively referred to herein as "Trust Documents."
LTC History
The Litecoin Blockchain is
a recent technological innovation, and the LTC that are created, transferred, used and stored by entities and individuals have certain
features associated with several types of assets, most notably commodities and currencies. Many U.S. regulators, including the Financial
Crimes Enforcement Network of the U.S. Department of the Treasury ("FinCEN"), the CFTC, the U.S. Internal Revenue Service
("IRS"), and state regulators, including the New York Department of Financial Services ("NYDFS"), have made official
pronouncements or issued guidance or rules regarding the treatment of LTC and other digital currencies. However, other U.S. and state
agencies, such as the SEC, have not made official pronouncements or issued guidance or rules regarding the treatment of LTC. Similarly,
the treatment of LTC and other digital currencies is often uncertain or contradictory in other countries. The regulatory uncertainty surrounding
the treatment of LTC creates risks for the Trust and its Shares. See "Risk Factors—Risk Factors Related to the Regulation
of the Trust and the Shares."
5
Some of the notable features
of the Trust and its Shares include the holding of LTC in the Trust's own accounts, the experience of the Sponsor's management
team in the LTC industry and the use of the Custodians to protect the Trust's private keys. See "Activities of the Trust."
Emerging
Growth Company Status
The Trust is an "emerging
growth company" as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). For as long as the Trust
is an emerging growth company, unlike other public companies, it will not be required to, among other things:
●
provide an auditor's attestation report on management's assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002; or
●
comply with any new audit rules adopted by the PCAOB after April 5, 2012, unless the SEC determines otherwise.
The Trust will cease to be
an "emerging growth company" upon the earliest of (i) its having $1.235 billion or more in annual revenues, (ii) at least
$700 million in market value of Shares being held by non-affiliates, (iii) its issuing more than $1.0 billion of non-convertible debt
over a three-year period or (iv) the last day of the fiscal year following the fifth anniversary of its initial public offering.
In addition, Section 107 of
the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B)
of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the
adoption of certain accounting standards until those standards would otherwise apply to private companies; however, the Trust is choosing
to "opt out" of such extended transition period and, as a result, the Trust will comply with new or revised accounting standards
on the relevant dates on which adoption of such standards is required for non-emerging growth companies. Section 107 of the JOBS Act provides
that the Trust's decision to opt out of the extended transition period for complying with new or revised accounting standards is
irrevocable.
Principal
Offices
The Trustee's principal
office is located at 251 Little Falls Drive, Wilmington, DE 19808. The Sponsor's principal office is located at 437 Madison Avenue,
28
th
Floor, New York, NY 10022 and its telephone number is 646-308-1518.
6
THE OFFERING
Shares Offered by the Trust
Shares representing units of fractional undivided beneficial interest in, and ownership of, the Trust.
Use of Proceeds
Proceeds received by the Trust from the issuance and sale of Baskets will consist of cash. The Trust is obligated to convert any cash contributed to LTC as soon as practicable, except to the extent necessary to pay expenses or facilitate redemptions. Deposits of cash are held by the Cash Custodian or the Prime Broker on behalf of the Trust until (i) transferred in connection with the purchase of LTC that is subsequently deposited with the Custodians, (ii) delivered in connection with redemptions of Baskets or (iii) transferred to pay fees due to the Sponsor and Trust expenses and liabilities not assumed by the Sponsor.
Nasdaq Exchange Symbol
_______
LTC Index Price
For purposes of determining the value of the Trust's LTC, the Trust uses the Index to calculate a per-LTC value in U.S. dollars (the "LTC Index Price"). The LTC Index Price is published between 4:00 p.m. and 4:30 p.m. ET on each trading day.
For more information on the Compass Crypto Reference Index Litecoin - 4pm NY Time, see "Use of the Compass Crypto Reference Index Litecoin - 4pm NY Time and "Calculation of NAV" below.
CUSIP
________
Creation and Redemption
The Trust issues Shares on an ongoing basis, but only in one or more whole Baskets. The Trust intends to redeem Shares in Baskets on an ongoing basis from Authorized Participants. See "Description of the Shares—Redemption of the Shares."
A Basket equals 5,000 Shares. As of ________, 2025, each Share represents approximately ________ of an LTC. See "Description of Creation and Redemption of Shares."
Baskets are issued and redeemed in exchange for delivery to the Trust or the distribution by the Trust of the amount of cash represented by the Shares being created or redeemed, the amount of which is based on the value of the LTC attributable to each Share of the Trust (net of accrued but unpaid Sponsor's Fees and any accrued but unpaid expenses or liabilities) being created or redeemed determined as of 4:00 p.m. ET on the day the order to create or redeem Baskets is properly received. The Trust is obligated to convert any cash contributed to LTC as soon as practicable, except to the extent necessary to pay expenses. The number of LTC represented by a Basket will gradually decrease over time due to the transfer of the Trust's LTC to pay the Sponsor's Fee and sale of the Trust's LTC to pay any Trust expenses not assumed by the Sponsor. The Trust will not accept or distribute LTC in exchange for Baskets. See "Description of Creation and Redemption of Shares" and "Activities of the Trust—Trust Expenses."
7
The Trust's LTC Holdings
The Trust's "LTC Holdings" is the amount of the Trust's LTC less its liabilities (which include estimated accrued but unpaid fees and expenses), as calculated using the LTC Index Price. The Administrator calculates the Trust's LTC Holdings on a daily basis.
The Administrator also calculates the Trust's LTC Holdings per Share, which equals the Trust's LTC Holdings divided by the number of Shares then outstanding. The Sponsor will publish the Trust's LTC Holdings and LTC Holdings per Share each business day as of 4:00 p.m. ET or as soon thereafter as practicable at the Trust's website at https://coinshares.com/us/etf/____/.
Trust Expenses
The Trust's only ordinary recurring expense is expected to be the remuneration due to the Sponsor (the "Sponsor's Fee"). The Sponsor's Fee will be accrued daily by applying a 0.25% annual rate to the Trust's LTC Holdings. The Sponsor's Fee will be payable in LTC at such times as determined at the Sponsor's sole discretion.
To pay the Sponsor's Fee, the Custodians
    or Prime Broker will, when directed by the Sponsor, (i) withdraw from the LTC Account the number of LTC equal to the accrued but unpaid
    Sponsor's Fee, determined as described above, and (ii) transfer such LTC to an account affiliated with the Sponsor. The Trust is
    not responsible for paying any fees or costs associated with the transfer of LTC to the Sponsor or the sale of LTC for costs not included
    in the Sponsor's Fee.
The Sponsor, from time to time, may waive all
    or a portion of the Sponsor's Fee at its discretion for stated periods of time. The Sponsor is under no obligation to extend a waiver
    after the end of any such stated period, and, if such waiver is not continued, the Sponsor's Fee will be paid in full for subsequent
    periods. Furthermore, the Sponsor may, in its sole discretion, agree to rebate all or a portion of the Sponsor's Fee attributable
    to Shares held by certain institutional investors subject to minimum Share holding and lock up requirements as determined by the Sponsor
    to foster stability in the Trust's asset levels. Any such rebate will be subject to negotiation and written agreement between the
    Sponsor and the investor on a case-by-case basis. The Sponsor is under no obligation to provide any rebates of the Sponsor's Fee.
    Neither the Trust nor the Trustee will be a party to any Sponsor's Fee rebate arrangements negotiated by the Sponsor.
As consideration for its receipt of the Sponsor's Fee, the Sponsor is obligated to assume and pay the following fees and expenses of the Trust: the Marketing Fee, the Administrator Fee, the Custodian Fee, the Prime Broker Fee, the Cash Custodian Fee, the Transfer Agent Fee, the Trustee's fee, applicable license fees, including the licensing fees related to the Index License Agreement, fees and expenses related to trading of Shares on Nasdaq (including marketing, legal and audit fees and expenses), ordinary course legal expenses, audit fees, regulatory fees, including any fees relating to the registration of the Shares with the SEC, printing and mailing costs and costs of maintaining the Trust's website (the "Sponsor-paid Expenses"). There is no cap on the amount of Sponsor-paid Expenses. The Sponsor has also assumed all fees and expenses related to the organization and offering of the Trust and the Shares. At the Sponsor's sole discretion, all or any portion of a Sponsor-paid Expense may be redesignated as an Additional Trust Expense.
8
The Trust may incur certain extraordinary, non-recurring
    expenses and indemnification expenses that are not contractually assumed by the Sponsor (collectively, "Additional Trust Expenses").
To cover Additional Trust Expenses, the Sponsor
    or its delegate may cause the Trust (or its delegate) to convert LTC into U.S. dollars at the price available through the Prime Broker's
    ________ Prime service (less applicable trading fees) through the Trading Platform which the Sponsor is able to obtain using commercially
    reasonable efforts. The number of LTC represented by a Share will decline each time the Trust pays Additional Trust Expenses by transferring
    or selling LTC.
The number of LTC to be delivered to the Sponsor in payment of the Sponsor's Fee or sold to pay Additional Trust Expenses will vary from time to time depending on the level of the Trust's expenses and the value of LTC, as determined using the LTC Index Price or, in certain circumstances, such other fair value measurement as determined by the Sponsor. See "Activities of the Trust—Trust Expenses."
Transfers of LTC
Transfers of LTC (i) to and from a Vault Account and a different Vault Account, (ii) to and from a Vault Account and the Trading Account, and (iii) from the Trading Account to third-party digital asset brokers or dealers are conducted "on chain" in transactions represented on the Litecoin Blockchain. On-chain transactions are subject to all of the risks of the Litecoin Blockchain, including the risk that transactions will be made erroneously and are generally irreversible.
In order to pay the Sponsor's Fee, the Sponsor will transfer LTC from a Vault Account or Trading Account to an account affiliated with the Sponsor.
Termination Events
Upon dissolution of the Trust, the Sponsor will distribute the Trust's remaining LTC or the cash proceeds of the sale of the Trust's remaining LTC (determined at the sole discretion of the Sponsor) to the owners of record of the Shares, after the Sponsor has paid or made provision for the Trust's obligations. Accordingly, Shareholders of record at the time of a liquidation may receive either LTC or cash. See "Description of the Trust Agreement—The Trustee—Termination of the Trust."
Authorized Participants
Baskets may be created or redeemed only by Authorized Participants. Each Authorized Participant must (i) be a registered broker-dealer or other securities market participant, such as a bank or other financial institution, that is not required to register as a broker-dealer to engage in securities transactions and (ii) have entered into an Authorized Participant Agreement with the Sponsor, and the Marketing Agent. See "Description of Creation and Redemption of Shares."
As of the date of this prospectus, the Trust has engaged ________, ________, ________, ________ and ________. as Authorized Participants. Additional Authorized Participants may be added at any time, subject to the discretion of the Sponsor.
Clearance and Settlement
The Shares are evidenced by one or more global certificates that the Transfer Agent issues to DTC. The Shares are, and will only be, available in book-entry form. Shareholders may hold their Shares through DTC if they are direct participants in DTC ("DTC Participants"), or indirectly through entities that are DTC Participants.
9
RISK FACTORS
You should consider carefully
the risks described below before making an investment decision. You should also refer to the other information included in this prospectus,
including the Trust's financial statements and related notes thereto.
Risk Factors
Related to LTC, the Litecoin Blockchain and the Litecoin Network
The value of the
Shares relates directly to the price of LTC, the value of which may be highly volatile and subject to fluctuations due to a number of
factors.
The
value of the Shares relates directly to the value of the LTC held by the Trust and fluctuations in the price of LTC could adversely affect
the value of the Shares. The market price of LTC may be highly volatile, and subject to a number of factors, including:
●
An increase in the global LTC supply;
●
Manipulative trading activity on digital asset trading platforms, which, in many cases, are largely unregulated;
●
The adoption of LTC as a medium of exchange, store-of-value or other consumptive asset and the maintenance
and development of the open-source software protocol of the Litecoin Network;
●
Forks in the Litecoin Network;
●
Investors' expectations with respect to interest rates, the rates of inflation of fiat currencies
or LTC, and digital asset trading platform rates;
●
Consumer preferences and perceptions of LTC specifically and digital assets generally;
●
Fiat currency withdrawal and deposit policies on digital asset trading platforms;
●
The liquidity of digital asset markets and any increase or decrease in trading volume on digital asset
markets;
●
Investment and trading activities of large investors that invest directly or indirectly in LTC;
●
An active derivatives market for LTC or for digital assets generally;
●
A determination that LTC is a security or changes in LTC's status under the federal securities laws;
●
Monetary policies of governments, trade restrictions, currency devaluations and revaluations and regulatory
measures or enforcement actions, if any, that restrict the use of LTC as a form of payment or the purchase of LTC on the digital asset
markets;
●
Global or regional political, economic or financial conditions, events and situations, such as the novel
coronavirus outbreak;
●
Fees associated with processing a LTC transaction and the speed at which LTC transactions are settled;
●
Interruptions in service from or closures or failures of major digital asset trading platforms;
●
Decreased confidence in digital asset trading platforms due to the largely unregulated nature and lack
of transparency surrounding the operations of digital asset trading platforms;
●
Increased competition from other forms of digital assets or payment services; and
●
The Trust's own acquisitions or dispositions of LTC, since there is no limit on the number of LTC
that the Trust may acquire.
In
addition, there is no assurance that LTC will maintain its value in the long or intermediate term. In the event that the price of LTC
declines, the Sponsor expects the value of the Shares to decline proportionately.
The
price of LTC as represented by the Index or by the Trust's principal market may also be subject to momentum pricing due to speculation
regarding future appreciation in value, leading to greater volatility that could adversely affect the value of the Shares. Momentum pricing
typically is associated with growth stocks and other assets whose valuation, as determined by the investing public, accounts for future
appreciation in value, if any. The Sponsor believes that momentum pricing of LTC has resulted, and may continue to result, in speculation
regarding future appreciation in the price of LTC, inflating and making the price of LTC more volatile. As a result, LTC may be more likely
to fluctuate in value due to changing investor confidence, which could impact future appreciation or depreciation in the Index and could
adversely affect the value of the Shares.
10
LTC is a relatively
new technological innovation with a limited operating history.
LTC has a relatively limited
history of existence and operations. There is a limited established performance record for the price of LTC and, in turn, a limited basis
for evaluating an investment in LTC. Although past performance is not necessarily indicative of future results, if LTC had a more established
history, such history might (or might not) provide investors with more information on which to evaluate an investment in the Trust.
A decline in the adoption
of LTC, the Litecoin Network or the Litecoin Blockchain could negatively impact the Trust.
The Sponsor will not have
any strategy relating to the development of LTC, the Litecoin Network or the Litecoin Blockchain. However, a lack of expansion in usage
of LTC, the Litecoin Network and the Litecoin Blockchain could adversely affect an investment in Shares.
The further development and
acceptance of the Litecoin Network, which is part of a new and rapidly changing industry, is subject to a variety of factors that are
difficult to evaluate. The slowing, stopping or reversing of the development or acceptance or usage of the Litecoin Network or Litecoin
Blockchain may adversely affect the price of LTC and therefore an investment in the Shares. The further adoption of LTC will require growth
of the Litecoin Network. Adoption of LTC will also require an accommodating regulatory environment.
The use of digital assets
such as LTC to, among other things, buy and sell goods or services or facilitate cross-border payments is part of a new and rapidly evolving
industry that employs digital assets based upon computer-generated mathematical and/or cryptographic protocols. The Litecoin Network is
a prominent, but not unique, part of this industry. The growth of this industry is subject to a high degree of uncertainty, as new assets
and technological innovations continue to develop and evolve.
Today, there is limited use
of LTC in the retail, commercial, or payments spaces, and, on a relative basis, speculators make up a significant portion of users. Certain
merchants and major retail and commercial businesses have only recently begun accepting LTC and the Litecoin Blockchain as a means of
payment for goods and services. This pattern may contribute to outsized price volatility, which in turn can make LTC less attractive to
merchants and commercial parties as a means of payment. A lack of expansion by LTC into retail and commercial markets or a contraction
of such use may result in a reduction in the price of LTC, which could adversely affect an investment in the Trust.
In addition, there is no assurance
that LTC will maintain its value over the long term. The price of LTC is subject to risks related to its usage. Even if growth in Litecoin
Network adoption occurs in the near or medium term, there is no assurance that LTC usage will continue to grow over the long term. A contraction
in use of LTC may result in increased volatility or a reduction in the price of LTC, which would adversely impact the value of the Shares.
The fixed supply
of LTC may negatively impact the operation of the Litecoin Blockchain.
The
Litecoin Blockchain is structured to allow a maximum of 84 million LTC to be created, which are mined over time with the creation of each
new block. The supply of new LTC is mathematically controlled so that the number of LTC grows at a limited rate pursuant to a pre-set
schedule. The number of LTC awarded for solving a new block is automatically halved after every 840,000 blocks are added to the Litecoin
Blockchain. Currently, the fixed reward for solving a new block is 6.25 LTC per block, and this is expected to decrease by half to become
3.125 LTC after the next 840,000 blocks since the last reward reduction have entered the Litecoin Network, which is expected to be approximately
July 2027. This deliberately controlled rate of LTC creation means that the number of LTC in existence will increase at a controlled rate
until the number of LTC in existence reaches 84 million LTC. As of ________, 202_, approximately ____ million LTC were outstanding, and
estimates of when the 84 million LTC limitation will be reached range from at or near the year 2140.
The
fixed supply of LTC could also contribute to price volatility, especially if demand fluctuates significantly. Since the supply of LTC
is fixed, any significant surge in demand can result in large price spikes. For example, during periods of high market activity or speculation,
the price of LTC could rapidly increase due to the inability to expand supply to match demand. This volatility could make LTC less predictable
for businesses that rely on it for payments. Digital assets with a flexible supply, such as stablecoins, can adjust to maintain a stable
value. LTC, however, could experience price swings that make it less attractive for everyday transactions or long-term financial planning.
11
The
fixed supply of LTC may also not scale well with rapidly expanding use cases. As more businesses, financial institutions, and payment
providers adopt LTC for cross-border transactions and other use cases, there is a risk that the fixed supply may not meet the growing
demand, leading to supply shortages and further price volatility. In the case of massive adoption, the scarcity of LTC could raise its
value too much, making it less appealing for day-to-day transactions or use as a liquidity bridge in cross-border payments, as businesses
might prefer a more stable and widely available currency.
The Trust will
not directly or indirectly participate in any staking program, and accordingly the Shareholders will not receive any staking rewards or
other income.
The
Litecoin Blockchain does not use proof-of-stake validation. Accordingly, neither the Trust, nor the Sponsor, nor the Custodian, nor any
other person associated with the Trust will, directly or indirectly, engage in action where any portion of the Trust's LTC becomes
subject to proof-of-stake validation or is used to earn additional LTC or generate rewards or other income. Accordingly, the Trust may
underperform other pooled investment vehicles that may participate in staking.  Investors who seek to participate in staking rewards
should consider other investment options.
The loss or destruction
of a private key required to access LTC may be irreversible. The Custodian's loss of access to a private key associated with the
Trust's LTC could adversely affect an investment in the Shares.
Transfers of LTC among users
are accomplished via LTC transactions (i.e., sending LTC from one user to another). The creation of an LTC transaction requires the use
of a unique numerical code known as a "private key." In the absence of the correct private key corresponding to a holder's
particular LTC, the LTC is inaccessible. The custody of the Trust's LTC is handled by the Custodian, and the transfer of LTC to
and from Authorized Participants is directed by the Sponsor. The Sponsor has evaluated the procedures and internal controls of the Trust's
Custodian to safeguard the Trust's LTC holdings. If the Custodian's internal procedures and controls are inadequate to safeguard
the Trust's LTC holdings, and the Trust's private key(s) is(are) lost, destroyed or otherwise compromised and no backup of
the private key(s) is(are) accessible, the Trust will be unable to access its LTC, which could adversely affect an investment in the Shares.
In addition, if the Trust's private key(s) is(are) misappropriated and the Trust's LTC holdings are stolen, the Trust could
lose some or all of its LTC holdings, which could adversely impact an investment in the Shares.
New competing
digital assets may result in a reduction in demand for LTC, which could have a negative impact on the price of LTC and may have a negative
impact on the performance of the Trust.
LTC faces significant competition
from other digital assets, as well as from other technologies or payment forms, such as SWIFT, ACH, remittance networks, credit cards
and cash. There is no guarantee that LTC will become a dominant form of cross-border payments, store of value or method of exchange.
Competition from
central bank digital currencies ("CBDCs") and emerging payments initiatives involving financial institutions could adversely
affect the price of LTC and other digital assets.
Central banks in various countries
have introduced digital forms of legal tender ("CBDCs"). China's CBDC project, known as Digital Currency Electronic
Payment, has reportedly been tested in a live pilot program conducted in multiple cities in China. Central banks representing at least
130 countries have published retail or wholesale CBDC work ranging from research to pilot projects. Whether or not they incorporate blockchain
or similar technology, CBDCs, as legal tender in the issuing jurisdiction, could have an advantage in competing with, or replace, LTC
and other cryptocurrencies as a medium of exchange or store of value. Central banks and other governmental entities have also announced
cooperative initiatives and consortia with private sector entities, with the goal of leveraging blockchain and other technology to reduce
friction in cross-border and interbank payments and settlement, and commercial banks and other financial institutions have also recently
announced a number of initiatives of their own to incorporate new technologies, including blockchain and similar technologies, into their
payments and settlement activities, which could compete with, or reduce the demand for, LTC. As a result of any of the foregoing factors,
the price of LTC could decrease, which could adversely affect an investment in the Trust.
12
The price of LTC
may be affected due to stablecoins (including Tether and USDC), the activities of stablecoin issuers and their regulatory treatment.
While
the Trust does not invest in stablecoins, it may nonetheless be exposed to risks that stablecoins pose for the LTC market and other digital
asset markets. Stablecoins are digital assets designed to have a stable value over time as compared to typically volatile digital assets,
and are typically marketed as being pegged to a fiat currency, such as the U.S. dollar, at a certain value. Although the prices of stablecoins
are intended to be stable, their market value may fluctuate. This volatility has in the past apparently impacted the price of LTC. Stablecoins
are a relatively new phenomenon and it is impossible to know all of the risks that they could pose to participants in the LTC market.
In addition, some have argued that some stablecoins, particularly Tether, are improperly issued without sufficient backing in a way that,
when the stablecoin is used to pay for LTC, could cause artificial rather than genuine demand for LTC, artificially inflating the price
of LTC, and also argue that those associated with certain stablecoins may be involved in laundering money. On February 17, 2021, the New
York Attorney General entered into an agreement with Tether's operators, requiring them to cease any further trading activity with
New York persons and pay $18.5 million in penalties for false and misleading statements made regarding the assets backing Tether. On October
15, 2021, the CFTC announced a settlement with Tether's operators in which they agreed to pay $42.5 million in fines to settle charges
that, among others, Tether's claims that it maintained sufficient U.S. dollar reserves to back every Tether stablecoin in circulation
with the "equivalent amount of corresponding fiat currency" held by Tether were untrue.
USDC
is a reserve-backed stablecoin issued by Circle Internet Financial that is commonly used as a method of payment in digital asset markets,
including the LTC market. While USDC is designed to maintain a stable value at US $1.00 at all times, on March 10, 2023, the value of
USDC fell below US $1.00 for multiple days after Circle Internet Financial disclosed that US$3.3 billion of the USDC reserves were held
at Silicon Valley Bank, which had entered FDIC receivership earlier that day. Stablecoins are reliant on the U.S. banking system and U.S.
treasuries, and the failure of either to function normally could impede the function of stablecoins, and therefore could adversely affect
the value of the Shares.
Given
the foundational role that stablecoins play in global digital asset markets, their fundamental liquidity can have a dramatic impact on
the broader digital asset market, including the market for LTC. Because a large portion of the digital asset market still depends on stablecoins
such as Tether and USDC, there is a risk that a disorderly de-pegging or a run on Tether or USDC could lead to dramatic market volatility
in digital assets more broadly. Volatility in stablecoins, operational issues with stablecoins (for example, technical issues that prevent
settlement), concerns about the sufficiency of any reserves that support stablecoins or potential manipulative activity when unbacked
stablecoins are used to pay for other digital assets (including LTC), or regulatory concerns about stablecoin issuers or intermediaries,
such as exchanges, that support stablecoins, could impact individuals' willingness to trade on trading venues that rely on stablecoins,
reduce liquidity in the LTC market, and affect the price of LTC, and in turn impact an investment in the Shares.
13
If
the digital asset award for mining blocks and transaction fees for recording transactions on the Litecoin Network are not sufficiently
high to incentivize miners, or if certain jurisdictions continue to limit or otherwise regulate mining activities, miners may cease expanding
processing power or demand high transaction fees, which could negatively impact the value of LTC and the value of the Shares.
If
the digital asset awards for mining blocks or the transaction fees for recording transactions on the Litecoin Network are not sufficiently
high to incentivize miners, or if certain jurisdictions continue to limit or otherwise regulate mining activities, miners may cease expending
processing power to mine blocks and the security of the Litecoin Blockchain could be compromised. For example, the realization of one
or more of the following risks could materially adversely affect the value of the Shares:
●
Over the past several years, digital asset mining
operations have evolved from individual users mining with computer processors, graphics processing units and first-generation application
specific integrated circuit machines to "professionalized" mining operations using proprietary hardware or sophisticated machines.
If the profit margins of digital asset mining operations are not sufficiently high, including due to an increase in electricity costs,
digital asset miners are more likely to immediately sell digital assets earned by mining, resulting in an increase in liquid supply of
that digital asset, which would generally tend to reduce that digital asset's market price.
●
A reduction in the processing power expended
by miners could increase the likelihood of a malicious actor or botnet obtaining control on the Litecoin Network. See
"—If
a malicious actor or botnet obtains control of more than 50% of the processing power on the Litecoin Network, or otherwise obtains control
over the Litecoin Network through its influence over core developers or otherwise, such actor or botnet could manipulate the Blockchain
to adversely affect the value of the Shares or the ability of the Trust to operate."
●
Miners have historically accepted relatively
low transaction confirmation fees on most digital asset networks. If miners demand higher transaction fees for recording transactions
in the Litecoin Blockchain or a software upgrade automatically charges fees for all transactions on the Litecoin Network, the cost of
using LTC may increase and the marketplace may be reluctant to accept LTC as a means of payment. Miners may demand higher transaction
fees for a variety of reasons, including to compensate for reduction in the reward received for validating a block as a result of the
halving of LTC creation every 840,000 blocks in accordance with LTC's protocol.
●
Alternatively, miners could collude in an anti-competitive
manner to reject low transaction fees on the Litecoin Network and force users to pay higher fees, thus reducing the attractiveness of
the Litecoin Network. Higher transaction fees resulting from collusion or otherwise may adversely affect the attractiveness of the Litecoin
Network, the value of LTC and the value of the Shares.
●
To the extent that any miners cease to record
transactions that do not include the payment of a transaction fee in mined blocks or do not record a transaction because the transaction
fee is too low, such transactions will not be recorded on the Litecoin Blockchain until a block is mined by a miner who does not require
the payment of transaction fees or is willing to accept a lower fee. Any widespread delays in the recording of transactions could result
in a loss of confidence in the digital asset network.
●
Digital asset mining operations can consume significant
amounts of electricity, which may have a negative environmental impact and give rise to public opinion against allowing, or government
regulations restricting, the use of electricity for mining operations. Additionally, miners may be forced to cease operations during an
electricity shortage or power outage, or when the cost of electricity as compared to mining, validating, or transaction fees makes conducting
its operations uneconomical.
If the Litecoin Network
is used to facilitate illicit activities or evade sanctions, businesses that facilitate transactions in LTC could be at increased risk
of criminal or civil lawsuits, or of having services cut off, which could negatively affect the price of LTC and the value of the Shares.
Digital asset networks have
in the past been, and may continue to be, used to facilitate illicit activities. If the Litecoin Network is used to facilitate illicit
activities or evade sanctions, businesses that facilitate transactions in LTC could be at increased risk of potential criminal or civil
lawsuits, or of having banking or other services cut off, and LTC could be removed from digital asset trading platforms as a result of
these concerns. Other service providers of such businesses may also cut off services if there is a concern that the Litecoin Network is
being used to facilitate crime. Any of the aforementioned occurrences could increase regulatory scrutiny of the Litecoin Network and/or
adversely affect the price of LTC, the attractiveness of the Litecoin Network and an investment in the Shares of the Trust.
The Trust and the Sponsor,
acting on behalf of the Trust, directly interact with parties that are themselves subject to AML program requirements under the Bank Secrecy
Act or similar laws.
14
The Authorized Participants
are registered broker-dealers or financial institutions exempt from broker-dealer registration and therefore are subject to AML and countering
the financing of terrorism obligations under the Bank Secrecy Act as administered by FinCEN and further overseen by the SEC and FINRA.
In accordance with its regulatory obligations, the Authorized Participants conduct customer due diligence.
When the Trust and the Sponsor,
acting on behalf of the Trust, buy, sell or deliver, as applicable, LTC, they transact directly with financial institution counterparties
that are subject to U.S. federal and/or state licensing requirements or similar laws in non-U.S. jurisdictions and maintain practices
and policies designed to comply with AML and KYC regulations or similar laws in non-U.S. jurisdictions. The Trust will not hold any LTC
except those that have been delivered by the Trust's LTC trading counterparties in connection with creation requests.
If the Sponsor, the Trust,
or an Authorized Participant were nevertheless to transact with such a sanctioned entity, the Sponsor, the Trust, and such Authorized
Participant would be at increased risk of potential criminal or civil lawsuits.
A
temporary or permanent "fork" or a "clone" could adversely affect the value of the Shares.
The
Litecoin Network operates using open-source protocols, meaning that any user can download the software, modify it and then propose that
the users and miners of LTC adopt the modification. When a modification is introduced and a substantial majority of users and miners'
consent to the modification, the change is implemented and the network remains uninterrupted. However, if less than a substantial majority
of users and miners' consent to the proposed modification, and the modification is not compatible with the software prior to its
modification, the consequence would be what is known as a "hard fork" of the Litecoin Network, with one group running the
pre-modified software and the other running the modified software. The effect of such a fork would be the existence of two versions of
LTC running in parallel, yet lacking interchangeability. Some users of the original network may harbor ill will toward the new network,
and vice versa. A fork may also occur as a result of an unintentional or unanticipated software flaw in the various versions of otherwise
compatible software that users run. Such a fork could lead to users and miners abandoning the digital asset with the flawed software.
It is possible, however, that a substantial number of users and miners could adopt an incompatible version of the digital asset while
resisting community-led efforts to merge the two chains. This could result in a permanent fork.
Forks
may also occur as a digital asset network's community's response to a significant security breach. For example, in July 2016,
Ethereum "forked" into Ethereum and a new digital asset, Ethereum Classic, as a result of the Ethereum network community's
response to a significant security breach. In June 2016, an anonymous hacker exploited a smart contract running on the Ethereum network
to syphon approximately $60 million of Ether held by The DAO, a distributed autonomous organization, into a segregated account. In response
to the exploit, most participants in the Ethereum community elected to adopt a "fork" that effectively reversed the exploit.
However, a minority of users continued to develop the original blockchain, referred to as "Ethereum Classic" with the digital
asset on that blockchain now referred to as ETC. ETC now trades on several digital asset trading platforms. A fork may also occur as a
result of an unintentional or unanticipated software flaw in the various versions of otherwise compatible software that users run. Such
a fork could lead to users and miners abandoning the digital asset with the flawed software. It is possible, however, that a substantial
number of users and miners could adopt an incompatible version of the digital asset while resisting community-led efforts to merge the
two chains. This could result in a permanent fork, as in the case of Ethereum and Ethereum Classic.
In
addition, many developers have previously initiated hard forks in the bitcoin blockchain to launch new digital assets, such as Bitcoin
Cash, Bitcoin Gold, Bitcoin Silver and Bitcoin Diamond, as well as the Bitcoin Cash blockchain to launch a new digital asset, Bitcoin
Satoshi's Vision. To the extent such digital assets compete with Litecoin, such competition could impact demand for LTC and could
adversely impact the value of the Shares.
Furthermore,
a hard fork can lead to new security concerns. For example, when the Ethereum and Ethereum Classic networks, two other digital asset networks,
split in July 2016, replay attacks, in which transactions from one network were rebroadcast to nefarious effect on the other network,
plagued Ethereum trading platforms through at least October 2016. An Ethereum trading platform announced in July 2016 that it had lost
40,000 Ethereum Classic, worth about $100,000 at that time, as a result of replay attacks. Similar replay attack concerns occurred in
connection with the Bitcoin Cash and Bitcoin Satoshi's Vision networks split in November 2018. Another possible result of a hard
fork is an inherent decrease in the level of security due to significant amounts of mining power remaining on one network or migrating
instead to the new forked network. After a hard fork, it may become easier for an individual miner or mining pool's hashing power
to exceed 50% of the processing power of a digital asset network that retained or attracted less mining power, thereby making digital
asset networks that rely on proof-of-work more susceptible to attack.
15
Digital
asset networks and related protocols may also be cloned. Unlike a fork of a digital asset network, which modifies an existing blockchain,
and results in two competing digital asset networks, each with the same genesis block, a "clone" is a copy of a protocol's
codebase, but results in an entirely new blockchain and new genesis block. Tokens are created solely from the new "clone"
network and, in contrast to forks, holders of tokens of the existing network that was cloned do not receive any tokens of the new network.
For example, Litecoin is the result of a clone of the bitcoin network. A "clone" results in a competing network that has characteristics
substantially similar to the network it was based on, subject to any changes as determined by the developer(s) that initiated the clone.
A
hard fork may adversely affect the price of LTC at the time of announcement or adoption. For example, the announcement of a hard fork
could lead to increased demand for the pre-fork digital asset, in anticipation that ownership of the pre-fork digital asset would entitle
holders to a new digital asset following the fork. The increased demand for the pre-fork digital asset may cause the price of the digital
asset to rise. After the hard fork, it is possible the aggregate price of the two versions of the digital asset running in parallel would
be less than the price of the digital asset immediately prior to the fork. Furthermore, while the Trust would be entitled to both versions
of the digital asset running in parallel, the Sponsor will, as permitted by the terms of the Trust Agreement, determine which version
of the digital asset is generally accepted as the Litecoin Network and should therefore be considered the appropriate network for the
Trust's purposes, and there is no guarantee that the Sponsor will choose the digital asset that is ultimately the most valuable
fork. Either of these events could therefore adversely impact the value of the Shares. For example, on November 15, 2020, certain Bitcoin
Cash developers enacted a proposed update to the Bitcoin Cash Network requiring 8% of mined tokens to be redistributed to the developer
pool, causing a hard fork, and created a network with a token labeled BCHA. For the days following the fork, the price of BCH fluctuated
from $246.15 on November 15, 2020 to $256.55 on November 20, 2020. A clone may also adversely affect the price of LTC at the time of announcement
or adoption. For example, on November 6, 2016, Rhett Creighton, a Zcash developer, cloned the Zcash network to launch Zclassic, a substantially
identical version of the Zcash network that eliminated the Founders' Reward. For the days following the date the first Zclassic
block was mined, the price of ZEC fell from $504.57 on November 5, 2016 to $236.01 on November 7, 2016 in the midst of a broader sell
off of ZEC beginning immediately after the Zcash network launch on October 28, 2016.
A
future fork in or clone of the Litecoin Network could adversely affect the value of the Shares or the ability of the Trust to operate.
In the event of
a hard fork of the Litecoin Blockchain, the Sponsor will, pursuant to the terms of the Trust Agreement, use its discretion to determine
which network should be considered the appropriate network for the Trust's purposes, and in doing so may adversely affect the value
of the Shares.
In the highly unlikely event
of a hard fork of the Litecoin Blockchain, the Sponsor will use its discretion to determine, promptly and in good faith, which digital
asset network, among a group of incompatible forks of the Litecoin Blockchain, is generally accepted as the Litecoin Blockchain and should
therefore be considered the appropriate network for the Trust's purposes. The Sponsor will base its determination on a variety of
then-relevant factors, including, but not limited to, the Sponsor's beliefs regarding expectations of the core developers of LTC,
users, services, businesses, miners and other constituencies, as well as the actual continued acceptance of, and miner and community engagement
with, the Litecoin Blockchain, along with market capitalization and trading activity. There is no guarantee that the Sponsor will choose
the cryptocurrency that is ultimately the most valuable fork, and the Sponsor's decision may adversely affect the value of the Shares
as a result. The Sponsor may also disagree with Shareholders, the Custodian, security vendors and the Benchmark Administrator on what
is generally accepted as LTC and should therefore be considered "LTC" for the Trust's purposes, which may also adversely
affect the value of the Shares as a result.
In the event of
a hard fork of the Litecoin Blockchain, the Custodian's operations may be interrupted or subject to additional security risks that
could disrupt the Trust's ability to process creations and redemptions of Shares or otherwise threaten the security of the Trust's
LTC holdings.
In the event of a hard fork
of the Litecoin Blockchain, the Custodian may temporarily halt the ability of customers (including the Trust) to deposit, withdraw or
transfer LTC on the Custodian's platform. Such a delay may be intended to permit the Custodian to assess the resulting versions
of the Litecoin Blockchain, to determine how best to securely "split" the LTC from the Forked Asset, and to prevent malicious
users from conducting "replay attacks" (
i.e.
, broadcasting transactions on both versions of the forked networks to
put Custodian assets at risk). As a result, the Trust is likely to suspend creations and redemptions during a period in which the Custodian's
operations are halted.
In addition, any losses experienced
by the Custodian due to a hard fork, including due to replay attacks or technological errors in assessing the fork, could have a materially
adverse impact on an investment in the Shares.
16
Shareholders may
not receive the benefits of any forks or "airdrops."
In addition to forks, a digital
asset, including LTC, may become subject to a similar occurrence known as an "airdrop." In an airdrop, the promotors of a
new digital asset announce to holders of another digital asset that such holders will be entitled to claim a certain amount of the new
digital asset for free, based on the fact that they hold such other digital asset. Such airdrops are not uncommon on the Litecoin Blockchain.
Airdrops may be conducted by sending a token to the holders of set amounts of LTC or to particular public addresses on the Litecoin Blockchain.
Airdrops may involve a user being entitled to claim tokens on a decentralized application, second-layer network or entirely separate digital
asset network. A user entitled to receive airdrops may be required to take little or significant actions in order to receive such airdropped
tokens. Shareholders may not receive the benefits of any forks; the Trust may not choose, or be able, to participate in an airdrop; and
the timing of receiving any benefits from a fork, airdrop or similar event is uncertain.
A right to receive any such
benefit of a fork or airdrop is referred to as an "Incidental Right" and any digital asset acquired through an Incidental
Right is known as an "IR Asset." Pursuant to the Trust Agreement, the Trust has explicitly disclaimed all Incidental Rights
and IR Assets. Such assets are not considered assets of the Trust at any point in time and will not be taken into account for purposes
of determining the Trust's NAV and the NAV per Share.
Pursuant to the Trust Agreement,
to the extent that the Trust involuntarily receives such assets in a Trust wallet, it will, as soon as practicable and, if possible, immediately,
distribute such assets to the Sponsor. Once such assets have been acquired, the Sponsor may take any lawful action necessary or desirable
in connection with its acquisition thereof. In the event that the Sponsor decides to sell the Incidental Right(s) and/or IR Asset(s),
it will seek to do so for cash. This may be a sale of the Incidental Right(s) and/or IR Asset(s) directly in exchange for cash, or in
exchange for another digital asset that may subsequently be exchanged for cash. The Sponsor would then contribute that cash back to the
Trust, which in turn would distribute the cash to the Depository Trust Company ("DTC") to be distributed to Shareholders in
proportion to the number of Shares owned.
Although the Sponsor intends,
if possible, to arrange for the sale of any Incidental Right(s) and/or IR Asset(s) it receives from the Trust and subsequently contribute
such cash proceeds back to the Trust, it is under no obligation to do so. There are likely to be operational, tax, securities law, regulatory,
legal and practical issues that significantly limit, or prevent entirely, the Sponsor's ability to realize a benefit from any such
Incidental Right(s) and/or IR Asset(s). The Sponsor may choose to evaluate any such fork, airdrop or similar occurrence on a case-by-case
basis in consultation with its legal advisers, tax consultants and custodian. In determining whether to attempt to acquire and/or retain
any Incidental Right(s) and/or IR Asset(s), the Sponsor expects to take into consideration whatever factors it deems relevant in its discretion,
including, without limitation:
●
the availability of a safe and practical way to take custody of the Incidental Right or IR Asset;
●
the cost or operational burden of taking possession and/or maintaining ownership of the Incidental Right
or IR Asset and whether such cost or burden exceeds the benefits of owning such Incidental Rights or IR Asset or the proceeds that would
be realized from a sale thereof;
●
whether there are any legal or regulatory restrictions on or risks or consequences arising from, or tax
implications with respect to, the acceptance, retention, ownership, sale, transfer, abandonment, distribution or disposal or disposition
of the Incidental Right or IR Asset, regardless of whether there is a safe and practical way to take custody of and secure such Incidental
Right or IR Asset;
●
the existence of a suitable market into which the Incidental Right or IR Asset may be sold; and
●
whether claiming, owning, selling, or otherwise taking any action in respect of Incidental Right or IR
Asset may create legal or regulatory risks, liability, or burdens of any kind for the Sponsor (including, without limitation, if such
Incidental Right or IR Asset is, or may be, a security under federal securities laws or a commodity interest under the Commodity Exchange
Act).
The Sponsor is under no obligation
to realize any economic benefit from any Incidental Right(s) and/or IR Asset(s) it receives from the Trust. The Sponsor may instead determine,
in its sole discretion, to abandon such Incidental Rights or IR Assets permanently and irrevocably for no consideration. Before the Trust
claims any Incidental Right(s) and/or IR Asset(s) resulting from a fork or airdrop on the Litecoin Blockchain (other than LTC), the Trust
would need to seek and obtain certain regulatory approvals, including an amendment to the Trust's registration statement of which
this Prospectus is a part and approval of an application by the Exchange to amend its listing rules.
17
If
a malicious actor or botnet obtains control of more than 50% of the processing power on the Litecoin Network, or otherwise obtains control
over the Litecoin Network through its influence over core developers or otherwise, such actor or botnet could manipulate the Blockchain
to adversely affect the value of the Shares or the ability of the Trust to operate.
If
a malicious actor or botnet (a volunteer or hacked collection of computers controlled by networked software coordinating the actions of
the computers) obtains a majority of the processing power on the Litecoin Network, it may be able to alter the Blockchain on which transactions
in LTC rely by constructing fraudulent blocks or preventing certain transactions from completing in a timely manner, or at all. The malicious
actor or botnet could also control, exclude or modify the ordering of transactions. Although the malicious actor or botnet may not be
able to generate new digital assets or transactions using such control, it may be able to "double-spend" its own digital assets
(i.e., spend the same tokens in more than one transaction) and prevent the confirmation of other users' transactions for so long
as it maintained control. To the extent that such malicious actor or botnet did not yield its control of the processing power on the Litecoin
Network or the LTC community did not reject the fraudulent blocks as malicious, reversing any changes made to the Blockchain may not be
possible. Further, a malicious actor or botnet could create a flood of transactions in order to slow down the Litecoin Network.
For
example, in August 2020, the Ethereum Classic network was the target of two double-spend attacks by an unknown actor or actors that gained
more than 50% of the processing power of the Ethereum Classic network. The attack resulted in reorganizations of the Ethereum Classic
blockchain that allowed the attacker or attackers to reverse previously recorded transactions in excess of over $5.0 million and $1.0
million. Any similar attacks on the Litecoin Network could negatively impact the value of LTC and the value of the Shares.
Although
there are no known reports of malicious activity on, or control of, the Litecoin Network, it is believed that certain mining pools may
have exceeded the 50% threshold on the Litecoin Network. The crossing of the 50% threshold indicates a greater risk that a single mining
pool or small group of mining pools, for example, could exert authority over the validation of LTC transactions, and this risk is heightened
if over 50% of the processing power on the network falls within the jurisdiction of a single governmental authority.
The digital asset
trading platforms on which LTC trades are relatively new and largely unregulated or may not be complying with existing regulations.
Digital asset markets, including
spot markets for LTC, are growing rapidly. The digital asset trading platforms through which LTC and other digital assets trade are new
and largely unregulated or may not be complying with existing regulations. These markets are local, national and international and include
a broadening range of digital assets and participants. Significant trading may occur on systems and platforms with minimum predictability.
Spot markets may impose daily, weekly, monthly or customer-specific transaction or withdrawal limits or suspend withdrawals entirely,
rendering the exchange of LTC for fiat currency difficult or impossible. Participation in spot markets requires users to take on credit
risk by transferring LTC from a personal account to a third party's account.
Digital asset trading platforms
do not appear to be subject to, or may not comply with, regulation in a manner similar to other regulated trading platforms, such as national
securities exchanges or designated contract markets. Many digital asset trading platforms are unlicensed, are unregulated, operate without
extensive supervision by governmental authorities, and do not provide the public with significant information regarding their ownership
structure, management team, corporate practices, cybersecurity, and regulatory compliance. In particular, those located outside the United
States may be subject to significantly less stringent regulatory and compliance requirements in their local jurisdictions. Digital asset
trading platforms may be out of compliance with existing regulations.
As a result, trading activity
on or reported by these digital asset trading platforms is generally significantly less regulated than trading in regulated U.S. securities
and commodities markets and may reflect behavior that would be prohibited in regulated U.S. trading venues. Furthermore, many digital
asset trading platforms lack certain safeguards put in place by more traditional exchanges to enhance the stability of trading on the
platform and prevent flash crashes, such as limit-down circuit breakers. As a result, the prices of digital assets such as LTC on digital
asset trading platforms may be subject to larger and/or more frequent sudden declines than assets traded on more traditional exchanges.
Tools to detect and deter fraudulent or manipulative trading activities (such as market manipulation, front-running of trades, and wash-trading)
may not be available to or employed by digital asset trading platforms or may not exist at all. Consequently, the marketplace may lose
confidence in, or may experience problems relating to, these venues.
18
No digital asset trading platform
on which LTC trades is immune from these risks. The closure or temporary shutdown of the digital asset trading platforms due to fraud,
business failure, hackers or malware, or government-mandated regulation may reduce confidence in the Litecoin Network and can slow down
the mass adoption of LTC. Further, digital asset trading platform failures or the failure of any other major component of the overall
LTC ecosystem can have an adverse effect on LTC markets and the price of LTC, and could therefore have a negative impact on the performance
of the Trust.
Negative perception, a lack
of stability in the digital asset trading platforms, manipulation of LTC trading platforms by customers and/or the closure or temporary
shutdown of such trading platforms due to fraud, business failure, hackers or malware, or government-mandated regulation may reduce confidence
in LTC generally and result in greater volatility in the market price of LTC and the Shares of the Trust. Furthermore, the closure or
temporary shutdown of an LTC trading platform may impact the Trust's ability to determine the value of its LTC holdings or for the
Trust's Authorized Participants to effectively arbitrage the Trust's Shares.
Digital asset
trading platforms may be exposed to security breaches.
The nature of the assets held
at LTC trading platforms makes them appealing targets for hackers and a number of LTC trading platforms have been victims of cybercrimes.
Over the past several years, some digital asset trading platforms have been closed due to security breaches. In many of these instances,
the customers of such digital asset trading platforms were not compensated or made whole for the partial or complete losses of their account
balances in such digital asset trading platforms. While, generally speaking, smaller digital asset trading platforms are less likely to
have the infrastructure and capitalization that make larger digital asset trading platforms more stable, larger digital asset trading
platforms are more likely to be appealing targets for hackers and malware. For example, the collapse of Mt. Gox, which filed for bankruptcy
protection in Japan in late February 2014, demonstrated that even the largest digital asset trading platforms could be subject to abrupt
failure with consequences both for users of digital asset trading platforms and for the digital asset industry as a whole. In particular,
in the two weeks that followed the February 7, 2014, halt of bitcoin withdrawals from Mt. Gox, the value of one bitcoin fell on other
exchanges from around $795 on February 6, 2014, to $578 on February 20, 2014. Additionally, in January 2015, Bitstamp announced that approximately
19,000 bitcoin had been stolen from its operational or "hot" wallets. Further, in August 2016, it was reported that almost
120,000 bitcoin worth around $78 million were stolen from Bitfinex, a large digital asset exchange. The value of bitcoin and other digital
assets immediately decreased by more than 10% following reports of the theft at Bitfinex. In July 2017, FinCEN assessed a $110 million
fine against BTC-e, a now-defunct digital asset exchange, for facilitating crimes such as drug sales and ransomware attacks. In December
2017, Yapian, the operator of Seoul-based cryptocurrency exchange Youbit, suspended digital asset trading and filed for bankruptcy following
a hack that resulted in a loss of 17% of Yapian's assets. Following the hack, Youbit users were allowed to withdraw approximately
75% of the digital assets in their exchange accounts, with any potential further distributions to be made following Yapian's pending
bankruptcy proceedings. In January 2018, the Japanese digital asset trading platform, Coincheck was hacked, resulting in losses of approximately
$535 million, and in February 2018, the Italian digital asset trading platform Bitgrail was hacked, resulting in approximately $170 million
in losses. In May 2019, one of the world's largest digital asset trading platforms, Binance, was hacked, resulting in losses of
approximately $40 million.
Digital asset
trading platforms may be exposed to fraud and market manipulation.
The blockchain infrastructure
could be used by certain market participants to exploit arbitrage opportunities through schemes such as front-running, spoofing, pump-and-dump
and fraud across different systems, platforms or geographic locations. As a result of reduced oversight, these schemes may be more prevalent
in digital asset markets than in the general market for financial products.
The SEC has identified possible
sources of fraud and manipulation in the LTC market generally, including, among others, (1) "wash trading"; (2) persons with
a dominant position in LTC manipulating LTC pricing; (3) hacking of the Litecoin Blockchain and trading platforms; (4) malicious control
of the Litecoin Blockchain; (5) trading based on material, nonpublic information (for example, plans of market participants to significantly
increase or decrease their holdings in LTC, new sources of demand for LTC, etc.) or based on the dissemination of false and misleading
information; (6) manipulative activity involving purported "stablecoins," including Tether; and (7) fraud and manipulation
at LTC trading platforms.
Over the past several years,
a number of digital asset trading platforms have been closed or faced issues due to fraud. In many of these instances, the customers of
such digital asset trading platforms were not compensated or made whole for the partial or complete losses of their account balances in
such digital asset trading platforms.
19
In 2019, there were reports
claiming that 80.95% of bitcoin trading volume on digital asset trading platforms was false or noneconomic in nature, with specific focus
on unregulated exchanges located outside of the United States. Such reports alleged that certain overseas exchanges have displayed suspicious
trading activity suggestive of a variety of manipulative or fraudulent practices. Other academics and market observers have put forth
evidence to support claims that manipulative trading activity has occurred on certain digital asset exchanges. For example, in a 2017
paper titled "Price Manipulation in the Bitcoin Ecosystem" sponsored by the Interdisciplinary Cyber Research Center at Tel
Aviv University, a group of researchers used publicly available trading data, as well as leaked transaction data from a 2014 Mt. Gox security
breach, to identify and analyze the impact of "suspicious trading activity" on Mt. Gox between February and November 2013,
which, according to the authors, caused the price of bitcoin to increase from around $150 to more than $1,000 over a two-month period.
In August 2017, it was reported that a trader or group of traders nicknamed "Spoofy" was placing large orders on Bitfinex
without actually executing them, presumably in order to influence other investors into buying or selling by creating a false appearance
that greater demand existed in the market. In December 2017, an anonymous blogger (publishing under the pseudonym Bitfinex'd) cited
publicly available trading data to support his or her claim that a trading bot nicknamed "Picasso" was pursuing a paint-the-tape-style
manipulation strategy by buying and selling bitcoin and Bitcoin Cash between affiliated accounts in order to create the appearance of
substantial trading activity and thereby influence the price of such assets.
In November 2022, FTX, one
of the largest digital asset trading platforms by volume at the time, halted customer withdrawals amid rumors of the company's liquidity
issues and likely insolvency, which were subsequently corroborated by its CEO. Shortly thereafter, FTX's CEO resigned and FTX and
many of its affiliates filed for bankruptcy in the United States, while other affiliates have entered insolvency, liquidation, or similar
proceedings around the globe, following which the U.S. Department of Justice brought criminal fraud and other charges, and the SEC and
CFTC brought civil securities and commodities fraud charges, against certain of FTX's and its affiliates' senior executives,
including its former CEO. Around the same time, there were reports that approximately $300 million to $600 million of digital assets were
removed from FTX. The full facts remain unknown, including whether such removal was the result of a hack, theft, insider activity, or
other improper behavior.
The potential consequences
of a digital asset trading platform's failure or failure to prevent market manipulation could adversely affect the value of the
Shares. Any market abuse, and a loss of investor confidence in LTC, may adversely impact pricing trends in LTC markets broadly, as well
as an investment in Shares of the Trust.
Digital asset
trading platforms may be exposed to wash trading.
Digital
asset trading platforms may be susceptible to wash trading. Wash trading occurs when offsetting trades are entered into for other than
bona fide reasons, such as the desire to inflate reported trading volumes. Wash trading may be motivated by non-economic reasons, such
as a desire for increased visibility on popular websites that monitor markets for digital assets so as to improve a trading platform's
attractiveness to investors who look for maximum liquidity, or it may be motivated by the ability to attract listing fees from token issuers
who seek the most liquid and high-volume trading platforms on which to list their tokens. Results of wash trading may include unexpected
obstacles to trade and erroneous investment decisions based on false information.
Even
in the United States, there have been allegations of wash trading even on regulated trading venues. Any actual or perceived false trading
on digital asset trading platforms, and any other fraudulent or manipulative acts and practices, could adversely affect the value of LTC
and/or negatively affect the market perception of LTC.
To
the extent that wash trading either occurs or appears to occur in digital asset trading platforms on which LTC trades, investors may develop
negative perceptions about LTC and the digital assets industry more broadly, which could adversely impact the price of LTC and, therefore,
the price of the Shares. Wash trading also may place more legitimate digital asset trading platforms at a relative competitive disadvantage.
20
Digital asset
trading platforms may be exposed to front-running.
Digital
asset trading platforms may be susceptible to "front-running," which refers to the process when someone uses technology or
market advantage to get prior knowledge of upcoming transactions. Front-running is a frequent activity on centralized as well as decentralized
trading platforms. By using bots functioning on a millisecond-scale timeframe, bad actors are able to take advantage of the forthcoming
price movement and make economic gains at the cost of those who had introduced these transactions. The objective of a front runner is
to buy tokens at a low price and later sell them at a higher price while simultaneously exiting the position. To the extent that front-running
occurs, it may result in investor frustrations and concerns as to the price integrity of digital asset trading platforms and digital assets
more generally.
Momentum pricing.
The market price of LTC is
not based on any kind of claim, nor is it backed by any physical asset. Instead, the market value depends on the expectation of being
usable in future transactions and continued interest from investors. This strong correlation between an expectation and market value is
the basis for the current (and probable future) volatility of the market price of LTC and may increase the likelihood of momentum pricing.
Momentum pricing typically
is associated with growth stocks and other assets whose valuation, as determined by the investing public, is impacted by appreciation
in value. Momentum pricing may result in speculation regarding future appreciation in the value of digital assets, which inflates prices
and leads to increased volatility. As a result, LTC may be more likely to fluctuate in value due to changing investor confidence in future
appreciation or depreciation in prices, which could adversely affect the price of LTC and, in turn, an investment in the Trust.
The price of LTC as represented
by the Index may also be subject to momentum pricing due to speculation regarding future appreciation in value, leading to greater volatility
that could adversely affect the value of the Shares. Momentum pricing of LTC has previously resulted, and may continue to result, in speculation
regarding future appreciation or depreciation in the price of LTC, further contributing to volatility and potentially inflating prices
at any given time. These dynamics may impact the value of an investment in Trust.
Some market observers have
asserted that in time, the price of LTC will fall to a fraction of its current value, or even to zero. LTC has not been in existence long
enough for market participants to assess these predictions with any precision, but if these observers are even partially correct, an investment
in the Shares may turn out to be substantially worthless.
Political or economic
crises may motivate large-scale sales of LTC, which could result in a reduction in the price of LTC and adversely affect an investment
in the Shares.
As an alternative to fiat
currencies that are backed by central governments, LTC is subject to supply and demand forces based upon the desirability of an alternative,
decentralized means of buying and selling goods and services, and it is unclear how such supply and demand will be impacted by geopolitical
events. Nevertheless, political or economic crises may motivate large-scale acquisitions or sales of LTC, either globally or locally.
Large-scale sales of LTC would result in a reduction in its price and adversely affect an investment in the Shares.
Ownership of LTC
is pseudonymous, and the supply of accessible LTC is unknown. Entities with substantial holdings in LTC may engage in large-scale sales
or distributions, either on nonmarket terms or in the ordinary course, which could result in a reduction in the price of LTC and adversely
affect an investment in the Shares.
There is no registry showing
which individuals or entities own LTC or the quantity of LTC that is owned by any particular person or entity. It is possible, and in
fact, reasonably likely, that a small group of early LTC adopters hold a significant proportion of the LTC that has been created to date.
There are no regulations in place that would prevent a large holder of LTC from selling LTC it holds. To the extent such large holders
of LTC engage in large-scale sales or distributions, either on nonmarket terms or in the ordinary course, it could result in a reduction
in the price of LTC and adversely affect an investment in the Shares.
21
Irrevocable nature of
blockchain-recorded transactions.
LTC transactions recorded
on the Litecoin Blockchain are not, from an administrative perspective, reversible without the consent and active participation of the
recipient of the transaction or, in theory, control or consent of a majority of the Litecoin Blockchain's aggregate hash rate. Once
a transaction has been verified and recorded in a block that is added to the blockchain, an incorrect transfer of LTC or a theft of LTC
generally will not be reversible, and the Trust may not be capable of seeking compensation for any such transfer or theft. It is possible
that, through computer or human error, or through theft or criminal action, the Trust's LTC could be transferred from custody accounts
in incorrect quantities or to unauthorized third parties. To the extent that the Trust is unable to seek a corrective transaction with
such third party or is incapable of identifying the third party that has received the Trust's LTC through error or theft, the Trust
will be unable to revert or otherwise recover incorrectly transferred LTC. To the extent that the Trust is unable to seek redress for
such error or theft, such loss could adversely affect the value of the Shares.
A disruption of the
internet may affect Litecoin Blockchain operations, which may adversely affect the LTC industry and an investment in the Trust.
The Litecoin Blockchain relies
on the internet. A significant disruption of internet connectivity could disrupt the Litecoin Blockchain's functionality until such
disruption is resolved. A disruption in the internet could adversely affect an investment in the Trust or the ability of the Trust to
operate. In particular, some variants of digital assets have experienced a number of denial-of-service attacks, which have led to temporary
delays in block creation and digital asset transfers.
Digital assets are also susceptible
to border gateway protocol hijacking ("BGP hijacking"). Such an attack can be a very effective way for an attacker to intercept
traffic en route to a legitimate destination. BGP hijacking impacts the way different nodes and miners are connected to one another to
isolate portions of them from the remainder of the network, which could lead to a risk of the network allowing double-spending and other
security issues. If BGP hijacking occurs on the Litecoin Blockchain, participants may lose faith in the security of LTC, which could affect
LTC's value and consequently the value of the Shares.
Any internet failures or internet
connectivity-related attacks that impact the ability to transfer LTC could have a material adverse effect on the price of LTC and the
value of an investment in the Shares.
Changes
in the governance of a digital asset network or protocol may not receive sufficient support from users and miners, which may negatively
affect that digital asset network's or protocol's ability to grow and respond to challenges.
The
governance of some digital asset networks and protocols, such as the Litecoin Network, is generally by voluntary consensus and open competition.
For such networks and protocols, there may be a lack of consensus or clarity on that network's or protocol's governance, which
may stymie such network's or protocol's utility, adaptability and ability to grow and face challenges.
The
foregoing notwithstanding, the underlying software for some digital asset networks and protocols, such as the Litecoin Network, is informally
or formally managed or developed by a group of core developers that propose amendments to the relevant network's or protocol's
source code. Core developers' roles may evolve over time, generally based on self-determined participation. If a significant majority
of users and miners were to adopt amendments to the Litecoin Network based on the proposals of such core developers, the Litecoin Network
would be subject to new source code that may adversely affect the value of LTC.
As
a result of the foregoing, it may be difficult to find solutions or marshal sufficient effort to overcome any future problems, especially
long-term problems, on digital asset networks.
Decentralized governance
of the Litecoin Blockchain could have a negative impact on the performance of the Trust.
Governance of decentralized
networks, such as the Litecoin Blockchain, is achieved through voluntary consensus and open competition. In other words, the Litecoin
Blockchain has no central decision-making body or clear manner in which participants can come to an agreement other than through overwhelming
consensus. The lack of clarity on governance may adversely affect LTC's utility and ability to grow and face challenges, both of
which may require solutions and directed effort to overcome problems, especially long-term problems. To the extent lack of clarity in
corporate governance of the Litecoin Blockchain leads to ineffective decision-making that slows development and growth, the value of the
Shares may be adversely affected.
22
Double-spending risks.
The Litecoin Blockchain is
designed to be resistant to double-spending risks through its consensus algorithm. The consensus protocol ensures that once a transaction
is confirmed by a supermajority of trusted miners, it is immutable and cannot be reversed. This immediate finality is a key defense against
double-spending. Additionally, transactions on the Litecoin Blockchain are atomic, meaning they are either fully executed or not executed
at all. This prevents any partial completion that could lead to inconsistencies or double-spending. Nonetheless, if the consensus mechanism
fails (e.g., due to a significant portion of miners being compromised), conflicting transactions could potentially be validated by different
parts of the network. Additionally,
if a malicious actor or botnet (a volunteer or hacked collection
of computers controlled by networked software coordinating the actions of the computers) obtains a majority of the processing power on
the Litecoin Network, it may be able to alter the Litecoin Blockchain on which transactions in LTC rely by constructing fraudulent blocks
or preventing certain transactions from completing in a timely manner, or at all. The malicious actor or botnet could also control, exclude
or modify the ordering of transactions. Although the malicious actor or botnet may not be able to generate new digital assets or transactions
using such control, it may be able to "double-spend" its own digital assets (i.e., spend the same tokens in more than one
transaction) and prevent the confirmation of other users' transactions for so long as it maintained control. To the extent that
such malicious actor or botnet did not yield its control of the processing power on the Litecoin Network or the LTC community did not
reject the fraudulent blocks as malicious, reversing any changes made to the Litecoin Blockchain may not be possible. Further, a malicious
actor or botnet could create a flood of transactions in order to slow down the Litecoin Network.
Flaws in source code.
In the past,
flaws
in the source code for digital asset networks and related protocols have been exposed and exploited, including flaws that disabled some
functionality for users, exposed users' personal information and/or resulted in the theft of users' digital assets. The cryptography
underlying LTC could prove to be flawed or ineffective, or developments in mathematics and/or technology, including advances in digital
computing, algebraic geometry and quantum computing, could result in such cryptography becoming ineffective. In any of these circumstances,
a malicious actor may be able to take the Trust's LTC, which would adversely affect the value of the Shares. Moreover, functionality
of the Litecoin Network may be negatively affected by such an exploit such that it is no longer attractive to users, thereby dampening
demand for LTC. Even if another digital asset other than LTC were affected by similar circumstances, any reduction in confidence in the
source code or cryptography underlying digital asset networks and related protocols generally could negatively affect the demand for digital
assets and therefore adversely affect the value of the Shares.
Competition from the
emergence or growth of other digital assets or methods of investing in LTC could have a negative impact on the price of LTC and adversely
affect the value of the Shares.
As
of ________, 202_, LTC was the ________ largest digital asset by market capitalization as tracked by CoinMarketCap.com. As of ________,
202_, the digital assets tracked by CoinMarketCap.com, had a total market capitalization of approximately $____ billion (including the
approximately $____ billion market cap of LTC), as calculated using market prices and total available supply of each digital asset, excluding
tokens pegged to other assets. In addition, many consortiums and financial institutions are also researching and investing resources into
private or permissioned blockchain platforms rather than open platforms like the Litecoin Network. Competition from the emergence or growth
of alternative digital assets and smart contracts platforms, such as Ethereum, Solana, Avalanche or Cardano, could have a negative impact
on the demand for, and price of, LTC and thereby adversely affect the value of the Shares.
In
addition, some digital asset networks may be the target of ill will from users of other digital asset networks. For example, Litecoin
is the result of a clone of bitcoin and some users of the bitcoin network may harbor ill will toward the Litecoin Network, and vice versa.
These users may attempt to negatively impact the use or adoption of the Litecoin Network.
Investors
may invest in LTC through means other than the Shares, including through direct investments in LTC and other potential financial vehicles,
possibly including securities backed by or linked to LTC and digital asset financial vehicles similar to the Trust. Market and financial
conditions, and other conditions beyond the Sponsor's control, may make it more attractive to invest in other financial vehicles
or to invest in LTC directly, which could limit the market for, and reduce the liquidity of, the Shares. In addition, to the extent digital
asset financial vehicles other than the Trust tracking the price of LTC are formed and represent a significant proportion of the demand
for LTC, large purchases or redemptions of the securities of these digital asset financial vehicles, or private funds holding LTC, could
negatively affect the Index Price, the NAV, the value of the Shares, the Principal Market NAV and the Principal Market NAV per Share.
Moreover, any reduced demand for Shares of the Trust may cause the Shares of the Trust to trade at a discount to the NAV per Share.
23
Congestion or delay
in the Litecoin Network may delay purchases or sales of LTC by the Trust.
Increased transaction volume
could result in delays in the recording of transactions due to congestion in the Litecoin Network. Moreover, unforeseen system failures,
disruptions in operations, or poor connectivity may also result in delays in the recording of transactions on the Litecoin Network. Any
delay in the Litecoin Network could affect an Authorized Participant's ability to buy or sell LTC at an advantageous price resulting
in decreased confidence in LTC. Over the longer term, delays in confirming transactions could reduce the attractiveness to merchants and
other commercial parties as a means of payment. As a result, LTC and the value of the Trust would be adversely affected.
________ serves as the
Custodian and Broker for several competing exchange-traded LTC products, which could adversely affect the Trust's operations and
ultimately the value of the Shares.
The Prime Broker and the ________
Custodian are both affiliates of ________. As of the date hereof, ________is the largest publicly traded crypto asset company in the world
by market capitalization and is also the largest crypto asset custodian in the world by assets under custody. By virtue of its leading
market position and capabilities, and the relatively limited number of institutionally capable providers of crypto asset brokerage and
custody services, ________serves as the Custodian and broker for several competing exchange-traded LTC products. Therefore, ________has
a critical role in supporting the U.S. spot LTC exchange-traded product ecosystem, and its size and market share create the risk that
________may fail to properly resource its operations to adequately support all such products that use its services that could harm the
Trust, the Shareholders and the value of the Shares. If ________were to favor the interests of certain products over others, it could
result in inadequate attention or comparatively unfavorable commercial terms to less favored products, which could adversely affect the
Trust's operations and ultimately the value of the Shares.
Anonymity and illicit
financing risk.
Although transaction details
of peer-to-peer transactions are recorded on the Litecoin Blockchain, a buyer or seller of digital assets on a peer-to-peer basis directly
on the Litecoin Blockchain may never know to whom the public key belongs or the true identity of the party with whom it is transacting.
Public key addresses are randomized sequences of alphanumeric characters that, standing alone, do not provide sufficient information to
identify users. In addition, certain technologies may obscure the origin or chain of custody of digital assets. The opaque nature of the
market poses asset verification challenges for market participants, regulators and auditors and gives rise to an increased risk of manipulation
and fraud, including the potential for Ponzi schemes, bucket shops and pump-and-dump schemes. Digital assets have in the past been used
to facilitate illicit activities. If a digital asset were used to facilitate illicit activities, businesses that facilitate transactions
in such digital assets could be at increased risk of potential criminal or civil liability or lawsuits, or of having banking or other
services cut off, and such digital asset could be removed from digital asset platforms. Any of the aforementioned occurrences could adversely
affect the price of the relevant digital asset, the attractiveness of the respective blockchain network and an investment in the Shares.
If the Trust or the Sponsor were to transact with a sanctioned entity, the Trust or the Sponsor would be at risk of potential criminal
or civil lawsuits or liability. Transacting with a sanctioned entity could also have a material adverse effect on the Trust or the Sponsor's
financial condition and operational results.
The Trust takes measures with
the objective of reducing illicit financing risks in connection with the Trust's activities. However, illicit financing risks are
present in the digital asset markets, including markets for LTC. There can be no assurance that the measures employed by the Trust will
prove successful in reducing illicit financing risks, and the Trust is subject to the complex illicit financing risks and vulnerabilities
present in the digital asset markets. If such risks eventuate, the Trust or the Sponsor or their affiliates could face civil or criminal
liability, fines, penalties, or other punishments, be subject to investigation, have their assets frozen, lose access to banking services
or services provided by other service providers, or suffer disruptions to their operations, any of which could negatively affect the Trust's
ability to operate or cause losses in value of the Shares.
While the Sponsor and the
Trust are not "financial institutions" within the meaning of the implementing regulations of the Bank Secrecy Act and therefore
not required to implement an AML program, the Sponsor and the Trust will only interact with known third-party service providers with respect
to whom the Sponsor or its affiliates have engaged in a thorough due diligence process and/or a thorough know-your-customer ("KYC")
process, such as the Authorized Participants, LTC Trading Counterparties, Prime Broker and Custodians. The Prime Broker and Custodians
must undergo counterparty due diligence by the Sponsor. Each Authorized Participant must undergo onboarding by the Sponsor prior to placing
creation or redemption orders with respect to the Trust. Each LTC Trading Counterparty who deposits LTC as part of a purchase made by
the Trust in connection with a cash creation or receives LTC from the Trust as part of a sale made by the Trust in connection with a cash
redemption must establish an account and transfer or receive such LTC through such account at the Prime Broker. As a result, the Sponsor
and the Trust have instituted procedures reasonably designed to ensure that a situation would not arise where the Trust would engage in
transactions with a counterparty whose identity the Sponsor and the Trust did not know.
Each Custodian has adopted
and implemented an anti-money laundering and sanctions compliance program, which provides additional protections to ensure that the Sponsor
and the Trust do not transact with a sanctioned party. Notably, each Custodian performs screening using blockchain analytics to identify,
detect, and mitigate the risk of transacting with a sanctioned or other unlawful actor. Pursuant to these blockchain analytics screening
programs, any LTC that is delivered to the Trust's custody account will undergo screening to assess whether the origins of that
LTC are illicit.
24
Furthermore, Authorized Participants,
as broker-dealers, the Prime Broker and ________Custodian, each as an entity licensed to conduct virtual currency business activity by
the New York Department of Financial Services and a limited purpose trust company subject to New York Banking Law, respectively, ________,
as a South Dakota trust company organized and chartered under the South Dakota Banking Law, and ________, as a private limited company
incorporated in Jersey, Channel Islands and regulated by the Jersey Financial Services Commission in the conduct of a fund services business
pursuant to the Financial Services (Jersey) Law 1998, are "financial institutions" subject to the Bank Secrecy Act, and U.S.
economic sanctions laws. The Trust will only accept creation and redemption requests from Authorized Participants and trade with LTC Trading
Counterparties who have represented to the Trust that they have implemented compliance programs that are designed to ensure compliance
with applicable sanctions and AML laws. In addition, with respect to all LTC delivered by LTC Trading Counterparties, the LTC Trading
Counterparties must represent to the Trust that they will form a reasonable belief (i) as to the identities of, and conduct necessary
diligence with respect to, any counterparties from whom such party obtains LTC being transferred and (ii) that such LTC being transferred
by such party to the Trust was not derived from, or associated with, unlawful or criminal activity. The Trust will not hold any LTC except
that which has been delivered by LTC Trading Counterparties or by execution through the Prime Broker, in connection with Authorized Participant
creation requests. Moreover, the Prime Broker has represented to the Trust that it has implemented and will maintain and follow compliance
programs that are designed to comply with applicable sanctions and AML laws and that it performs both initial and ongoing due diligence
on each of its customers as well as ongoing transaction monitoring that is designed to identify and report suspicious activity conducted
through customer accounts, including those opened by the Authorized Participants or their agents/partners for purposes of facilitating
LTC deposits to, and withdrawals from, the Trust's Trading Account, as required by law.
The Prime Broker Agreement
provides, among others, that if the Prime Broker conducts blockchain analytics screening on an LTC transaction deposited by an Authorized
Participant and such screening results in the LTC transaction being suspected or determined to be in violation of certain applicable sanctions
laws, the Prime Broker and its affiliates, including the ________Custodian, will (a) block or reject the deposit of such LTC into the
Trust's Trading Account, where required by applicable sanctions laws, and (b) agree to promptly inform the Trust if any fund movement
between an Authorized Participant's account at the Prime Broker and the Trust's account(s) involves such LTC, so long as permitted
by applicable law.
However, there is no guarantee
that such procedures will always prove to be effective or that the Prime Broker and its affiliates will always perform their obligations.
Such screening may also result in the LTC identified by such screening being blocked or frozen by the Prime Broker, and thus made unavailable
to the Trust. Moreover, the Prime Broker Agreement and ________Custody Agreement require the Trust to attest that it has performed its
own due diligence on the Authorized Participants it has contracted with to source LTC from and has confirmed that the Authorized Participants
and LTC Trading Counterparties, as applicable, have implemented policies, procedures and controls designed to comply with applicable AML
and applicable sanctions laws. Although the Trust arranges for such diligence to be performed, including by the Trust's service
providers, including the Sponsor and its affiliates, there is no guarantee such diligence will prove effective in identifying all possible
sources of illicit financing risks. LTC Trading Counterparties represent to the Trust that they conduct due diligence on their own counterparties
from whom they source the LTC they deposit with the Trust in creation Baskets, and that they have formed a reasonable belief that such
LTC being transferred by the LTC Trading Counterparty to the Trust was not derived from, or associated with, unlawful or criminal activity.
However, there is the risk that LTC Trading Counterparties may not conduct sufficient due diligence processes on the sources of their
LTC or that their representations to the Trust may turn out to be inaccurate, which could cause the Trust to suffer a loss. If the Authorized
Participants or LTC Trading Counterparties have inadequate policies, procedures and controls for complying with applicable AML and applicable
sanctions laws or the Trust's procedures or diligence proves to be ineffective, violations of such laws could result, which could
result in regulatory liability for the Trust or the Sponsor, or their affiliates, under such laws, including governmental fines, penalties,
and other punishments, as well as potential liability to or cessation of services by the Prime Broker and its affiliates, including the
________Custodian, under the Prime Broker Agreement and ________Custody Agreement, the Custodians or the Trust's other service providers
and counterparties. Any of the foregoing could result in losses to the Shareholders or negatively affect the Trust's ability to
operate, and could further negatively affect the price of LTC and the value of the Shares.
Risks Associated with LTC Trading Markets
The Trust is subject
to risks due to its concentration in a single asset: LTC. Any losses suffered as a result of a decrease in the value of LTC or disruption
of the LTC trading markets, generally, can be expected to reduce the value of the Shares and will not be offset by other gains if the
Trust were to invest in other assets.
Unlike certain funds that
may invest in diversified assets, the Trust's investment strategy is concentrated in a single asset: LTC. This concentration maximizes
the degree of the Trust's exposure to a variety of market risks associated with LTC and the LTC trading market. By concentrating
its investment strategy solely in LTC, any losses suffered as a result of a decrease in the value of individual LTC or disruption of the
LTC trading markets, generally, can be expected to reduce the value of the Shares and will not be offset by other gains if the Trust were
to invest in underlying assets that were diversified.
25
The value of the Shares
relates directly to the value of the LTC held by the Trust and fluctuations in the price of LTC could materially and adversely affect
an investment in the Shares.
The investment objective of
the Trust is to provide exposure to the value of the Trust's LTC holdings, less the Trust's liabilities (including estimated
accrued expenses). The price of LTC has fluctuated widely and may continue to experience significant price fluctuations.
Several factors may affect
the price of LTC, including:
●
Global LTC supply, which is estimated at ________ as of ________, 202_;
●
Global LTC demand, which is influenced by such factors as purchases made by speculative investors, acceptance of LTC by online merchants as a payment mechanism, purchases of LTC made by individuals for transactional purposes, and expectations regarding the future value of LTC and the ability to easily buy, sell and use LTC without regulatory interference;
●
Global or regional political, economic or financial events and situations;
●
Investors' expectations with respect to interest rates, the rates of inflation of fiat currencies or LTC, and digital asset and currency exchange rates;
●
The liquidity, solvency, security and withdrawal policies of digital asset trading platforms;
●
Manipulative trading activity on digital asset trading platforms, which, in many cases, are unregulated;
●
Investment and trading activities of hedge funds and other large LTC investors;
●
A "short squeeze" resulting from speculation on the price of LTC, if aggregate short exposure exceeds the number of Shares available for purchase;
●
An active derivatives market for LTC or for digital assets generally;
●
Forks in the Litecoin Blockchain;
●
Monetary policies of governments, trade restrictions, currency devaluations and revaluations, and any restrictions on the use of LTC as a form of payment or the ability to purchase and sell LTC in trading markets;
●
Regulatory measures, if any, that restrict the ability to buy, sell or hold LTC or use LTC as a form of payment;
●
Increased competition from other forms of digital assets or payment services;
●
Transaction costs relating to the acquisition and transfer of LTC; and
●
Global or regional political, economic or financial events and situations.
If LTC markets continue to
be subject to sharp fluctuations, you may experience losses if you need to sell your Shares at a time when the price of LTC is lower than
it was when you made your prior investment. Even if you are able to hold Shares for the long term, your Shares may never generate a profit,
since LTC markets have historically experienced extended periods of flat or declining prices, in addition to sharp fluctuations.
In addition, investors should
be aware that there is no assurance that LTC will maintain its long-term value in terms of future purchasing power. In the event that
the price of LTC declines, the Sponsor expects the value of an investment in the Shares to decline.
The platforms on which
users trade LTC are relatively new and, in some cases, largely unregulated, and, therefore, may be more exposed to fraud and security
breaches than established, regulated exchanges for other financial assets or instruments, which could have a negative impact on the performance
of the Trust.
Over the past several years,
a number of LTC trading platforms have been closed or faced issues due to fraud, failure, security breaches or governmental regulations.
Particularly for operators outside of the United States, LTC trading platforms are not regulated in ways similar to national securities
exchanges and other highly regulated trading environments. As a result, capital requirements, clearing infrastructure and technical and
operational security requirements may vary. The nature of the assets held at LTC trading platforms makes them appealing targets for hackers
and a number of LTC trading platforms have been victims of cybercrimes. In many of these instances, the customers of such LTC trading
platforms were not compensated or made whole for the partial or complete losses of their account balances in such trading platforms. No
LTC trading platform is immune from these risks.
26
While the Trust itself does
not buy or sell LTC on LTC trading platforms, certainty in LTC trading markets may impact the Trust's operation and the value of
the Shares. Negative perception, a lack of stability in the LTC trading markets and the closure or temporary shutdown of digital asset
trading platforms due to fraud, business failure, hackers or malware, or government-mandated regulation may reduce confidence in the Litecoin
Blockchain and result in greater volatility in the prices of LTC. Furthermore, the closure or temporary shutdown of a LTC trading platform
used in calculating the Index may result in a loss of confidence in the Trust's ability to determine its NAV on a daily basis. These
potential consequences of such a LTC trading platform's failure could adversely affect the value of the Shares. Further, the failure
of the LTC market, major LTC trading platforms or any other major component of the overall LTC ecosystem can have a direct adverse effect
on the liquidity and price of LTC and could therefore have a negative impact on the performance of the Trust.
The value of LTC may
be subject to momentum pricing whereby the current LTC price may account for speculation regarding future appreciation in value. Momentum
pricing may result in greater volatility and adversely affect an investment in the Shares.
Momentum pricing typically
is associated with growth stocks and other assets whose valuation, as determined by the investing public, accounts for anticipated future
appreciation in value. The Sponsor believes that momentum pricing of LTC has resulted, and may continue to result, in speculation regarding
future appreciation in the value of LTC, inflating and making more volatile the price of LTC. As a result, LTC may be more likely to fluctuate
in value due to changing investor confidence in future appreciation (or depreciation) in the price of LTC, which could adversely affect
an investment in the Shares.
Risk Factors
Related to the LTC Exchange Market
The value of the Shares
relates directly to the value of the LTC held by the Trust and fluctuations in the price of LTC could materially and adversely affect
an investment in the Shares.
The Shares are designed to
mirror as closely as possible the performance of the price of LTC, as measured by the Index, and the value of the Shares relates directly
to the value of the LTC held by the Trust, less the Trust's liabilities (including estimated accrued but unpaid fees and expenses).
The Index is an independently calculated value based on an aggregation of executed trade flow of major LTC spot exchanges ("LTC
Exchanges" and the general market environment of LTC Exchanges, the "LTC Exchange Market"). Only trades from the selected
LTC Exchanges (the "Selected Exchanges") will be considered in the Index computation. The price of LTC has fluctuated widely
over the past several years and may continue to experience significant price fluctuations. Several factors may affect the LTC Index Price,
including, but not limited to:
●
Total LTC in existence (estimated at approximately ________ as of ________, 202__;
●
Global LTC demand, which is influenced by the growth of retail merchants' and commercial businesses' acceptance of LTC as payment for goods and services, the security of online LTC Exchanges and digital wallets that hold LTC, the perception that the use and holding of LTC is safe and secure, the lack of regulatory restrictions on their use and the reputation of LTC for illicit use;
●
Global LTC supply, which is influenced by similar factors as global LTC demand, in addition to fiat currency needs by miners (for example, to invest in equipment or pay electricity bills) and taxpayers who may liquidate LTC holdings around tax deadlines to meet tax obligations;
●
Investors' expectations with respect to the rate of inflation of fiat currencies;
●
Investors' expectations with respect to the rate of deflation of LTC;
●
Interest rates;
●
Currency exchange rates, including the rates at which LTC may be exchanged for fiat currencies;
●
Fiat currency withdrawal and deposit policies of LTC Exchanges and liquidity of such LTC Exchanges;
●
Interruptions in service from or failures of major LTC Exchanges;
●
Cyber theft of LTC from online LTC wallet providers, or news of such theft from such providers, or from individuals' LTC wallets;
●
Investment and trading activities of large investors, including private and registered funds, that may directly or indirectly invest in LTC;
●
Monetary policies of governments, trade restrictions, currency devaluations and revaluations;
●
Regulatory measures, if any, that restrict the use of LTC as a form of payment or the purchase of LTC on the LTC Exchange Market;
●
The availability and popularity of businesses that provide LTC-related services;
27
●
The maintenance and development of the open-source software protocol of the Litecoin Blockchain;
●
Increased competition from other forms of cryptocurrency or payment services;
●
Global or regional political, economic or financial events and situations;
●
Expectations among LTC economy participants that the value of LTC will soon change; and
●
Fees associated with processing a LTC transaction.
If LTC markets continue to
be subject to sharp fluctuations, you may experience losses if you need to sell your Shares at a time when the price of LTC is lower than
it was when you made your prior investment. Even if you are able to hold Shares for the long term, your Shares may never generate a profit,
since LTC markets have historically experienced extended periods of flat or declining prices, as well as sharp fluctuations.
In addition, investors should
be aware that there is no assurance that LTC will maintain their long-term value in terms of future purchasing power or that the acceptance
of LTC payments by mainstream retail merchants and commercial businesses will continue to grow. In the event that the price of LTC declines,
the Sponsor expects the value of an investment in the Shares to decline proportionately.
Due to the unregulated
nature and lack of transparency surrounding the operations of LTC Exchanges, the marketplace may lose confidence in LTC Exchanges, upon
which the Trust is dependent.
LTC Exchanges are relatively
new and, in some cases, unregulated. Furthermore, while many prominent LTC Exchanges provide the public with significant information regarding
their ownership structure, management teams, corporate practices and regulatory compliance, many LTC Exchanges do not provide this information.
As a result, the marketplace may lose confidence in LTC Exchanges, including prominent exchanges that handle a significant volume of LTC
trading.
For example, in 2019 there
were reports claiming that 80-95% of bitcoin trading volume on digital asset exchanges was false or non-economic in nature, with specific
focus on unregulated exchanges located outside of the United States. Such reports may indicate that the digital asset exchange market
is significantly smaller than expected and that the United States makes up a significantly larger percentage of the digital asset exchange
market than is commonly understood. Nonetheless, any actual or perceived false trading in the digital asset exchange market and the LTC
Exchange Market, and any other fraudulent or manipulative acts and practices, could adversely affect the value of LTC and/or negatively
affect the market perception of LTC.
In addition, over the past
several years, some LTC Exchanges have been closed due to fraud and manipulative activity, business failure or security breaches. In many
of these instances, the customers of such LTC Exchanges were not compensated or made whole for the partial or complete losses of their
account balances in such LTC Exchanges. While smaller LTC Exchanges are less likely to have the infrastructure and capitalization that
make larger LTC Exchanges more stable, larger LTC Exchanges are more likely to be appealing targets for hackers and malware and may be
more likely to be targets of regulatory enforcement action. For example, the collapse of Mt. Gox, which filed for bankruptcy protection
in Japan in late February 2014, demonstrated that even the largest digital asset exchanges could be subject to abrupt failure with consequences
for users of LTC Exchanges and for the LTC industry as a whole. In particular, in the two weeks that followed the February 7, 2014 halt
of bitcoin withdrawals from Mt. Gox, the value of one bitcoin fell on other exchanges from around $795 on February 6, 2014 to $578 on
February 20, 2014.
In January 2015, Bitstamp
announced that approximately 19,000 bitcoin had been stolen from its operational or "hot" wallets. Further, in August 2016,
it was reported that almost 120,000 bitcoin worth around $78 million were stolen from Bitfinex, a large digital asset exchange. The value
of bitcoin immediately decreased over 10% following reports of the theft at Bitfinex. In July 2017, FinCEN assessed a $110 million fine
against BTC-E, a now-defunct digital asset exchange, for facilitating crimes such as drug sales and ransomware attacks. In addition, in
December 2017, Yapian, the operator of Seoul-based cryptocurrency exchange Youbit, suspended digital asset trading and filed for bankruptcy
following a hack that resulted in a loss of 17% of Yapian's assets. Following the hack, Youbit users were allowed to withdraw approximately
75% of the digital assets in their exchange accounts, with any potential further distributions to be made following Yapian's pending
bankruptcy proceedings. In January 2018, the Japanese digital asset exchange Coincheck was hacked, resulting in losses of approximately
$535 million, and in February 2018, the Italian digital asset exchange Bitgrail was hacked, resulting in approximately $170 million in
losses. In May 2019, one of the world's largest digital asset exchanges, Binance, was hacked, resulting in losses of approximately
$40 million. Further, in November 2022, FTX, one of the largest digital asset exchanges by volume at the time, halted customer withdrawals
amid rumors of the company's liquidity issues and likely insolvency, which were subsequently corroborated by its CEO. Shortly thereafter,
FTX's CEO resigned and FTX and many of its affiliates filed for bankruptcy in the United States, while other affiliates have entered
insolvency, liquidation, or similar proceedings around the globe, following which the U.S. Department of Justice brought criminal fraud
and other charges, and the SEC and CFTC brought civil securities and commodities fraud charges, against certain of FTX's and its
affiliates' senior executives, including its former CEO. Around the same time, there were reports that approximately $300-600 million
of digital assets were removed from FTX and the full facts remain unknown, including whether such removal was the result of a hack, theft,
insider activity, or other improper behavior. Various claims and issues related to FTX have not yet been resolved.
28
LTC trading venues that are
regulated typically must comply with minimum net worth, cybersecurity, and AML requirements, but are not typically required to protect
customers to the same extent as regulated securities exchanges or futures exchanges.
Some academics and market
observers have put forth evidence to support claims that manipulative trading activity has occurred on certain digital asset exchange.
For example, in a 2017 paper titled "Price Manipulation in the Bitcoin Ecosystem" sponsored by the Interdisciplinary Cyber
Research Center at Tel Aviv University, a group of researchers used publicly available trading data, as well as leaked transaction data
from a 2014 Mt. Gox security breach, to identify and analyze the impact of "suspicious trading activity" on Mt. Gox between
February and November 2013, which, according to the authors, caused the price of bitcoin to increase from around $150 to more than $1,000
over a two-month period. In August 2017, it was reported that a trader or group of traders nicknamed "Spoofy" was placing
large orders on Bitfinex without actually executing them, presumably in order to influence other investors into buying or selling by creating
a false appearance that greater demand existed in the market. In December 2017, an anonymous blogger (publishing under the pseudonym Bitfinex'd)
cited publicly available trading data to support his or her claim that a trading bot nicknamed "Picasso" was pursuing a paint-the-tape-style
manipulation strategy by buying and selling bitcoin and bitcoin cash between affiliated accounts in order to create the appearance of
substantial trading activity and thereby influence the price of such assets.
Furthermore, many digital
asset exchange lack certain safeguards put in place by exchanges for more traditional assets to enhance the stability of trading on the
exchanges and prevent "flash crashes," such as limit-down circuit breakers. As a result, the prices of LTC on trading venues
may be subject to larger and/or more frequent sudden declines than assets traded on more traditional exchanges. The lack of certain safeguards
also may permit "front-running" (trading by other persons ahead of the Trust with the intention of obtaining better results
than the Trust). Such trading could occur in the event that an individual associated with a trading venue uses information regarding the
Trust's trading activity to the detriment of the Trust. In addition, the lack of trading safeguards may permit "wash trading"
(sales of LTC by the Trust for a loss followed by repurchases of LTC that, under IRS rules, may prevent the Trust from claiming a tax
loss on the sale of LTC).
Operational problems or failures
by LTC trading venues and fluctuations in LTC prices may reduce confidence in these venues or in LTC generally, which could adversely
affect the price of LTC and therefore adversely affect an investment in the Shares.
Negative perception, a lack
of stability in the LTC Exchange Markets and the closure or temporary shutdown of LTC Exchanges due to fraud, business failure, hackers
or malware, or government-mandated regulation may reduce confidence in the Litecoin Blockchain and result in greater volatility in the
prices of LTC. Furthermore, the closure or temporary shutdown of a LTC Exchange used in calculating the LTC Index Price may result in
a loss of confidence in the Trust's ability to determine its LTC Holdings on a daily basis or for the Trust's Authorized Participants
to effectively arbitrage the Trust's Shares. These potential consequences of such a LTC Exchange's failure could adversely
affect the value of the Shares.
Since there is no limit
on the number of LTC that the Trust may acquire, the Trust itself, as it grows, may have an impact on the supply and demand of LTC that
ultimately may affect the price of the Shares in a manner unrelated to other factors affecting the global market for LTC.
The Trust Agreement places
no limit on the number of LTC the Trust may hold. Moreover, the Trust may issue an unlimited number of Shares, subject to registration
requirements, and therefore acquire an unlimited number of LTC in existence at any point in time. The global market for LTC is characterized
by supply and demand constraints that generally are not present in the markets for commodities or other assets such as gold and silver.
The Litecoin Blockchain's mathematical protocols under which LTC are created or "mined" permit the creation of a limited,
predetermined number of LTC not to exceed 84 million. Furthermore, the rate of creation or issuance of LTC cannot be increased ahead of
the protocol's schedule.
If the number of LTC acquired
by the Trust is large enough relative to global LTC supply and demand, further creations and redemptions of Shares could have an impact
on the supply of and demand for LTC in a manner unrelated to other factors affecting the global market for LTC. Such an impact could affect
the LTC Index Price, which would directly affect the price at which Shares are traded on Nasdaq or the price of future Baskets created
or redeemed by the Trust.
29
The Shares may trade
at a discount or premium in the trading price relative to the Trust's LTC Holdings per Share as a result of non-concurrent trading
hours between Nasdaq and the LTC Exchange Market.
The value of a Share may be
influenced by non-concurrent trading hours between Nasdaq and various LTC Exchanges, including those that are included within the Index's
methodology. While Nasdaq is open for trading in the Shares for a limited period each day, the LTC Exchange Market is a 24-hour marketplace;
however, trading volume and liquidity on the LTC Exchange Market are not consistent throughout the day and LTC Exchanges, including the
larger-volume markets, have been known to shut down temporarily or permanently due to security concerns, distributed denial-of-service
("DDoS") attacks and other reasons. As a result, during periods when Nasdaq is open but large LTC Exchanges (or a substantial
number of smaller LTC Exchanges) are either lightly traded or closed, trading spreads and the resulting premium or discount on the Shares
may widen and, therefore, increase the difference between the price of the Shares and the Trust's LTC Holdings per Share. Premiums
or discounts may have an adverse effect on an investment in the Shares if a Shareholder sells or acquires its Shares during a period of
discount or premium, respectively.
If LTC prices on the
LTC Exchange Market move negatively during hours when Nasdaq is closed, trading prices on Nasdaq may "gap" down at market
open.
The value of a Share may be
influenced by non-concurrent trading hours between Nasdaq and various LTC Exchanges, including those that represent components of the
Index. While Nasdaq is open for trading in the Shares for a limited period each day, the LTC Exchange Market is a 24-hour marketplace.
During periods when Nasdaq is closed but LTC Exchanges are open, significant changes in the price of LTC on the Exchange Market could
result in a difference in performance between the value of LTC as measured by the Index and the most recent LTC Holdings per Share or
closing trading price. To the extent that the price of LTC on the Exchange Market and the value of LTC as measured by the Index move significantly
in a negative direction after the close of Nasdaq, the trading price of the Shares may "gap" down to the full extent of such
negative price shift when Nasdaq reopens. To the extent that the price of LTC on the Exchange Market drops significantly during hours
Nasdaq is closed, investors may not be able to sell their Shares until after the "gap" down has been fully realized, resulting
in an inability to mitigate losses in a rapidly negative market.
LTC Exchanges are subject
to the risk of fraud and manipulation.
The LTC market globally and
in the United States is not subject to comparable regulatory guardrails as exist in regulated securities markets. Furthermore, many LTC
trading venues lack certain safeguards put in place by exchanges for more traditional assets to enhance the stability of trading on the
exchanges and prevent "flash crashes," such as limit-down circuit breakers. As a result, the prices of LTC on trading venues
may be subject to larger and/or more frequent sudden declines than assets traded on more traditional exchanges. Tools to detect and deter
fraudulent or manipulative trading activities such as market manipulation, front-running of trades, and wash trading may not be available
to or employed by digital asset trading platforms, or may not exist at all. The SEC has identified possible sources of fraud and manipulation
in the LTC market generally, including, among others (1) wash trading; (2) persons with a dominant position in LTC manipulating LTC pricing;
(3) hacking of the Litecoin Blockchain and trading platforms; (4) malicious control of the Litecoin Blockchain; (5) trading based on material,
non-public information (for example, plans of market participants to significantly increase or decrease their holdings in LTC, new sources
of demand for LTC) or based on the dissemination of false and misleading information; (6) manipulative activity involving purported "stablecoins,"
including Tether, the activities of stablecoin issuers and their regulatory treatment; and (7) fraud and manipulation at LTC trading platforms.
The effect of potential market manipulation, front-running, wash trading, and other fraudulent or manipulative trading practices may inflate
the volumes actually present in the crypto market and/or cause distortions in price, which could adversely affect the Trust or cause losses
to Shareholders.
LTC Exchanges may be
exposed to front-running.
LTC Exchanges on which LTC
trades may be susceptible to "front-running," which refers to the process when someone uses technology or market advantage
to get prior knowledge of upcoming transactions. Front-running is a frequent activity on centralized as well as decentralized exchanges.
By using bots functioning on a millisecond-scale timeframe, bad actors are able to take advantage of the forthcoming price movement and
make economic gains at the cost of those who had introduced these transactions. The objective of a front runner is to buy a chunk of tokens
at a low price and later sell them at a higher price while simultaneously exiting the position. Front-running happens via manipulations
of gas prices or timestamps, also known as slow matching. To the extent that front-running occurs, it may result in investor frustrations
and concerns as to the price integrity of digital asset trading platforms and digital assets more generally.
30
LTC Exchanges may be
exposed to wash trading.
LTC Exchanges on which LTC
trades may be susceptible to wash trading. Wash trading occurs when offsetting trades are entered into for other than bona fide reasons,
such as the desire to inflate reported trading volumes. Wash trading may be motivated by non-economic reasons, such as a desire for increased
visibility on popular websites that monitor markets for digital assets so as to improve their attractiveness to investors who look for
maximum liquidity, or it may be motivated by the ability to attract listing fees from token issuers who seek the most liquid and high-volume
exchanges on which to list their coins. Results of wash trading may include unexpected obstacles to trade and erroneous investment decisions
based on false information.
In the United States, there
have been allegations of wash trading even on regulated venues. Any actual or perceived false trading in the digital asset exchange market,
and any other fraudulent or manipulative acts and practices, could adversely affect the value of LTC and/or negatively affect the market
perception of LTC.
To the extent that wash trading
either occurs or appears to occur in LTC Exchanges on which LTC trades, investors may develop negative perceptions about LTC and the digital
assets industry more broadly, which could adversely impact the price of LTC and, therefore, the price of Shares. Wash trading also may
place more legitimate digital asset trading platforms at a relative competitive disadvantage.
A possible "short
squeeze" due to a sudden increase in demand for the Shares that largely exceeds supply may lead to price volatility in the Shares.
Investors may purchase Shares
to hedge existing LTC or other digital currencies, commodity or currency exposure or to speculate on the price of LTC. Speculation on
the price of LTC may involve long and short exposures. To the extent that aggregate short exposure exceeds the number of Shares available
for purchase (for example, in the event that large redemption requests by Authorized Participants dramatically affect Share liquidity),
investors with short exposure may have to pay a premium to repurchase Shares for delivery to Share lenders. Those repurchases may, in
turn, dramatically increase the price of the Shares until additional Shares are created through the creation process. This is often referred
to as a "short squeeze." A short squeeze could lead to volatile price movements in the Shares that are not directly correlated
to the price of LTC.
Purchasing activity
in the LTC Exchange Market associated with Basket creations or redemptions may affect the LTC Index Price and Share trading prices, adversely
affecting an investment in the Shares.
Purchasing activity associated
with acquiring LTC with proceeds received by the Trust in connection with the creation of Baskets may increase the market price of LTC
on the LTC Exchange Market, which will result in higher prices for the Shares. Increases in the market price of LTC may also occur as
a result of the purchasing activity of other market participants. Other market participants may attempt to benefit from an increase in
the market price of LTC that may result from increased purchasing activity of LTC connected with the issuance of Baskets. Consequently,
the market price of LTC may decline immediately after Baskets are created.
Selling activity associated
with sales of LTC withdrawn from the Trust in connection with the redemption of Baskets may decrease the market price of LTC on the LTC
Exchange Market, which will result in lower prices for the Shares. Decreases in the market price of LTC may also occur as a result of
the selling activity of other market participants. If the LTC Index Price declines, the trading price of the Shares will generally also
decline.
An investment in the
Shares may be adversely affected by competition from other methods of investing in LTC.
The Trust competes with direct
investments in LTC and other potential financial vehicles, possibly including securities backed by or linked to LTC and digital currency
financial vehicles similar to the Trust. Market and financial conditions, and other conditions beyond the Sponsor's control, may
make it more attractive to invest in other financial vehicles or to invest in LTC directly, which could limit the market for the Shares
and reduce the liquidity of the Shares.
The LTC Index Price
may be affected by the sale of other digital currency financial vehicles that invest in and track the price of LTC.
To the extent digital currency
financial vehicles other than the Trust tracking the price of LTC are formed and represent a significant proportion of the demand for
LTC, large redemptions of the securities of these digital currency financial vehicles, or private funds holding LTC, could negatively
affect the LTC Index Price, the Trust's LTC Holdings and the price of the Shares.
31
The impact of geopolitical
or economic events on the supply and demand for LTC is uncertain but could motivate large-scale sales of LTC, which could result in a
reduction in the LTC Index Price and adversely affect an investment in the Shares.
As an alternative to fiat
currencies that are backed by central governments, digital assets such as LTC, which are relatively new, are subject to supply and demand
forces based on the desirability of an alternative, decentralized means of buying and selling goods and services, and it is unclear how
such supply and demand will be impacted by geopolitical events. Nevertheless, political or economic crises may motivate large-scale acquisitions
or sales of LTC either globally or locally. Large-scale sales of LTC would result in a reduction in the LTC Index Price and could adversely
affect an investment in the Shares.
Demand for LTC is driven,
in part, by its status as a prominent and secure digital asset. It is possible that a digital asset other than LTC could have features
that make it more desirable to a material portion of the digital asset user base, resulting in a reduction in demand for LTC, which could
have a negative impact on the price of LTC and adversely affect an investment in the Shares.
As of ________, 202_, LTC
was the ________ largest digital asset by market capitalization as tracked by CoinMarketCap.com. As of ________, 202_, there were over
8,000 alternative digital assets tracked by CoinMarketCap.com, having a total market capitalization of approximately $____ trillion (including
the approximately $____ billion market cap of LTC), as calculated using market prices and total available supply of each digital asset,
excluding tokens pegged to other assets. Many consortiums and financial institutions are also researching and investing resources into
private or permissioned smart contracts platforms rather than open platforms like the Litecoin Blockchain. Competition from the emergence
or growth of alternative digital assets and smart contracts platforms, such as Solana, Avalanche or Cardano, could have a negative impact
on the demand for, and price of, LTC and thereby adversely affect the value of the Shares.
Investors may invest in LTC
through means other than the Shares, including through direct investments in LTC and other potential financial vehicles, possibly including
securities backed by or linked to LTC and digital asset financial vehicles similar to the Trust. Market and financial conditions, and
other conditions beyond the Sponsor's control, may make it more attractive to invest in other financial vehicles or to invest in
LTC directly, which could limit the market for, and reduce the liquidity of, the Shares. In addition, to the extent digital asset financial
vehicles other than the Trust tracking the price of LTC are formed and represent a significant proportion of the demand for LTC, large
purchases or redemptions of the securities of these digital asset financial vehicles, or private funds holding LTC, could negatively affect
the LTC Index Price, the LTC Holdings, the price of the Shares, the NAV and the NAV per Share.
Risk Factors
Related to the Trust and the Shares
As the Sponsor and its
management have no meaningful history of operating an investment vehicle like the Trust, their experience may be inadequate or unsuitable
to manage the Trust.
The Sponsor has no meaningful
history of past performance in managing investment vehicles like the Trust. Affiliates of the Sponsor have operated similar products in
Europe for several years. The past performances of the Sponsor's management in other investment vehicles, including their experiences
in the LTC and private funds industries, are no indication of their ability to manage an investment vehicle such as the Trust. If the
experience of the Sponsor and its management is inadequate or unsuitable to manage an investment vehicle such as the Trust, the operations
of the Trust may be adversely affected.
The value of the Shares
could decrease if unanticipated operational or trading problems arise.
The mechanisms and procedures
governing the creation, redemption and offering of the Shares and storage of the LTC have been developed specifically for this product.
There may be unanticipated problems or issues with respect to the mechanics of the Trust's operations and the trading of the Shares
that could have an adverse effect on an investment in the Shares. In addition, although the Trust is not actively "managed"
by traditional methods, to the extent that unanticipated operational or trading problems or issues arise, the Sponsor's past experience
and qualifications may not be suitable for solving these problems or issues.
The Shares may trade
at a price which that is at, above or below the Trust's LTC Holdings per Share and any discount or premium in the trading price
relative to the Trust's LTC Holdings per Share may widen as a result of non-concurrent trading hours.
The Shares may trade on Nasdaq
at, above or below the Trust's LTC Holdings per Share. The Trust's LTC Holdings per Share will fluctuate with changes in the
market value of the Trust's assets. The trading price of the Shares will fluctuate in accordance with changes in the Trust's
LTC Holdings per Share as well as market supply and demand. The price difference may be due, in large part, to the fact that supply and
demand forces at work in the public trading market for Shares are closely related, but not identical, to the same forces influencing the
LTC Index Price. Consequently, an Authorized Participant may be able to create or redeem a Basket of Shares at a discount or a premium
to the public trading price per Share.
Authorized Participants, or
their clients or customers, may have an opportunity to participate directly in the spot markets and they may profit in these instances
if they can create a Basket at a discount to the public trading price of the Shares or can redeem a Basket at a premium over the public
trading price of the Shares. The Sponsor expects that the exploitation of such arbitrage opportunities by Authorized Participants and
their clients and customers will tend to cause the public trading price to track the LTC Holdings per Share closely over time. Such arbitrage
opportunities will not be available to Shareholders who are not Authorized Participants.
32
The Trust is a passive
investment vehicle. The Trust is not actively managed and will be affected by a general decline in the price of LTC.
The Sponsor does not actively
manage the LTC held by the Trust. This means that the Sponsor does not sell LTC at times when its price is high, or acquire LTC at low
prices in the expectation of future price increases. It also means that the Sponsor does not make use of any of the hedging techniques
available to professional LTC investors to attempt to reduce the risks of losses resulting from price decreases. Any losses sustained
by the Trust will adversely affect the value of the Shares.
If Authorized Participants
are able to purchase or sell large aggregations of LTC in the open market at prices that are different than the LTC Index Price, the arbitrage
mechanism intended to keep the price of the Shares closely linked to the LTC Index Price may not function properly and the Shares may
trade at a discount or premium to the LTC Holdings per Share.
The arbitrage mechanism on
which the Trust relies to keep the price of the Shares closely linked to the LTC Index Price may not function properly if Authorized Participants
are able to purchase or sell large aggregations of LTC in the open market at prices that are materially higher or lower than the LTC Index
Price. Authorized Participants may purchase or sell LTC on public or private markets not included among the LTC Exchanges included in
the Index, and such transactions may take place at prices materially higher or lower than the LTC Index Price. Furthermore, while the
Index provides a reference rate for the price of LTC by identifying the principal exchange of LTC at any given time, the prices on each
individual LTC Exchange are not necessarily equal to the value of a LTC as represented by the Index.
Although the average price
variance between the LTC Index Price and the price of LTC on the LTC Exchanges, both individually and as a group, has historically been
immaterial, the price of LTC on an individual LTC Exchange has historically been, and could in the future be, materially higher or lower
than the LTC Index Price. Under either such circumstance, the arbitrage mechanism will function to link the price of the Shares to the
prices at which Authorized Participants are able to purchase or sell large aggregations of LTC. To the extent such prices differ materially
from the LTC Index Price, the price of the Shares may no longer track, whether temporarily or over time, the LTC Index Price, which could
adversely affect an investment in the Trust by reducing investors' confidence in the Shares' ability to track the market price
of LTC and the LTC Index Price.
Arbitrage transactions
intended to keep the price of Shares closely linked to the price of LTC may be problematic if the process for the purchase and redemption
of Baskets encounters difficulties, which may adversely affect an investment in the Shares.
If the processes of creation
and redemption of Shares (which depend on timely transfers of LTC to and by the Custodians) encounter any unanticipated difficulties due
to, for example, the price volatility of LTC, the insolvency, business failure or interruption, default, failure to perform, security
breach, or other problems affecting the Prime Broker or Custodians, the operational issues that may arise from the initial implementation
of an all-cash trade model to accommodate the change from the originally contemplated in-kind creations and redemptions to cash creations
and redemptions, the closing of LTC trading platforms due to fraud, failures, security breaches or otherwise, or network outages or congestion,
spikes in transaction fees demanded by miners, or other problems or disruptions affecting the Litecoin Blockchain, then potential market
participants, such as the Authorized Participants and their customers, who would otherwise be willing to purchase or redeem Baskets to
take advantage of any arbitrage opportunity arising from discrepancies between the price of the Shares and the price of the underlying
LTC may not take the risk that, as a result of those difficulties, they may not be able to realize the profit they expect. Alternatively,
in the case of a network outage or other problems affecting the Litecoin Blockchain, the processing of transactions on the Litecoin Blockchain
may be disrupted, which in turn may prevent LTC Trading Counterparties from depositing or withdrawing LTC from their accounts, which in
turn could affect the creation or redemption of Baskets. If this is the case, the liquidity of the Shares may decline and the price of
the Shares may fluctuate independently of the price of LTC and may fall or otherwise diverge from NAV. Furthermore, in the event that
the market for LTC should become relatively illiquid and thereby materially restrict opportunities for arbitraging by delivering LTC in
return for Baskets, the price of Shares may diverge from the value of LTC.
33
The use of cash creations
and redemptions, as opposed to in-kind creations and redemptions, may adversely affect the arbitrage transactions by Authorized Participants
intended to keep the price of the Shares closely linked to the price of LTC and, as a result, the price of the Shares may fall or otherwise
diverge from NAV.
The use of cash creations
and redemptions, as opposed to in-kind creations and redemptions, could cause delays in trade execution due to potential operational issues
arising from implementing a cash creation and redemption model, which involves greater operational steps (and therefore execution risk)
than the originally contemplated in-kind creation and redemption model, or the potential unavailability or exhaustion of the Trade Credits,
which the Trust would not be able to use in connection with in-kind creations and redemptions. Such delays could cause the execution price
associated with such trades to materially deviate from the Index price used to determine the NAV. Even though the Authorized Participant
is responsible for the dollar cost of such difference in prices, Authorized Participants could default on their obligations to the Trust,
or such potential risks and costs could lead to Authorized Participants, who would otherwise be willing to purchase or redeem Baskets
to take advantage of any arbitrage opportunity arising from discrepancies between the price of the Shares and the price of the underlying
LTC, to elect to not participate in the Trust's Share creation and redemption processes. This may adversely affect the arbitrage
mechanism intended to keep the price of the Shares closely linked to the price of LTC and, as a result, the price of the Shares may fall
or otherwise diverge from NAV. If the arbitrage mechanism is not effective, purchases or sales of Shares on the secondary market could
occur at a premium or discount to NAV, which could harm Shareholders by causing them to buy Shares at a price higher than the value of
the underlying LTC held by the Trust or to sell Shares at a price lower than the value of the underlying LTC held by the Trust, causing
Shareholders to suffer losses.
The inability of Authorized
Participants and market makers to hedge their LTC exposure may adversely affect the liquidity of Shares and the value of an investment
in the Shares.
Authorized Participants and
market makers will generally want to hedge their exposure in connection with Basket creation and redemption orders. To the extent Authorized
Participants and market makers are unable to hedge their exposure due to market conditions (e.g., insufficient LTC liquidity in the market,
inability to locate an appropriate hedge counterparty, extreme volatility in the price of LTC, wide spreads between prices quoted on different
LTC trading platforms, etc.), such conditions may make it difficult to create or redeem Baskets or cause them not to create or redeem
Baskets. In addition, the hedging mechanisms employed by Authorized Participants and market makers to hedge their exposure to LTC may
not function as intended, which may make it more difficult for them to enter into such transactions. Such events could negatively impact
the market price of Shares and the spread at which Shares trade on the open market. To the extent Authorized Participants wish to use
futures to hedge their exposure, note that while growing in recent years, the market for exchange-traded LTC futures has a limited trading
history and operational experience and may be less liquid, more volatile and more vulnerable to economic, market and industry changes
than more established futures markets. The liquidity of the market will depend on, among other things, the adoption of LTC and the commercial
and speculative interest in the market.
The Authorized Participants
serve in such capacity for several competing exchange-traded LTC products, which could adversely affect the market for the Shares.
Only an Authorized Participant
may engage in creation or redemption transactions directly with the Trust. Some or all of the Trust's Authorized Participants are
expected to serve as authorized participants or market makers for one or more exchange-traded LTC products that compete with the Trust.
This may make it more difficult to engage or retain Authorized Participants for the Trust. Furthermore, because there is no obligation
on the part of the Authorized Participants to engage in creation and redemption or market making activities with respect to the Trust's
Shares, decisions by the Authorized Participants to not engage with the Trust or its Shares may result in a decline in the liquidity of
the Shares and the price of the Shares may fluctuate independently of the price of Trust's LTC (i.e., at a greater premium or discount
to the Trust's NAV).
The postponement, suspension
or rejection of creation or redemption orders may adversely affect an investment in the Shares.
Under the Trust Agreement,
the Sponsor may suspend or reject creation or redemption orders, as applicable, for a variety of permitted reasons under certain circumstances.
To the extent such orders are suspended or rejected, the arbitrage mechanism resulting from the process through which Authorized Participants
create and redeem Shares directly with the Trust may fail to closely link the price of the Shares to the value of the underlying LTC,
as measured using the LTC Index Price. If this is the case, the liquidity of the Shares may decline and the price of the Shares may fluctuate
independently of the LTC Index Price and may fall.
Furthermore, the placement
of in-cash creation and redemption orders requires additional administrative steps as compared to in-kind creation and redemption orders,
which could hinder arbitrage opportunities for in-cash creation and redemption orders. The Sponsor, Administrator or Marketing Agent's
failure to quickly execute such administrative steps could cause a delay in the execution of an Authorized Participant's order,
which could hinder an Authorized Participant's ability to arbitrage the difference between the LTC Index Price and the price of
the Shares, thereby impacting an Authorized Participant's ability to keep the price of the Shares closely linked to the LTC Index
Price. See "Description of Creation and Redemption of Shares."
34
The Trust could experience
unforeseen difficulties in operating and maintaining key elements of its technical infrastructure.
The LTC Account has been designed
specifically to provide security for the Trust's assets and may be expanded, updated and altered from time to time. Any effort to
expand, update or alter the security system is likely to be complex, and unanticipated delays in the completion of these projects may
lead to unanticipated project costs, operational inefficiencies or vulnerabilities to security breaches. In addition, there may be problems
with the design or implementation of the LTC Account or with an expansion or upgrade thereto that are not evident during the testing phases
of design and implementation, and that may only become apparent after the Trust has utilized the infrastructure. Any issues relating to
the performance and effectiveness of the security procedures used by the Trust and the Custodians to protect the LTC Account, such as
algorithms, codes, passwords, multiple signature systems, encryption and telephone call-backs (together, the "Security Procedures"),
may have an adverse impact on an investment in the Shares.
The Security Procedures implemented
by the Custodians are technical and complex, and the Trust depends on the Security Procedures to protect the storage, acceptance and distribution
of data relating to LTC and the digital wallets into which the Trust deposits its LTC. The Security Procedures may not protect against
all errors, software flaws (i.e., bugs) or vulnerabilities. Defects in the Security Procedures may only be discovered after a failure
in a Custodian's safekeeping and storage of the Trust's LTC.
It is not uncommon for businesses
in the digital asset space to experience large losses due to fraud and breaches of their security systems. For example, in September 2015,
the global bitcoin payment agent BitPay lost approximately $1.8 million of bitcoin due to a hacker's fraudulent impersonation of
BitPay's CFO, whereby the hacker was able to access the CFO's email account and successfully request BitPay's custodian
to transfer funds.
Furthermore, the Trust's
private keys required to transfer the Trust's LTC are stored in vaults located across the world, including but not limited to the
United States, Europe, including Switzerland, and South America, which could be subject to (i) hostile regulatory treatment of LTC, (ii)
unforeseen social, economic or political unrest and (iii) natural or man-made disaster. For example, one of the Custodian's vaults
is located in a South American country that could be considered to have an elevated risk of hostile regulatory treatment and social, economic
or political unrest, including high rates of inflation and general economic mismanagement. If a vault were compromised, it could cause
a possible delay in operations of up to 72 hours, which could have a negative impact on the value of the Shares.
The Trust's and
the Custodians' ability to adopt technology in response to changing security needs or trends poses a challenge to the safekeeping
of the Trust's LTC.
LTC Exchanges and large holders
of LTC must adapt to technological change in order to secure and safeguard client accounts. While the Sponsor believes the Security Procedures
in place have been reasonably designed to safeguard the Trust's LTC from theft, loss, destruction or other issues relating to hackers
and technological attack, such assessment is based on known technology and threats. As technological change occurs, the security threats
to the Trust's LTC will likely adapt and previously unknown threats may emerge. Furthermore, the Sponsor believes that the Trust
may become a more appealing target of security threats as the size of the Trust's assets grows. To the extent that the Trust or
the Custodians are unable to identify and mitigate or stop new security threats, the Trust's LTC may be subject to theft, loss,
destruction or other attack, which could have a negative impact on the performance of the Shares or result in loss of the Trust's
assets.
Security threats to
the LTC Account could result in the halting of Trust operations, the suspension of redemptions, and a loss of Trust assets or damage to
the reputation of the Trust, each of which could result in a reduction in the price of the Shares.
Security breaches, computer
malware and computer hacking attacks have been a prevalent concern in the LTC Exchange Market since the launch of the Litecoin Blockchain.
Any security breach caused by hacking, which involves efforts to gain unauthorized access to information or systems, or to cause intentional
malfunctions or loss or corruption of data, software, hardware or other computer equipment, and the inadvertent transmission of computer
viruses, could harm the Trust's business operations or result in loss of the Trust's assets. Any breach of the Trust's
infrastructure could result in damage to the Trust's reputation and reduce demand for the Shares, resulting in a reduction in the
price of the Shares. Furthermore, the Sponsor believes that, as the Trust's assets grow, it may become a more appealing target for
security threats such as hackers and malware.
The Sponsor believes that
the Security Procedures that the Sponsor and Custodians utilize are reasonably designed to safeguard the Trust's LTC from theft,
loss, destruction or other issues relating to hackers and technological attack. Nevertheless, the Security Procedures cannot guarantee
the prevention of any loss due to a security breach, software defect or act of God that may be borne by the Trust, absent gross negligence,
willful misconduct or bad faith on the part of the Sponsor, the Custodians or their agents.
35
The Security Procedures and
operational infrastructure may be breached due to the actions of outside parties, error or malfeasance of an employee of the Sponsor or
the Custodians, or otherwise, and, as a result, an unauthorized party may obtain access to the LTC Account, private keys, data or LTC.
Additionally, outside parties may attempt to fraudulently induce employees of the Custodians or the Sponsor to disclose sensitive information
in order to gain access to the Trust's infrastructure. As the techniques used to obtain unauthorized access, disable or degrade
service, or sabotage systems change frequently, or may be designed to remain dormant until a predetermined event and often are not recognized
until launched against a target, the Sponsor may be unable to anticipate these techniques or implement adequate preventative measures.
If an actual or perceived breach of the LTC Account occurs, the market perception of the effectiveness of the Trust could be harmed, which
could result in a reduction in the price of the Shares.
In the event of a security
breach of the LTC Account, the Trust may cease operations, suspend redemptions or suffer a reduction in assets, the occurrence of each
of which could result in a reduction in the price of the Shares.
A loss of confidence
or breach in the Trust's security and technology policies may adversely affect the Trust and the value of an investment in the Shares.
The Trust, Sponsor, Custodians
and each of their agents will take measures to protect the Trust and its LTC from unauthorized access, damage or theft. However, it is
possible that the Security Procedures in place may not prevent improper access to, or damage or theft of the Trust's LTC. A security
breach could harm the Trust's reputation or result in the loss of some or all of the Trust's LTC, which represent the Trust's
only asset. A resulting perception that the Security Procedures do not adequately protect the Trust's LTC could result in a loss
of current or potential Shareholders, reducing demand for, and price of, the Shares.
LTC transactions are
irrevocable and stolen or incorrectly transferred LTC may be irretrievable. As a result, any incorrectly executed LTC transactions could
adversely affect an investment in the Shares.
LTC transactions are not reversible
without the consent and active participation of the recipient of the transaction. Once a transaction has been verified and recorded in
a block that is added to the Litecoin Blockchain, an incorrect transfer of LTC or a theft of LTC generally will not be reversible and
the Trust may not be capable of seeking compensation for any such transfer or theft. Although the Trust's transfers of LTC will
regularly be made to or from the LTC Account, it is possible that, through computer or human error, or through theft or criminal action,
the Trust's LTC could be transferred from the Prime Broker or the Custodians in incorrect amounts or to unauthorized third parties,
or to uncontrolled accounts.
For example, in September
2014, the Chinese digital asset exchange Huobi announced that it had sent approximately 900 bitcoin and 8,000 LTC (worth approximately
$400,000 at the prevailing market prices at the time) to the wrong customers, although it claimed that many customers returned the bitcoin
and LTC. To the extent that the Trust is unable to seek a corrective transaction with such third party or is incapable of identifying
the third party that has received the Trust's LTC through error or theft, the Trust will be unable to revert or otherwise recover
incorrectly transferred Trust LTC. The Trust will also be unable to convert or recover Trust LTC transferred to uncontrolled accounts.
To the extent that the Trust is unable to seek redress for such error or theft, such loss could adversely affect an investment in the
Shares.
The Trust's LTC
may be subject to loss, damage, theft or restriction on access.
There is a risk that some
or all of the Trust's LTC could be lost, stolen or destroyed. The Sponsor believes that the Trust's LTC held in the LTC Account
will be an appealing target to hackers or malware distributors seeking to destroy, damage or steal the Trust's LTC. Although the
Custodians use Security Procedures with various elements, neither the Custodians nor the Sponsor can guarantee the prevention of such
loss, damage or theft, whether caused intentionally, accidentally or by an act of God. Access to the Trust's LTC could also be restricted
by natural events (such as an earthquake or flood) or human actions (such as a terrorist attack). Any of these events may adversely affect
the operations of the Trust and, consequently, an investment in the Shares.
Shareholders'
limited rights of legal recourse against the Trust, Trustee, Sponsor, Administrator, Transfer Agent, Cash Custodian, Prime Broker and
Custodians and the Trust's lack of direct insurance protection expose the Trust and its Shareholders to the risk of loss of the
Trust's LTC for which no person is liable.
The Trust is not a banking
institution and is not a member of the FDIC or Securities Investor Protection Corporation ("SIPC") and, therefore, investments
in the Trust are not subject to the protections enjoyed by depositors with FDIC or SIPC member institutions. Likewise, the Custodians
are not depository institutions and are not members of the FDIC or SIPC and, therefore, the Trust's assets held with the Custodians
are not subject to FDIC or SIPC insurance coverage. In addition, neither the Trust nor the Sponsor insure the Trust's LTC.
36
While the ________ Custodian
and ________have advised the Sponsor that it has insurance coverage, up to $320 million in the case of the ________Custodian, $250 million
in the case of ________and $50 million in the case of ________, that covers losses of the digital assets it custodies on behalf of its
clients, including the Trust's LTC, resulting from theft, Shareholders cannot be assured that the Custodians will maintain adequate
insurance, that such coverage will cover losses with respect to the Trust's LTC, or that sufficient insurance proceeds will be available
to cover the Trust's losses in full. The Custodians' insurance may not cover the type of losses experienced by the Trust.
Alternatively, the Trust may be forced to share such insurance proceeds with other clients or customers of such Custodian, which could
reduce the amount of such proceeds that are available to the Trust. In addition, the LTC insurance market is limited, and the level of
insurance maintained by a Custodian may be substantially lower than the assets of the Trust held by such Custodian. While the Custodians
maintain certain capital reserve requirements depending on the assets under custody, and such capital reserves may provide additional
means to cover client asset losses, the Trust cannot be assured that the Custodians will maintain capital reserves sufficient to cover
actual or potential losses with respect to the Trust's digital assets.
Furthermore, under each of
the Custody Agreements, the respective Custodian's liability is limited. With respect to the ________Custody Agreement, ________Custody's
liability is limited as follows, among others: (i) other than with respect to claims and losses arising from spot trading of LTC, or fraud
or willful misconduct, the Mutually Capped Liabilities (defined below), the ________Custodian's aggregate liability under the ________Custody
Agreement shall not exceed the greater of (A) the greater of (x) $5 million and (y) the aggregate fees paid by the Trust to the ________
Custodian in the 12 months prior to the event giving rise to the Custodian's liability, and (B) the value of the affected LTC or
cash giving rise to the ________Custodian's liability; (ii) the ________Custodian's aggregate liability in respect of each
cold storage address shall not exceed $100 million; (iii) in respect of the ________ Custodian's obligations to indemnify the Trust
and its affiliates against third-party claims and losses to the extent arising out of or relating to, among others, the ________Custodian's
gross negligence, violation of its confidentiality, data protection and/or information security obligations, or violation of any law,
rule or regulation with respect to the provision of its services (the "Mutually Capped Liabilities"), the ________Custodian's
liability shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the ________Custodian in the
12 months prior to the event giving rise to the ________Custodian's liability; and (iv) in respect of any incidental, indirect,
special, punitive, consequential or similar losses, the ________Custodian is not liable, even if the ________Custodian has been advised
of or knew or should have known of the possibility thereof. In general, the ________ Custodian is not liable under the ________Custody
Agreement unless in the event of its negligence, fraud, material violation of applicable law or willful misconduct. The ________Custodian
is not liable for delays, suspension of operations, failure in performance, or interruption of service to the extent it is directly due
to a cause or condition beyond the reasonable control of the ________Custodian. In the event of potential losses incurred by the Trust
as a result of the ________Custodian losing control of the Trust's LTC or failing to properly execute instructions on behalf of
the Trust, the ________Custodian's liability with respect to the Trust will be subject to certain limitations which may allow it
to avoid liability for potential losses or may be insufficient to cover the value of such potential losses, even if the ________Custodian
directly caused such losses. Furthermore, the insurance maintained by the ________Custodian may be insufficient to cover its liabilities
to the Trust.
With respect to the ________Custody
Agreement, ________and its affiliates, including their officers, directors, agents, and employees, are not liable for any lost profits,
special, incidental, indirect, intangible, or consequential damages resulting from authorized or unauthorized use of the Trust or Sponsor's
site or services. This includes damages arising from any contract, tort, negligence, strict liability, or other legal grounds, even if
________was previously advised of, knew, or should have known about the possibility of such damages. However, this exclusion of liability
does not extend to cases of ________'s fraud, willful misconduct, or gross negligence. In situations of gross negligence, ________'s
liability is specifically limited to the value of the digital assets or fiat currency that were affected by the negligence. Additionally,
the total liability of ________for direct damages is capped at the fees paid or payable to them under the relevant agreement during the
three-month period immediately preceding the first incident that caused the liability.
37
In general, ________'s
(and its affiliates') liability arising out of or relating to the ________Custody Agreement will be limited to those damages that
are caused directly by ________'s failure to exercise such care and skill to be reasonably expected of a professional custodian
for hire of assets of the same type as the Trust's assets, acting without gross negligence, willful default or fraud. More particularly,
________'s liability is limited by the following, among others: (i) in no event shall ________ (or its affiliates) be liable for
any reduction in the value of the Trust's assets; (ii) in no event shall ________ (or its affiliates) be liable for any losses suffered
or incurred due to an event (or series of connected events) which could reasonably be considered to be outside of ________'s control;
(iii) in no event shall ________ (or its affiliates) be liable for any indirect or consequential loss, loss of profits, contract, revenue,
cost, opportunity, anticipated savings, business and/or goodwill, in each case, arising out of or in connection with the ________Custody
Agreement, even if that loss or damage was reasonably foreseeable or ________ (or its affiliates) was aware of the possibility of that
loss or damage arising. To the extent that ________ (or its affiliates) is liable in accordance with the terms of the ________Custody
Agreement, ________'s (or its affiliates') liability to the Trust in the case of Theft (a "Theft" is defined in
the ________Custody Agreement as unauthorized access to ________'s systems by a third party resulting in a reduction of the amount
of the Trust's assets held by ________on behalf of the Trust) shall be limited to the higher of the service fees (paid and/or payable)
by the Trust to ________under the ________Custody Agreement during the twenty-four (24) month period immediately preceding the Theft,
or the actual amount received by ________under its insurance policies maintained, if any, for the Theft. Other than in the case of Theft,
to the extent that ________ (or its affiliates) is liable given the limitation and exclusions outlined in the ________Custody Agreement,
________ (or its affiliates) shall not be liable to the Trust (whether arising in contract, tort (including negligence), breach of statutory
duty or otherwise) for any sum which would result in ________'s (or its affiliates) total liability under the ________Custody Agreement
to exceed the service fees paid or payable by the Trust to ________ under the agreement during the twelve (12) month period immediately
preceding the event (or series of connected events) giving rise to the liability.
Similarly, under the Prime
Broker Agreement, the Prime Broker's liability is limited as follows, among others: (i) other than with respect to claims and losses
arising from spot trading of LTC, or fraud or willful misconduct, or the PB Mutually Capped Liabilities (defined below), the Prime Broker's
aggregate liability shall not exceed the greater of (A) the greater of (x) $5 million and (y) the aggregate fees paid by the Trust to
the Prime Broker in the 12 months prior to the event giving rise to the Prime Broker's liability, and (B) the value of the cash
or affected LTC giving rise to the Prime Broker's liability; (ii) in respect of the Prime Broker's obligations to indemnify
the Trust and its affiliates against third-party claims and losses to the extent arising out of or relating to, among others, the Prime
Broker's gross negligence, violation of its confidentiality, data protection and/or information security obligations, violation
of any law, rule or regulation with respect to the provision of its services, or the full amount of the Trust's assets lost due
to the insolvency of or security event at a Connected Trading Venue (as defined below) (the "PB Mutually Capped Liabilities"),
the Prime Broker's liability shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the
Prime Broker in the 12 months prior to the event giving rise to the Prime Broker's liability; and (iii) in respect of any incidental,
indirect, special, punitive, consequential or similar losses, the Prime Broker is not liable, even if the Prime Broker has been advised
of or knew or should have known of the possibility thereof. In general, with limited exceptions (such as for failing to execute an order),
the Prime Broker is not liable under the Prime Broker Agreement unless in the event of its gross negligence, fraud, material violation
of applicable law or willful misconduct. The Prime Broker is not liable for delays, suspension of operations, failure in performance,
or interruption of service to the extent it is directly due to a cause or condition beyond the reasonable control of the Prime Broker.
These and the other limitations on the Prime Broker's liability may allow it to avoid liability for potential losses or may be insufficient
to cover the value of such potential losses, even if the Prime Broker directly caused such losses. Both the Trust and the Prime Broker
and its affiliates (including the ________ Custodian) are required to indemnify each other under certain circumstances.
Moreover, in the event of
an insolvency or bankruptcy of the Prime Broker (in the case of the Trading Account) or the Custodians (in the case of the Vault Accounts)
in the future, given that the contractual protections and legal rights of customers with respect to digital assets held on their behalf
by third parties are relatively untested in the bankruptcy of an entity such as the Custodian or Prime Broker in the virtual currency
industry, there is a risk that customers' assets – including the Trust's assets – may be considered the property
of the bankruptcy estate of the Prime Broker (in the case of the Trading Account) or the Custodians (in the case of the Vault Accounts),
and customers – including the Trust – may be at risk of being treated as general unsecured creditors of such entities and
subject to the risk of total loss or markdowns on the value of such assets.
38
The ________ Custody Agreement
contains an agreement by the parties to treat the LTC credited to the Vault Account at the ________ Custodian as financial assets under
Article 8 of the New York Uniform Commercial Code ("Article 8"), in addition to stating that the ________ Custodian will serve
as fiduciary and custodian on the Trust's behalf. The ________ Custodian's parent, ________, has stated in its most recent
public securities filings that in light of the inclusion in its custody agreements of provisions relating to Article 8 it believes that
a court would not treat custodied digital assets as part of its general estate in the event the ________ Custodian were to experience
insolvency. However, due to the novelty of digital asset custodial arrangements courts have not yet considered this type of treatment
for custodied digital assets and it is not possible to predict with certainty how they would rule in such a scenario. If either Custodian
became subject to insolvency proceedings and a court were to rule that the custodied LTC was part of such Custodian's general estate
and not the property of the Trust, then the Trust would be treated as a general unsecured creditor in the respective Custodian's
insolvency proceedings and the Trust could be subject to the loss of all or a significant portion of its assets. Moreover, in the event
of the bankruptcy of a Custodian, an automatic stay could go into effect and protracted litigation could be required in order to recover
the assets held with such Custodian, all of which could significantly and negatively impact the Trust's operations and the value
of the Shares.
With respect to the Prime
Broker Agreement, there is a risk that the Trading Account, in which the Trust's LTC and cash are held in omnibus accounts by the
Prime Broker (in the latter case, as described below in "—Loss of a critical banking relationship for, or the failure of a
bank used by, the Prime Broker could adversely impact the Trust's ability to create or redeem Baskets, or could cause losses to
the Trust"), could be considered part of the Prime Broker's bankruptcy estate in the event of the Prime Broker's bankruptcy.
The Prime Broker Agreement contains an Article 8 opt-in clause with respect to the Trust's assets held in the Trading Account.
The Prime Broker is not required
to hold any of the LTC or cash in the Trust's Trading Account in segregation. Within the Trading Account, the Prime Broker Agreement
provides that the Trust does not have an identifiable claim to any particular LTC (and cash). Instead, the Trust's Trading Account
represents an entitlement to a
pro rata
share of the LTC (and cash) the Prime Broker has allocated to the omnibus wallets the Prime
Broker holds, as well as the accounts in the Prime Broker's name that the Prime Broker maintains at Connected Trading Venues (the
"Connected Trading Venue") (which are typically held on an omnibus, rather than segregated, basis). If the Prime Broker suffers
an insolvency event, there is a risk that the Trust's assets held in the Trading Account could be considered part of the Prime Broker's
bankruptcy estate and the Trust could be treated as a general unsecured creditor of the Prime Broker, which could result in losses for
the Trust and Shareholders. Moreover, in the event of the bankruptcy of the Prime Broker, an automatic stay could go into effect and protracted
litigation could be required in order to recover the assets held with the Prime Broker, all of which could significantly and negatively
impact the Trust's operations and the value of the Shares.
Under the Trust Agreement,
the Sponsor will not be liable for any liability or expense incurred, including, without limitation, as a result of any loss of LTC by
the Custodians or Prime Broker, absent fraud, gross negligence, bad faith or willful misconduct on the part of the Sponsor. As a result,
the recourse of the Trust or the Shareholders to the Sponsor, including in the event of a loss of LTC by the Custodians or Prime Broker,
is limited.
The Shareholders' recourse
against the Sponsor and the Trust's other service providers for the services they provide to the Trust, including, without limitation,
those relating to the holding of LTC or the provision of instructions relating to the movement of LTC, is limited. For the avoidance of
doubt, neither the Sponsor, the Trustee, any of their affiliates, nor any other party has guaranteed the assets or liabilities, or otherwise
assumed the liabilities, of the Trust, or the obligations or liabilities of any service provider to the Trust, including, without limitation,
the Custodians and Prime Broker. In particular, the Prime Broker Agreement and ________ Custody Agreement provide that neither the Sponsor
nor its affiliates shall have any obligation of any kind or nature whatsoever, by guaranty, enforcement or otherwise, with respect to
the performance of any of the Trust's obligations, agreements, representations or warranties under the Prime Broker Agreement or
________ Custody Agreement or any transaction thereunder. Consequently, a loss may be suffered with respect to the Trust's LTC that
is not covered by a Custodian's insurance and for which no person is liable in damages. As a result, the recourse of the Trust or
the Shareholders, under applicable law, is limited.
39
If the Trade Credits
are not available or become exhausted, the Trust may face delays in buying or selling LTC that may adversely impact Shareholders; if the
Trust does not repay the Trade Credits on time, its assets may be liquidated by the Trade Credit Lender and its affiliates.
To avoid having to pre-fund
purchases or sales of LTC in connection with cash creations and redemptions and sales of LTC to pay the Sponsor's Fee and any other
Trust expenses not assumed by the Sponsor, to the extent applicable, the Trust may borrow LTC or cash as trade credit ("Trade Credit")
from ________ (the "Trade Credit Lender") on a short-term basis pursuant to the ________ Post-Trade Financing Agreement (the
"Trade Financing Agreement"). The Trade Credit Lender is only required to extend Trade Credits to the Trust to the extent
such LTC or cash is actually available to the Trade Credit Lender. To the extent that Trade Credits are not available or become exhausted,
(1) there may be delays in the buying and selling of LTC related to cash creations and redemptions or the selling of LTC related to paying
the Sponsor's Fee and any other Trust expenses, to the extent applicable, (2) Trust assets may be in held the Trading Account for
a longer duration than if Trade Credits were available, and (3) the execution price associated with such trades may deviate significantly
from the Index price used to determine the net asset value of the Trust. To the extent that the execution price for purchases and sales
of LTC related to creations and redemptions and sales of LTC in connection with paying the Sponsor's Fee and any other Trust expenses
deviate significantly from the Index price used to determine the net asset value of the Trust, the Shareholders may be negatively impacted
because the added costs of such price deviations would be incurred by the Authorized Participants and may be passed onto the Shareholders
in the secondary market.
The Trust generally must repay
Trade Credits by 6:00 p.m. ET (the "Settlement Deadline") on the calendar day immediately following the day the Trade Credit
was extended by the Trade Credit Lender to the Trust (or, if such day is not a business day, on the next business day). Pursuant to the
Trade Financing Agreement, the Trust has granted a security interest, lien on, and right of set-off against all of the Trust's right,
title and interest, in the Trust's Trading Account and Vault Account established pursuant to the Prime Broker Agreement and ________
Custody Agreement, in order to secure the repayment by the Trust of the Trade Credits and financing fees to the Trade Credit Lender. If
the Trust fails to repay the Trade Credits to the Trade Credit Lender on time and in full, the Trade Credit Lender can take control of
the Trust's assets held at the ________ Custodian or Prime Broker and liquidate them to repay the Trade Credit debt owed by the
Trust to the Trade Credit Lender.
Loss of a critical banking
relationship for, or the failure of a bank used by, the Prime Broker could adversely impact the Trust's ability to create or redeem
Baskets, or could cause losses to the Trust.
The Prime Broker may be used
to facilitate the buying and selling or settlement of LTC by the Trust in connection with cash creations and redemptions between the Trust
and the Authorized Participants and the sale of LTC to pay Trust expenses not assumed by the Sponsor. The Prime Broker relies on bank
accounts to provide its trading platform services and including temporarily holding any cash related to a customer's purchase or
sale of LTC. In particular, the Prime Broker has disclosed that customer cash held by the Prime Broker, including the cash associated
with the Trust's Trading Account, is held in one or more banks' accounts for the benefit of the Prime Broker's customers,
or in money market funds in compliance with Rule 2a-7 under the Investment Company Act of 1940 and rated "AAA" by S&P
(or the equivalent from any eligible rating service), provided that such investments are held in accounts in ________'s name for
the benefit of customers and are permitted and held in accordance with state money-transmitter laws ("Money Market Funds").
The Prime Broker has represented to the Sponsor that it has implemented the following policy with respect to the cash associated with
the Trust's Trading Account. First, any cash related to the Trust's purchase or sale of LTC will be held in an omnibus account
in the Prime Broker's name for the benefit of ("FBO") its customers at each of multiple FDIC-insured banks (an "FBO
Account"), or in a Money Market Fund. The amount of Trust cash held at each FBO Account shall be in an amount at each bank that
is the lower of (i) the FDIC insurance limit for deposit insurance and (ii) any bank-specific limit set by the Prime Broker for the applicable
bank. Deposit insurance does not apply to cash held in a Money Market Fund. The Prime Broker has agreed to title the accounts in a manner
designed to enable receipt of FDIC deposit insurance where applicable on a pass-through basis, but does not guarantee that pass-through
insurance will apply since such insurance is dependent on the compliance of the bank. Second, to the extent the Trust's cash in
the Trading Account in aggregate exceeds the amounts that can be maintained at the banks on the foregoing basis, the Prime Broker has
represented that it currently conducts an overnight sweep of the excess into U.S. government money market funds. The Sponsor has not independently
verified the Prime Broker's representations. To the extent that the Prime Broker faces difficulty establishing or maintaining banking
relationships, the loss of the Prime Broker's banking partners or the imposition of operational restrictions by these banking partners
and the inability of the Prime Broker to utilize other financial institutions may result in a disruption of creation and redemption activity
of the Trust, or cause other operational disruptions or adverse effects for the Trust. In the future, it is possible that the Prime Broker
could be unable to establish accounts with new banking partners or establish new banking relationships, or that the banks with which the
Prime Broker is able to establish relationships may not be as large or well-capitalized or subject to the same degree of prudential supervision
as the existing providers.
40
The Trust could also suffer
losses in the event that a bank in which the Prime Broker holds customer cash, including the cash associated with the Trust's Trading
Account (which is used by the Prime Broker to move cash flows associated with the Trust's orders to sell LTC in connection with
payment of Trust expenses not assumed by the Sponsor), fails, becomes insolvent, enters receivership, is taken over by regulators, enters
financial distress, or otherwise suffers adverse effects to its financial condition or operational status. Recently, some banks have experienced
financial distress. For example, on March 8, 2023, the California Department of Financial Protection and Innovation ("DFPI")
announced that Silvergate Bank had entered voluntary liquidation, and on March 10, 2023, Silicon Valley Bank, ("SVB"), was
closed by the DFPI, which appointed the FDIC, as receiver. Similarly, on March 12, 2023, the New York Department of Financial Services
took possession of Signature Bank and appointed the FDIC as receiver. A joint statement by the Department of the Treasury, the Federal
Reserve and the FDIC on March 12, 2023, stated that depositors in Signature and SVB will have access to all of their funds, including
funds held in deposit accounts, in excess of the insured amount. On May 1, 2023, First Republic Bank was closed by the California Department
of Financial Protection and Innovation, which appointed the FDIC as receiver. Following a bidding process, the FDIC entered into a purchase
and assumption agreement with JPMorgan Chase Bank, National Association, to acquire the substantial majority of the assets and assume
certain liabilities of First Republic Bank from the FDIC.
The Prime Broker has historically
maintained banking relationships with Silvergate Bank and Signature Bank. While the Sponsor does not believe there is a direct risk to
the Trust's assets from the failures of Silvergate Bank or Signature Bank, in the future, changing circumstances and market conditions,
some of which may be beyond the Trust's or the Sponsor's control, could impair the Trust's ability to access any of
the Trust's cash held with the Prime Broker in the Trust's Trading Account or associated with the Trust's orders to
sell LTC in connection with payment of Trust expenses not assumed by the Sponsor. If the Prime Broker were to experience financial distress
or its financial condition is otherwise affected by the failure of its banking partners, the Prime Broker's ability to provide services
to the Trust could be affected. Moreover, the future failure of a bank at which the Prime Broker maintains customer cash, in the Trust's
Trading Account associated with the Trust's orders to sell LTC in connection with payment of Trust expenses not assumed by the Sponsor,
could result in losses to the Trust, to the extent the balances are not subject to deposit insurance, notwithstanding the regulatory requirements
to which the Prime Broker is subject or other potential protections. Although the Prime Broker has made certain representations to the
Sponsor regarding the Prime Broker's maintenance of records in a manner reasonably designed to qualify for FDIC insurance on a pass-through
basis in connection with the accounts in which the Prime Broker maintains cash on behalf of its customers (including the Trust), there
can be no assurance that such pass-through insurance will ultimately be made available. In addition, the Trust may maintain cash balances
with the Prime Broker that are not insured or are in excess of the FDIC's insurance limits, or which are maintained by the Prime
Broker at Money Market Funds and subject to the attendant risks (e.g., "breaking the buck"). As a result, the Trust could
suffer losses.
LTC held by the Trust
are not subject to FDIC or SIPC protections.
The Trust is not a banking
institution or otherwise a member of the Federal Deposit Insurance Corporation ("FDIC") or Securities Investor Protection
Corporation ("SIPC") and, therefore, deposits held with or assets held by the Trust are not subject to the protections enjoyed
by depositors with FDIC or SIPC member institutions. The undivided interests in the Trust's LTC represented by Shares in the Trust
are not insured directly by the Trustee or the Sponsor.
The Custodians'
limited liability under the Custody Agreements may impair the ability of the Trust to recover losses relating to its LTC and any recovery
may be limited, even in the event of fraud, to the market value of the LTC at the time the fraud is discovered.
Under the ________ Custody
Agreement, the ________ Custodian's liability is limited to the greater of (i) the market value of the Vault Account at the time
the events giving rise to the liability occurred and (ii) the fair market value of the Vault Account at the time that the Custodian notifies
the Sponsor or Trustee in writing, or the Sponsor or the Trustee otherwise has actual knowledge of the events giving rise to the liability.
In addition, the ________
Custodian will not be liable for any delay in performance or any non-performance of any of its custodial obligations under the Trust Agreement
or any Authorized Participant Agreement by reason of any cause beyond its reasonable control, including acts of God, war or terrorism.
The ________ Custodian will also not be liable for any system failure or third-party penetration of the LTC Account, unless such system
failure or third-party penetration is the result of gross negligence, bad faith or willful misconduct on the part of the Custodian. As
a result, the recourse of the Trust or the Shareholder, under New York law, is limited.
Under the ________ Custody
Agreement, ________ and its affiliates, including their officers, directors, agents, and employees, are not liable for any lost profits,
special, incidental, indirect, intangible, or consequential damages resulting from authorized or unauthorized use of the Trust or Sponsor's
site or services. This includes damages arising from any contract, tort, negligence, strict liability, or other legal grounds, even if
________ was previously advised of, knew, or should have known about the possibility of such damages. However, this exclusion of liability
does not extend to cases of ________'s fraud, willful misconduct, or gross negligence. In situations of gross negligence, ________'s
liability is specifically limited to the value of the digital assets or fiat currency that were affected by the negligence. Additionally,
the total liability of ________ for direct damages is capped at the fees paid or payable to them under the relevant agreement during the
three-month period immediately preceding the first incident that caused the liability.
41
In addition, ________ shall
not be liable for delays, suspension of operations, whether temporary or permanent, failure in performance, or interruption of service
which results directly or indirectly from any cause or condition beyond the reasonable control of ________, including, but not limited
to, any delay or failure due to an act of God, natural disasters, act of civil or military authorities, act of terrorists, including,
but not limited to, cyber-related terrorist acts, hacking, government restrictions, exchange or market rulings, civil disturbance, war,
strike or other labor dispute, fire, interruption in telecommunications or Internet services or network provider services, failure of
equipment and/or software, other catastrophe or any other occurrence which is beyond the reasonable control of ________.
Under the ________ Custody
Agreement, ________'s (or its affiliates') liability to the Trust in the case of Theft is limited to the greater of (i) the
service fees paid or payable by the Trust to ________ under the ________ Custody Agreement during the 24-month period immediately preceding
the Theft, or (ii) the actual amount received by ________ under its insurance policies maintained, if any, for the Theft, or related to
such claim, which shall be prorated across all clients impacted by such Theft. Other than in the case of Theft, ________ (or its affiliates)
shall not be liable to the Trust (whether arising in contract, tort (including negligence), breach of statutory duty or otherwise) for
any sum which would result in ________'s (or its affiliates') total liability under the ________ Custody Agreement to exceed
the service fees paid or payable by the Trust to ________ under the ________ Custody Agreement during the 12-month period immediately
preceding the event giving rise to liability.
In addition, ________ shall
not be liable for any losses or for its failure to comply with its obligations under the ________ Custody Agreement if such losses or
failure is caused by, or is directly or indirectly due to circumstances beyond ________'s reasonable control (including industrial
action or strike action; currency restrictions; suspension or disruption of the normal procedures and practices of, or disruption of the
infrastructure of, any settlement provider, clearing house, distributed ledger technology network, securities market or exchange; acts,
omissions or insolvency of a third party; failure of a material utility supply; war damage; terrorist action; the act of any governmental
agency or other competent authority; riot; pandemic or epidemic; fire; or flood lock-out); provided, that ________ shall: (i) notify the
Trust in a timely manner of the occurrence of a perceived force majeure event and its anticipated duration and impact; and (ii) use reasonable
efforts to minimize the effects of the event.
The Trust may not have
adequate sources of recovery if its LTC are lost, stolen or destroyed.
If the Trust's LTC are
lost, stolen or destroyed under circumstances rendering a party liable to the Trust, the responsible party may not have the financial
resources sufficient to satisfy the Trust's claim. For example, as to a particular event of loss, the only source of recovery for
the Trust might be limited to a Custodian or, to the extent identifiable, other responsible third parties (for example, a thief or terrorist),
any of which may not have the financial resources (including liability insurance coverage) to satisfy a valid claim of the Trust.
If a Custody Agreement
is terminated or a Custodian fails to provide services as required, the Sponsor may need to find and appoint a replacement custodian,
which could pose a challenge to the safekeeping of the Trust's LTC, and the Trust's ability to continue to operate may be
adversely affected.
The Trust is dependent on
the Custodians and the LTC Trading Counterparties to operate. The Custodians perform essential functions in terms of safekeeping the Trust's
LTC in the Vault Accounts. In addition, the LTC Trading Counterparties, including ________ Custodian's affiliate, ________, in its
capacity as Prime Broker, facilitate the buying and selling or settlement of LTC by the Trust in connection with cash creations and redemptions
between the Trust and the Authorized Participants, the selling or transfer of LTC to pay the Sponsor's Fee, any other Trust expenses,
to the extent applicable, and in extraordinary circumstances, to liquidate the Trust's LTC. If the Custodians or LTC Trading Counterparties,
including Prime Broker fails to perform the functions they perform for the Trust, the Trust may be unable to operate or create or redeem
Creation Units, which could force the Trust to liquidate or adversely affect the price of the Shares.
42
On March 22, 2023, ________
and the ________ Custodian's parent company, ________ (together, the "Relevant ________ Entities") received a "Wells
Notice" from the SEC staff stating that the SEC staff made a "preliminary determination" to recommend that the SEC file
an enforcement action against the Relevant ________ Entities alleging violations of the federal securities laws, including the Exchange
Act and the Securities Act. According to ________'s public reporting company disclosure, based on discussions with the SEC staff,
the Relevant ________ Entities believe these potential enforcement actions would relate to aspects of the Relevant ________ Entities'
________ Prime service, spot market, staking service ________ Earn, and ________ Wallet and the potential civil action may seek injunctive
relief, disgorgement, and civil penalties. On June 6, 2023, the SEC filed a complaint against the Relevant ________ Entities in federal
district court in the Southern District of New York, alleging, inter alia: (i) that ________ has violated the Exchange Act by failing
to register with the SEC as a national securities exchange, broker-dealer, and clearing agency, in connection with activities involving
certain identified digital assets that the SEC's complaint alleges are securities, (ii) that ________ has violated the Securities
Act by failing to register with the SEC the offer and sale of its staking program, and (iii) that ________ is jointly and severally liable
as a control person under the Exchange Act for ________'s violations of the Exchange Act to the same extent as ________. The SEC's
complaint against the Relevant ________ Entities does not allege that LTC is a security nor does it allege that ________'s activities
involving LTC caused the alleged registration violations, and the ________ Custodian was not named as a defendant. The SEC's complaint
seeks a permanent injunction against the Relevant ________ Entities to prevent them from violations of the Exchange Act or Securities
Act, disgorgement, civil monetary penalties, and such other relief as the court deems appropriate or necessary. ________ could be required,
as a result of a judicial determination, or could choose, to restrict or curtail the services it offers, or its financial condition and
ability to provide services to the Trust could be affected. If ________ were to be required or choose as a result of a regulatory action
(including, for example, the litigation initiated by the SEC), to restrict or curtail the services it offers, it could negatively affect
the Trust's ability to operate or process creations or redemptions of Baskets, which could force the Trust to liquidate or adversely
affect the price of the Shares. While the ________ Custodian is not named in the complaint, if ________, as the parent of the ________
Custodian, is required, as a result of a judicial determination, or could choose, to restrict or curtail the services its subsidiaries
provide to the Trust, or its financial condition is negatively affected, it could negatively affect the Trust's ability to operate.
Alternatively, the Sponsor
could decide to replace one of the Custodians as a Custodian with custody of the Trust's LTC, pursuant to the Custody Agreements.
Similarly, the Custodians or Prime Broker could terminate their applicable agreements. The ________ Custodian or ________ could terminate
services under the ________ Custody Agreement or the Prime Broker Agreement, respectively, upon providing the applicable notice to the
Trust for any reason, or immediately for Cause (a "Termination for Cause" is defined in the ________ Custody Agreement as
(i) the Trust materially breaching any provision of the ________ Custody Agreement; (ii) the Trust becomes bankrupt or insolvent; or (iii)
the Trust fails to pay and settle in full its obligations to the ________ Custodian's affiliate, the Trade Credit Lender (as defined
below), which may, from time to time, provide financing to the Trust in the form of Trade Credits). In addition, ________ may terminate
the ________ Custody Agreement for any reason upon providing at least thirty (30) days' written notice to the Trust and to the Sponsor,
or immediately if ________ perceives a risk of legal or regulatory non-compliance associated with the Trust's custodial account
activity, among others. ________ may terminate the ________ Custody Agreement for any reason upon providing at least three (3) months'
written notice to the Trust, or immediately upon written notice to the Trust if: (i) ________ determines, in its sole discretion, that
continued provision of the custody services would result in violation of applicable law or regulation relating to either ________ or the
Trust and the parties are unable to amend the relevant provisions of the ________ Custody Agreement, (ii) a force majeure event, as defined
in the ________ Custody Agreement, continues for at least forty-five (45) days, or (iii) the Trust does not utilize the custody services
set forth in the ________ Custody Agreement for a period of twelve (12) months from the effective date of the ________ Custody Agreement.
Transferring maintenance responsibilities of a Vault Account at a Custodian to another custodian will likely be complex and could subject
the Trust's LTC to the risk of loss during the transfer, which could have a negative impact on the performance of the Shares or
result in loss of the Trust's assets.
As Prime Broker, ________
does not guarantee uninterrupted access to the Trading Platform or the services it provides to the Trust as Prime Broker. Under certain
circumstances, ________ is permitted to halt or suspend trading on its trading platform, or impose limits on the amount or size of, or
reject, the Trust's orders, including in the event of, among others, (a) delays, suspension of operations, failure in performance,
or interruption of service that are directly due to a cause or condition beyond the reasonable control of ________, (b) the Trust has
engaged in unlawful or abusive activities or fraud, (c) the acceptance of the Trust's order would cause the amount of Trade Credits
extended to exceed the maximum amount of Trade Credit (as defined below) that the Trust's agreement with the Trade Credit Lender
permits to be outstanding at any one time, or (d) a security or technology issue occurred and is continuing that results in ________ being
unable to provide trading services or accept the Trust's order, in each case, subject to certain protections for the Trust.
Also, if a Custodian or ________
becomes insolvent, suffers business failure, ceases business operations, defaults on or fails to perform their obligations under their
contractual agreements with the Trust, or abruptly discontinues the services they provide to the Trust for any reason, the Trust's
operations would be adversely affected.
The Sponsor may not be able
to find a party willing to serve as the custodian of the Trust's LTC or as the Trust's broker under the same terms as the
current Custody Agreements or Prime Broker Agreement or at all. To the extent that the Sponsor is not able to find a suitable party willing
to serve as the custodian or prime broker, the Sponsor may be required to terminate the Trust and liquidate the Trust's LTC. In
addition, to the extent that the Sponsor finds a suitable party but must enter into a modified custody agreement or prime broker agreement
that is less favorable for the Trust, the value of the Shares could be adversely affected. If the Trust is unable to find a replacement
prime broker, its operations could be adversely affected.
43
The Sponsor may need
to find and appoint a replacement custodian quickly, which could pose a challenge to the safekeeping of the Trust's LTC.
The Sponsor could decide to
replace one or both of the Custodians as the custodian of the Trust's LTC. Transferring maintenance responsibilities of the Trust's
account with a Custodian to another party will likely be complex and could subject the Trust's LTC to the risk of loss during the
transfer, which could have a negative impact on the performance of the Shares or result in loss of the Trust's assets. The Sponsor
may not be able to find a party willing to serve as the custodian under the same terms as the current Custody Agreements. To the extent
that the Sponsor is not able to find a suitable party willing to serve as the custodian, the Sponsor may be required to terminate the
Trust and liquidate the Trust's LTC.
The Custodians and Cash
Custodian could become insolvent.
If the Custodians or Cash
Custodian becomes insolvent or subject to a receivership or bankruptcy proceeding, the Trust's operations may be adversely affected,
and there is a risk that the insolvency, receivership or bankruptcy of a Custodian may result in the loss of all or a substantial portion
of the Trust's assets or in a significant delay in the Trust having access to those assets. The Trust's assets will be held
in one or more accounts maintained for the Trust by the Custodians. Further, the Custodians have agreed to hold Trust assets for the benefit
of the Trust as the entitlement holder, and while the Trust assets will be commingled with assets of the Custodians' other customers
in an omnibus account, such assets will not be commingled with either Custodian's proprietary assets. While other types of assets
held in a similarly segregated manner have been deemed not to be part of the custodian's bankruptcy estate under various regulatory
regimes, bankruptcy courts have not yet fully addressed the appropriate treatment of custodial holdings of digital assets and any such
determination may be highly fact-specific.
Given that the contractual
protections and legal rights of customers with respect to digital assets held on their behalf by third parties are relatively untested
in a bankruptcy or receivership proceeding of an entity such as either Custodian, in the event of an insolvency, receivership or bankruptcy
proceeding with respect to a Custodian, there is a risk that the Trust's assets may be considered the property of the bankruptcy
estate of such Custodian, and that customers of such Custodian – including the Trust – may be at risk of being treated as
general unsecured creditors of such Custodian and subject to the risk of total loss or markdowns on value of such assets. Moreover, even
if the Trust's assets ultimately are not treated as part of a Custodian's bankruptcy estate, the automatic stay could apply
until the bankruptcy court made such a determination, and the limited precedent and fact-dependent nature of the determination could delay
or preclude the return of such assets to the Trust. Further, the bankruptcy court may permit a Custodian to retain possession or custody
of its customers' assets until any claims the estate may have against the customers (including the Trust) are resolved.
An actual or perceived business
failure or interruption, default, failure to perform security breach or other problems affecting a Custodian, Cash Custodian or LTC Trading
Counterparties could harm the Trust's operations, result in partial or total loss of the Trust's assets, damage the Trust's
reputation and negatively affect the market perception of the effectiveness of the Trust, all of which could in turn reduce demand for
the Shares, resulting in a reduction in the price of the Shares.
The liquidity of the
Shares may be affected if Authorized Participants cease to perform their obligations under the Authorized Participant Agreements.
In the event that one or more
Authorized Participants having substantial interests in Shares or otherwise responsible for a significant portion of the Shares'
daily trading volume on Nasdaq terminates its Authorized Participant Agreement, the liquidity of the Shares would likely decrease, which
could adversely affect the market price of, and an investment in, the Shares.
There is no guarantee
that an active trading market for the Shares will continue to develop.
There can be no assurance
an active trading market of the Shares will develop on Nasdaq. The Sponsor may elect to terminate the Trust if it determines, at its sole
discretion, that the Trust is not an economically viable size, i.e., if the Trust fails to raise sufficient revenue to cover the costs
associated with launching and maintaining the Trust, which could result in the liquidation of the Trust's LTC at a time that is
disadvantageous to Shareholders.
To the extent that Nasdaq
halts trading in the Shares, whether on a temporary or permanent basis, investors may not be able to buy or sell Shares, thus adversely
affecting an investment in the Shares. If an active trading market for the Shares does not exist or continue to exist, the market prices
and liquidity of the Shares may be adversely affected.
44
The Trust may be required
to terminate and liquidate at a time that is disadvantageous to Shareholders.
If the Trust is required to
terminate and liquidate, such termination and liquidation could occur at a time that is disadvantageous to Shareholders, such as when
the LTC Index Price is lower than it was at the time when Shareholders purchased their Shares. In such a case, when the Trust's
LTC are sold as part of the Trust's liquidation, the resulting proceeds distributed to Shareholders will be less than if the LTC
Index Price were higher at the time of sale. See "Description of the Trust Agreement—The Trustee—Termination of the
Trust" for more information about the termination of the Trust, including when the termination of the Trust may be triggered by
events outside the direct control of the Sponsor, the Trustee or the Shareholders.
The Trust Agreement
includes a provision that restricts the right of a beneficial owner of a statutory trust from bringing a derivative action.
Under Delaware law, the right
of a beneficial owner of a statutory trust (such as a Shareholder of the Trust) to bring a derivative action (i.e., to initiate a lawsuit
in the name of a the statutory trust in order to assert a claim belonging to the statutory trust against a fiduciary of the statutory
trust or against a third party when the statutory trust's management has refused to do so) may be restricted by the terms of the
governing instrument of the statutory trust. The Trust Agreement provides that in addition to any other requirements of applicable law,
no Shareholder shall have the right, power or authority to bring or maintain a derivative action, suit or other proceeding on behalf of
the Trust unless two or more Shareholders who (i) are not affiliates of one another and (ii) collectively hold at least 10% of the outstanding
Shares join in the bringing or maintaining of such action, suit or other proceeding. Therefore, the Trust Agreement limits the likelihood
that a Shareholder could successfully assert a derivative action.
The Administrator is
solely responsible for determining the value of the LTC, and any errors, discontinuance or changes in such valuation calculations may
have an adverse effect on the value of the Shares.
The Administrator will determine
the Trust's LTC Holdings and LTC Holdings per Share on a daily basis as soon as practicable after 4:00 p.m. ET on each business
day. The Administrator's determination is made utilizing data from the Custodians' operations and the LTC Index Price, calculated
at 4:00 p.m. ET on such day. To the extent that the Trust's LTC Holdings or LTC Holdings per Share are incorrectly calculated, the
Administrator may not be liable for any error and such misreporting of valuation data could adversely affect an investment in the Shares.
Extraordinary expenses
resulting from unanticipated events may become payable by the Trust, adversely affecting an investment in the Shares.
In consideration for the Sponsor's
Fee, the Sponsor has contractually assumed the Sponsor-assumed Fees, which are certain operational and periodic expenses of the Trust.
See "Activities of the Trust—Trust Expenses." Extraordinary expenses of the Trust (for example, expenses relating to
litigation) are not assumed by the Sponsor and are instead borne by the Trust and paid through the sale of the Trust's LTC. Because
the Trust does not generate any income, every time that it delivers LTC to the Sponsor for the Sponsor's Fee or sells LTC for the
Additional Trust Expenses, the number of LTC represented by each Share will gradually decrease over time. In addition, the Sponsor may,
at its sole discretion, increase the Sponsor's Fee or decrease the Sponsor-paid Expenses which could result in a greater decline
in the number of LTC that the Trust holds. Such an increase in the Sponsor's Fee or decrease in the Sponsor-paid Expenses could
occur if the expenses of the Trust materially increase. Alternatively, the Sponsor could choose to decrease the Sponsor's Fee in
response to competitive pressures from other digital currency financial vehicles similar to the Trust. The Sponsor will balance such competitive
pressures and the costs that it incurs in acting as Sponsor for the Trust when determining the Sponsor's Fee. The Sponsor has no
current intention of increasing or decreasing the Sponsor's Fee or modifying the terms of the Trust Agreement related to Sponsor-paid
Expenses, and there are no specific circumstances under which the Sponsor has determined it would do so.
The Trust's delivery
or sale of LTC to pay expenses or other operations of the Trust could result in Shareholders incurring tax liability without an associated
distribution from the Trust.
Assuming that the Trust is
treated as a grantor trust for U.S. federal income tax purposes, each delivery of LTC by the Trust to pay the Sponsor's Fee or other
expenses and each sale of LTC by the Trust to pay Additional Trust Expenses will be a taxable event to Shareholders. Thus, the Trust's
payment of expenses could result in Shareholders' incurring tax liability without an associated distribution from the Trust. Any
such tax liability could adversely affect an investment in the Shares. See "U.S. Federal Income Tax Consequences."
If the Trust incurs
extraordinary expenses in U.S. dollars, the Trust will sell LTC to pay these expenses. The sale of the Trust's LTC to pay expenses
at a time of low LTC prices could adversely affect the value of the Shares.
The Sponsor will sell LTC
held by the Trust to pay Trust expenses not assumed by the Sponsor on an as-needed basis, irrespective of then-current LTC prices on the
LTC Exchange Market. The Trust is not actively managed and no attempt will be made to protect against or to take advantage of fluctuations
in the price of LTC. Consequently, if the Trust incurs expenses in U.S. dollars, the Trust's LTC may be sold at a time when the
LTC prices on the LTC Exchange Market are low, resulting in a negative impact on the value of the Shares.
45
The value of the Shares
will be adversely affected if the Trust is required to indemnify the Sponsor, the Trustee, the Transfer Agent, the Administrator or the
Custodians under the Trust Documents.
Under the Trust Documents,
each of the Sponsor, the Trustee, the Transfer Agent, the Administrator, the Custodians and Prime Broker has a right to be indemnified
by the Trust for certain liabilities or expenses that it incurs without gross negligence, bad faith or willful misconduct on its part.
Therefore, the Sponsor, Trustee, Transfer Agent, the Administrator, Custodians or Prime Broker may require that the assets of the Trust
be sold in order to cover losses or liability suffered by it. Any sale of that kind would reduce the Trust's LTC Holdings and the
value of the Shares.
Intellectual property
rights claims may adversely affect the Trust and an investment in the Shares.
The Sponsor is not aware of
any intellectual property rights claims that may prevent the Trust from operating and holding LTC; however, third parties may assert intellectual
property rights claims relating to the operation of the Trust and the mechanics instituted for the investment in, holding of and transfer
of LTC. Regardless of the merit of an intellectual property or other legal action, any legal expenses to defend or payments to settle
such claims would be Additional Trust Expenses and be borne by the Trust through the sale of the Trust's LTC. Additionally, a meritorious
intellectual property rights claim could prevent the Trust from operating and force the Sponsor to terminate the Trust and liquidate the
Trust's LTC. As a result, an intellectual property rights claim against the Trust could adversely affect an investment in the Shares.
Risk Factors
Related to the Regulation of the Trust and the Shares
A
determination that LTC or any other digital asset is a "security" may adversely affect the value of LTC and the value of the
Shares, and result in potentially extraordinary, nonrecurring expenses to, or termination of, the Trust.
Depending
on its characteristics, a digital asset may be considered a "security" under the federal securities laws. The test for determining
whether a particular digital asset is a "security" is complex and difficult to apply, and the outcome is difficult to predict.
Public, though non-binding, statements by senior officials at the SEC have indicated that the SEC did not consider bitcoin or ether to
be securities, and does not currently consider bitcoin to be a security. In addition, the SEC, by action through delegated authority approving
the exchange rule filings to list shares of trusts holding Ether as a commodity-based exchange traded products, has implicitly
taken
the view that Ether is a commodity that is not a security. The SEC staff has also provided informal assurances via no-action letter to
a handful of promoters that their digital assets are not securities. On the other hand, the SEC has brought enforcement actions against
the issuers and promoters of several other digital assets on the basis that the digital assets in question are securities. More recently,
the SEC has also brought enforcement actions against digital asset trading platforms for operating unregistered securities exchanges on
the basis that certain of the digital assets traded on their platforms are securities.
For
example, in June 2023, the SEC brought the Binance Complaint and the Coinbase Complaint, alleging violations of a variety of securities
laws. In its complaints, the SEC asserted that SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, COTI, CHZ, FLOW, ICP, NEAR, VGX, DASH
and NEXO, are securities under the federal securities laws. DASH is a fork of LTC and thus shares certain similarities with LTC. In addition,
in November 2023, the SEC brought the Kraken Complaint, alleging that Kraken operated as an unregistered securities exchange, brokerage
and clearing agency. In July 2024, the SEC amended the Binance Complaint to remove its claims asserting that SOL, ADA, MATIC, FIL, ATOM,
SAND, MANA, ALGO, AXS and COTI are securities under the federal securities laws. However, there can be no guarantee that the SEC will
not bring similar claims involving these or other digital assets in the future.
Whether
a digital asset is a security under the federal securities laws depends on whether it is included in the lists of instruments making up
the definition of "security" in the Securities Act, the Exchange Act and the Investment Company Act. Digital assets as such
do not appear in any of these lists, although each list includes the terms "investment contract" and "note," and
the SEC has typically analyzed whether a particular digital asset is a security by reference to whether it meets the tests developed by
the federal courts interpreting these terms, known as the
Howey
and
Reves
tests, respectively. For many digital assets,
whether or not the
Howey
or
Reves
tests are met is difficult to resolve definitively, and substantial legal arguments can
often be made both in favor of and against a particular digital asset qualifying as a security under one or both of the
Howey
and
Reves
tests. Adding to the complexity, the SEC staff has indicated that the security status of a particular digital asset can change
over time as the relevant facts evolve, though recent arguments advanced in ongoing litigation may suggest that the SEC no longer believes
the status of a digital asset can change over time.
46
As
part of determining whether LTC is a security for purposes of the federal securities laws, the Sponsor takes into account a number of
factors, including the various definitions of "security" under the federal securities laws and federal court decisions interpreting
elements of these definitions, such as the U.S. Supreme Court's decisions in the
Howey
and
Reves
cases and their progeny,
as well as reports, orders, press releases, public statements and speeches by the SEC, its commissioners and its staff providing guidance
on when a digital asset may be a security for purposes of the federal securities laws. Finally, the Sponsor discusses the security status
of LTC with external counsel, and has received a memorandum regarding the status of LTC under the federal securities laws from external
counsel and has discussed the status of LTC with external counsel and continues to believe that LTC is not a security. Through this process
the Sponsor believes that it is applying the proper legal standards in determining that LTC is not a security in light of the uncertainties
inherent in the
Howey
and
Reves
tests. The Sponsor has been contacted by staff from the SEC's Divisions of Corporation
Finance and Enforcement concerning the Sponsor's securities law analysis of LTC and has responded to the SEC staff.
In
light of these uncertainties and the fact-based nature of the analysis, the Sponsor acknowledges that the SEC may take a contrary position;
and the Sponsor's conclusion, even if reasonable under the circumstances, would not preclude legal or regulatory action based on
the presence of a security.
As
is the case with LTC, analyses from counsel typically review the often-complex facts surrounding a particular digital asset's underlying
technology, creation, use case and usage, development, distribution and secondary-market trading characteristics as well as contributions
and of marketing or promotional efforts by the individuals or organizations who appear to be involved in these activities, among other
relevant facts, usually drawing on publicly available information. This information, usually found on the internet, often includes both
information that originated with or is attributed to such individuals or organizations, as well as information from third-party sources
and databases that may or may not have a connection to such individuals or organizations, and the availability and nature of such information
can change over time. The Sponsor and counsel often have no independent means of verifying the accuracy or completeness of such information,
and therefore of necessity usually must assume that such information is materially accurate and complete for purposes of the
Howey
and
Reves
analyses. After having gathered this information, counsel typically analyzes it in light of the
Howey
and
Reves
tests, in order to inform a judgment as to whether or not a federal court would conclude that the digital asset in question is or is not
a security for purposes of the federal securities laws. Often, certain factors appear to support a conclusion that the digital asset in
question is a security, while other factors appear to support the opposite conclusion, and in such a case counsel endeavors to weigh the
importance and relevance of the competing factors. This analytical process is further complicated by the fact that, at present, federal
judicial case law applying the relevant tests to digital assets is limited and in some situations inconsistent, with no federal appellate
court having considered the question on the merits, as well as the fact that because each digital asset presents its own unique set of
relevant facts, it is not always possible to directly analogize the analysis of one digital asset to another. Because of this factual
complexity and the current lack of a well-developed body of federal case law applying the relevant tests to a variety of different fact
patterns, the Sponsor has not in the past received, and currently does not expect that it would be able to receive, "opinions"
of counsel stating that a particular digital asset is or is not a security for federal securities law purposes. The Sponsor understands
that as a matter of practice, counsel is generally able to render a legal "opinion" only when the relevant facts are substantially
ascertainable and the applicable law is both well-developed and settled. As a result, given the relative novelty of digital assets, the
challenges inherent in fact-gathering for particular digital assets, and the fact that federal courts have only recently been tasked with
adjudicating the applicability of federal securities law to digital assets, the Sponsor understands that at present counsel is generally
not in a position to render a legal "opinion" on the securities-law status of LTC or any other particular digital asset.
As
such, notwithstanding the Sponsor's receipt of a memorandum regarding the status of LTC under the federal securities laws from external
counsel and the Sponsor's view that LTC is not a security, the SEC or a federal court may in the future take a different view as
to the security status of LTC.
If
the Sponsor determines that LTC is a security under the federal securities laws, whether that determination is initially made by the Sponsor
itself, or because a federal court upholds an allegation that LTC is a security, the Sponsor does not intend to permit the Trust to continue
holding LTC in a way that would violate the federal securities laws (and therefore would either dissolve the Trust or potentially seek
to operate the Trust in a manner that complies with the federal securities laws, including the Investment Company Act). Because the legal
tests for determining whether a digital asset is or is not a security often leave room for interpretation, for so long as the Sponsor
believes there to be good faith grounds to conclude that the Trust's LTC is not a security, the Sponsor does not intend to dissolve
the Trust on the basis that LTC could at some future point be finally determined to be a security.
Any
enforcement action by the SEC or a state securities regulator asserting that LTC is a security, or a court decision to that effect, would
be expected to have an immediate material adverse impact on the trading value of LTC, as well as the Shares. This is because the business
models behind most digital assets are incompatible with regulations applying to transactions in securities. If a digital asset is determined
to be a security, it is likely to become difficult or impossible for the digital asset to be traded, cleared or custodied in the United
States through the same channels used by non-security digital assets, which in addition to materially and adversely affecting the trading
value of the digital asset is likely to significantly impact its liquidity and market participants' ability to convert the digital
asset into U.S. dollars. Any assertion that a digital asset is a security by the SEC or another regulatory authority may have similar
effects. For example, in 2020 the SEC filed a complaint against the issuer of XRP, Ripple Labs, Inc., and two of its executives, alleging
that they raised more than $1.3 billion through XRP sales that should have been registered under the federal securities laws, but were
not. In the years prior to the SEC's action, XRP's market capitalization at times reached over $140 billion. However, in the
weeks following the SEC's complaint, XRP's market capitalization fell to less than $10 billion, which was less than half of
its market capitalization in the days prior to the complaint.
47
Likewise,
in the days following the announcement of the Binance Complaint and Coinbase Complaint, the price of various digital assets, including
bitcoin, ether and LTC, declined significantly and may continue to decline as these cases advance through the federal court system. Subsequently,
in July 2023, the District Court for the Southern District of New York held that while XRP is not a security, certain sales of XRP to
certain buyers (but not other types of sales to other buyers) amounted to "investment contracts" under the
Howey
test.
The District Court entered a final judgment in the case on August 7, 2024. On October 2, 2024, the SEC filed a notice of appeal with the
S.D.N.Y to appeal to the United States Court of Appeals for the Second Circuit from the final judgment entered by the S.D.N.Y. on August
7, 2024. Moreover, also in July 2023, another judge in the District Court for the Southern District of New York, in litigation between
the SEC and the issuer of the UST and LUNA digital assets, suggested that he disagreed with the approach underlying the XRP decision.
The Binance Complaint, the Coinbase Complaint, the Kraken Complaint, and the SEC's actions against XRP's issuer and the issuer
of the UST and LUNA digital assets, as well as seemingly inconsistent views of different district court judges, underscore the continuing
uncertainty around which digital assets are securities and what the correct analysis is to determine each digital asset's status.
For example, the conflicting district court opinions and analyses demonstrate that factors such as how long a digital asset has been in
existence, how widely held it is, how large its market capitalization is, the manner in which it is offered, sold or promoted, and whether
it has actual use in commercial transactions, ultimately may have limited to no bearing on whether the SEC, a state securities regulator
or any particular court will find it to be a security.
In
addition, if LTC is in fact a security, the Trust could be considered an unregistered "investment company" under the Investment
Company Act, which could necessitate the Trust's liquidation. In this case, the Trust and the Sponsor may be deemed to have participated
in an illegal offering of investment company securities and there is no guarantee that the Sponsor will be able to register the Trust
under the Investment Company Act at such time or take such other actions as may be necessary to ensure the Trust's activities comply
with applicable law, which could force the Sponsor to liquidate the Trust.
Moreover,
whether or not the Sponsor or the Trust were subject to additional regulatory requirements as a result of any determination that the Trust's
assets include securities, the Sponsor may nevertheless decide to terminate the Trust, in order, if possible, to liquidate the Trust's
assets while a liquid market still exists. If the SEC or a federal court were to determine that LTC is a security, it is likely that the
value of the Shares of the Trust would decline significantly. Furthermore, if a federal court upholds an allegation that LTC is a security,
the Trust itself may be terminated and, if practical, its assets liquidated.
Regulatory
changes or actions by the U.S. Congress or any U.S. federal or state agencies may affect the value of the Shares or restrict the use of
LTC, mining activity or the operation of the Litecoin Network or the digital asset markets in a manner that adversely affects the value
of the Shares.
As
digital assets have grown in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies (including
FinCEN, OFAC, SEC, CFTC, the Financial Industry Regulatory Authority ("FINRA"), the Consumer Financial Protection Bureau ("CFPB"),
the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation, the IRS, the Office of the Comptroller
of the Currency, the Federal Deposit Insurance Corporation, the Federal Reserve and state financial institution and securities regulators)
have been examining the operations of digital asset networks, digital asset users and the digital asset markets, with particular focus
on the extent to which digital assets can be used to launder the proceeds of illegal activities, evade sanctions or fund criminal or terrorist
enterprises and the safety and soundness of trading platforms and other service providers that hold or custody digital assets for users.
Many of these state and federal agencies have issued consumer advisories regarding the risks posed by digital assets to investors. President
Biden's March 9, 2022 Executive Order, asserting that technological advances and the rapid growth of the digital asset markets "necessitate
an evaluation and alignment of the United States Government approach to digital assets," signals an ongoing focus on digital asset
policy and regulation in the United States. A number of reports issued pursuant to the Executive Order have focused on various risks related
to the digital asset ecosystem, and have recommended additional legislation and regulatory oversight. In addition, federal and state agencies,
and other countries and international bodies have issued rules or guidance about the treatment of digital asset transactions or requirements
for businesses engaged in digital asset activity. Moreover, the failure of FTX Trading Ltd. ("FTX") in November 2022 and the
resulting market turmoil substantially increased regulatory scrutiny in the United States and globally and led to SEC and criminal investigations,
enforcement actions and other regulatory activity across the digital asset ecosystem.
48
In
addition, the SEC, U.S. state securities regulators and several foreign governments have issued warnings and instituted legal proceedings
in which they argue that certain digital assets may be classified as securities and that both those digital assets and any related initial
coin offerings or other primary and secondary market transactions are subject to securities regulations. For example, in June 2023, the
SEC brought charges against Binance and Coinbase, and in November 2023, the SEC brought charges against Kraken, alleging that they operated
unregistered securities exchanges, brokerages and clearing agencies. In its complaints, the SEC asserted that several digital assets are
securities under the federal securities laws. The outcomes of these proceedings, as well as ongoing and future regulatory actions, have
had a material adverse effect on the digital asset industry as a whole and on the price of LTC, and may alter, perhaps to a materially
adverse extent, the nature of an investment in the Shares and/or the ability of the Trust to continue to operate. Additionally, U.S. state
and federal, and foreign regulators and legislatures have taken action against virtual currency businesses or enacted restrictive regimes
in response to adverse publicity arising from hacks, consumer harm, or criminal activity stemming from virtual currency activity.
In
August 2021, the chair of the SEC stated that he believed investors using digital asset trading platforms are not adequately protected,
and that activities on the platforms can implicate the securities laws, commodities laws and banking laws, raising a number of issues
related to protecting investors and consumers, guarding against illicit activity, and ensuring financial stability. The chair expressed
a need for the SEC to have additional authorities to prevent transactions, products, and platforms from "falling between regulatory
cracks," as well as for more resources to protect investors in "this growing and volatile sector." The chair called
for federal legislation centering on digital asset trading, lending, and decentralized finance platforms, seeking "additional plenary
authority" to write rules for digital asset trading and lending. However, the chair has subsequently stated that the SEC already
has explicit authority under existing laws to regulate the digital asset sector and several enforcement actions were filed against digital
asset trading platforms during the first half of 2023. In particular, in June 2023, the SEC brought enforcement actions against Binance
and Coinbase, two of the largest digital asset trading platforms, alleging that they operated unregistered securities exchanges, brokerages
and clearing agencies.
The
SEC has taken steps to interpret its existing authorities as covering various digital asset activities. For example, the SEC has recently
proposed amendments to the custody rules under Rule 406(4)-2 of the Investment Advisers Act. The proposed rule changes would amend the
definition of a "qualified custodian" under Rule 206(4)-2(d)(6) and expand the current custody rule under Rule 406(4)-2 to
cover digital assets and related advisory activities. If enacted as proposed, these rules would likely impose additional regulatory requirements
with respect to the custody and storage of digital assets and could lead to additional regulatory oversight of the digital asset ecosystem
more broadly.
Various
foreign jurisdictions have, and may continue to, in the near future, adopt laws, regulations or directives that affect a digital asset
network, the digital asset markets, and their users, particularly digital asset trading platforms and service providers that fall within
such jurisdictions' regulatory scope. For example:
●
China has made transacting in cryptocurrencies
illegal for Chinese citizens in mainland China, and additional restrictions may follow. China has banned initial coin offerings and there
have been reports that Chinese regulators have taken action to shut down a number of China-based digital asset trading platforms.
●
South Korea determined to amend its Financial
Information Act in March 2020 to require virtual asset service providers to register and comply with its AML and counter-terrorism funding
framework. These measures also provide the government with the authority to close digital asset trading platforms that do not comply with
specified processes. South Korea has also banned initial coin offerings.
●
The Reserve Bank of India in April 2018 banned
the entities it regulates from providing services to any individuals or business entities dealing with or settling digital assets. In
March 2020, this ban was overturned in the Indian Supreme Court, although the Reserve Bank of India is currently challenging this ruling.
●
The United Kingdom's Financial Conduct
Authority published final rules in October 2020 banning the sale of derivatives and exchange-traded notes that reference certain types
of digital assets, contending that they are "ill-suited" to retail investors citing extreme volatility, valuation challenges
and association with financial crime. A new law, the Financial Services and Markets Act 2023 ("FSMA"), received royal assent
in June 2023. The FSMA brings digital asset activities within the scope of existing laws governing financial institutions, markets and
assets.
49
●
The Parliament of the European Union approved
the text of the Markets in Crypto-Assets Regulation ("MiCA") in April 2023, establishing a regulatory framework for digital
asset services across the European Union. MiCA is intended to serve as a comprehensive regulation of digital asset markets and imposes
various obligations on digital asset issuers and service providers. The main aims of MiCA are industry regulation, consumer protection,
prevention of market abuse and upholding the integrity of digital asset markets. MiCA was formally approved by the European Union's
member states in 2023. Certain parts of MiCA became effective as of June 2024 and the remainder will start to apply as of December 2024.
There
remains significant uncertainty regarding foreign governments' future actions with respect to the regulation of digital assets and
digital asset trading platforms. Such laws, regulations or directives may conflict with those of the United States and may negatively
impact the acceptance of LTC by users, merchants and service providers outside the United States and may therefore impede the growth or
sustainability of the Litecoin ecosystem in the United States and globally, or otherwise negatively affect the value of LTC held by the
Trust. The effect of any future regulatory change on the Trust or the LTC held by the Trust is impossible to predict, but such change
could be substantial and adverse to the Trust and the value of the Shares.
The Trust is not
a registered investment company and is not subject to the Commodity Exchange Act.
The Trust is not a registered
investment company subject to the Investment Company Act. Consequently, Shareholders of the Trust do not have the regulatory protections
provided to Shareholders in registered and regulated investment companies, which, for example, require investment companies to have a
certain percentage of disinterested directors and regulate the relationship between the investment company and certain of its affiliates.
Further, the Trust will not hold or trade in commodity futures contracts regulated by the Commodity Exchange Act, as administered by the
CFTC. The Trust will not engage in "retail commodity transactions"— any LTC transaction entered into on a leveraged,
margined or financed basis (as described above). Such transactions are deemed to be commodity futures under the Commodity Exchange Act
and subject to CFTC jurisdiction. Furthermore, the Sponsor believes that the Trust is not a commodity pool for purposes of the Commodity
Exchange Act. Consequently, Shareholders will not have the regulatory protections provided to Shareholders in Commodity Exchange Act-regulated
instruments or commodity pools.
Changes
in SEC policy could adversely impact the value of the Shares.
The
effect of any future regulatory change on the Trust or the digital assets held by the Trust is impossible to predict, but such change
could be substantial and adverse to the Trust and the value of the Shares. In particular, with the exception of funds that hold bitcoin,
ether and certain ether-based derivatives, the SEC has not yet approved the listing on a national securities exchange of any non-futures
based digital-asset focused exchange-traded fund ("ETF"). If the SEC were to approve any such ETF other than ours in the future,
such an ETF may be perceived to be a superior investment product offering exposure to digital assets compared to the Trust because the
value of the shares issued by such an ETF would be expected to more closely track the ETF's net asset value than do Shares of the
Trust, and investors may therefore favor investments in such ETFs over investments in the Trust. Any weakening in demand for the Shares
compared to digital asset ETF shares could cause the value of the Shares to decline.
Competing
industries may have more influence with policymakers than the digital asset industry, which could lead to the adoption of laws and regulations
that are harmful to the digital asset industry.
The
digital asset industry is relatively new, although its influence over public policy is increasing, and it does not have the same access
to policymakers and lobbying organizations in many jurisdictions compared to industries with which digital assets may be seen to compete,
such as banking, payments and consumer finance. Competitors from other, more established industries may have greater access to and influence
with governmental officials and regulators and may be successful in persuading these policymakers that digital assets require heightened
levels of regulation compared to the regulation of traditional financial services. As a result, new laws and regulations may be proposed
and adopted in the United States and elsewhere, or existing laws and regulations may be interpreted in new ways, that disfavor or impose
compliance burdens on the digital asset industry or digital asset platforms, which could adversely impact the value of LTC and therefore
the value of the Shares.
50
Regulatory
changes or other events in foreign jurisdictions may affect the value of the Shares or restrict the use of one or more digital assets,
mining activity or the operation of their networks or the digital asset trading platform market in a manner that adversely affects the
value of the Shares.
Various
foreign jurisdictions have, and may continue to adopt laws, regulations or directives that affect the digital asset network, the digital
asset markets, and their users, particularly digital asset trading platforms and service providers that fall within such jurisdictions'
regulatory scope. For example, if foreign jurisdictions in addition to China were to ban or otherwise restrict mining activity, including
by regulating or limiting manufacturers' ability to produce or sell semiconductors or hard drives in connection with mining, it
would have a material adverse effect on digital asset networks (including the Litecoin Network), the Digital Asset Market, and as a result,
impact the value of the Shares.
A
number of foreign jurisdictions have recently taken regulatory action aimed at digital asset activities. China has made transacting in
cryptocurrencies illegal for Chinese citizens in mainland China, and additional restrictions may follow. Both China and South Korea have
banned initial coin offerings entirely and regulators in other jurisdictions, including Canada, Singapore and Hong Kong, have opined that
initial coin offerings may constitute securities offerings subject to local securities regulations. The United Kingdom's Financial
Conduct Authority published final rules in October 2020 banning the sale of derivatives and exchange-traded notes that reference certain
types of digital assets, contending that they are "ill-suited" to retail investors citing extreme volatility, valuation challenges
and association with financial crime. A new law, the Financial Services and Markets Act 2023 ("FSMA"), received royal assent
in June 2023. The FSMA brings digital asset activities within the scope of existing laws governing financial institutions, markets and
assets. In addition, the Parliament of the European Union approved the text of MiCA in April 2023, establishing a regulatory framework
for digital asset services across the European Union. Certain parts of MiCA became effective as of June 2024 and the remainder will start
to apply as of December 2024. MiCA is intended to serve as a comprehensive regulation of digital asset markets and imposes various obligations
on digital asset issuers and service providers. The main aims of MiCA are industry regulation, consumer protection, prevention of market
abuse and upholding the integrity of digital asset markets.
Foreign
laws, regulations or directives may conflict with those of the United States and may negatively impact the acceptance of one or more digital
assets by users, merchants and service providers outside the United States and may therefore impede the growth or sustainability of the
digital asset economy in the European Union, China, Japan, Russia and the United States and globally, or otherwise negatively affect the
value of LTC. Moreover, other events, such as the interruption in telecommunications or internet services, cyber-related terrorist acts,
civil disturbances, war or other catastrophes, could also negatively affect the digital asset economy in one or more jurisdictions. For
example, Russia's invasion of Ukraine on February 24, 2022 led to volatility in digital asset prices, with an initial steep decline
followed by a sharp rebound in prices. The effect of any future regulatory change or other events on the Trust or LTC is impossible to
predict, and such change could be substantial and adverse to the Trust and the value of the Shares.
If
regulators or public utilities take actions that restrict or otherwise impact mining activities, there may be a significant decline in
such activities, which could adversely affect the Litecoin Network and the value of the Shares.
Concerns
have been raised about the electricity required to secure and maintain digital asset networks. For example, as of ________, 202_, over
1,005 tera hashes are performed every second in connection with mining on the Litecoin Network. Although measuring the electricity consumed
by this process is difficult because these operations are performed by various machines with varying levels of efficiency, the process
consumes a significant amount of energy. The operations of the Litecoin Network and other digital asset networks may also consume significant
amounts of energy. Further, in addition to the direct energy costs of performing calculations on any given digital asset network, there
are indirect costs that impact a network's total energy consumption, including the costs of cooling the machines that perform these
calculations.
Driven
by concerns around energy consumption and the impact on public utility companies, various states and cities have implemented, or are considering
implementing, moratoriums on mining activity in their jurisdictions. For example, in November 2022, New York imposed a two-year moratorium
on new proof-of-work mining permits at fossil fuel plants in the state. A significant reduction in mining activity as a result of such
actions could adversely affect the security of the Litecoin Network by making it easier for a malicious actor or botnet to manipulate
the Blockchain. See
"
Risk Factors Related to Digital Assets
—If a malicious
actor or botnet obtains control of more than 50% of the processing power on the Litecoin Network, or otherwise obtains control over the
Litecoin Network through its influence over core developers or otherwise, such actor or botnet could manipulate the Blockchain to adversely
affect the value of the Shares or the ability of the Trust to operate."
If regulators or public utilities take action that restricts
or otherwise impacts mining activities, such actions could result in decreased security of a digital asset network, including the Litecoin
Network, and consequently adversely impact the value of the Shares.
51
If
regulators subject an Authorized Participant, the Trust or the Sponsor to regulation as a money service business or money transmitter,
this could result in extraordinary expenses to the Authorized Participant, the Trust or the Sponsor and also result in decreased liquidity
for the Shares.
To
the extent that the activities of any Authorized Participant, the Trust or the Sponsor cause it to be deemed a "money services business"
under the regulations promulgated by FinCEN, such Authorized Participant, the Trust or the Sponsor may be required to comply with FinCEN
regulations, including those that would mandate the Authorized Participant, the Trust or the Sponsor to implement anti-money laundering
programs, make certain reports to FinCEN and maintain certain records. Similarly, the activities of an Authorized Participant, the Trust
or the Sponsor may require it to be licensed as a money transmitter or as a digital asset business, such as under the 'NYDFS'
BitLicense regulations or California's Digital Financial Assets Law, once effective.
Such
additional regulatory obligations may cause the Authorized Participant, the Trust or the Sponsor to incur extraordinary expenses. If the
Authorized Participant, the Trust or the Sponsor decided to seek the required licenses, there is no guarantee that they will timely receive
them. An Authorized Participant may instead decide to terminate its role as Authorized Participant of the Trust, or the Sponsor may decide
to discontinue and wind up the Trust. An Authorized Participant's decision to cease acting as such may decrease the liquidity of
the Shares, which could adversely affect the value of the Shares, and termination of the Trust in response to the changed regulatory circumstances
may be at a time that is disadvantageous to the Shareholders.
Additionally,
to the extent an Authorized Participant, the Trust or the Sponsor is found to have operated without appropriate state or federal licenses,
or registrations, it may be subject to investigation, administrative or court proceedings, and civil or criminal monetary fines and penalties,
all of which would harm the reputation of the Trust or the Sponsor, decrease the liquidity, and have a material adverse effect on the
price of, the Shares.
As LTC and the
broader digital assets ecosystem have grown, they have begun to attract more regulatory attention around the globe. The future regulatory
environment is uncertain and may vary by country or even within countries. Failure to appropriately regulate the digital assets ecosystem
could stifle innovation, which could adversely impact the value of the Shares.
Current
and future legislation, CFTC and SEC rulemaking and other regulatory developments may impact the manner in which LTC is treated. In particular,
LTC may be classified by the CFTC as a "commodity interest" under the CEA or may be classified by the SEC as a "security"
under U.S. federal securities laws. The Sponsor and the Trust cannot be certain as to how future regulatory developments will impact the
treatment of LTC under the law. In the face of such developments, the required registrations and compliance steps may result in extraordinary,
nonrecurring expenses to the Trust. If the Sponsor decides to terminate the Trust in response to the changed regulatory circumstances,
the Trust may be dissolved or liquidated at a time that is disadvantageous to Shareholders.
To
the extent that LTC is deemed to fall within the definition of a "commodity interest" under the CEA, the Trust and the Sponsor
may be subject to additional regulation under the CEA and CFTC regulations. The Sponsor may be required to register as a commodity pool
operator or commodity trading adviser with the CFTC and become a member of the National Futures Association and may be subject to additional
regulatory requirements with respect to the Trust, including disclosure and reporting requirements. These additional requirements may
result in extraordinary, recurring and/or nonrecurring expenses of the Trust, thereby materially and adversely impacting the Shares. If
the Sponsor determines not to comply with such additional regulatory and registration requirements, the Sponsor will terminate the Trust.
Any such termination could result in the liquidation of the Trust's LTC at a time that is disadvantageous to Shareholders.
To
the extent that LTC is determined to be a security under U.S. federal securities laws, the Trust and the Sponsor may be subject to additional
requirements under the Investment Company Act and the Sponsor may be required to register as an investment adviser under the Investment
Advisers Act. Such additional registration may result in extraordinary, recurring and/or non-recurring expenses of the Trust, thereby
materially and adversely impacting the Shares. If the Sponsor determines not to comply with such additional regulatory and registration
requirements, the Sponsor will terminate the Trust. Any such termination could result in the liquidation of the Trust's LTC at a
time that is disadvantageous to Shareholders.
It may be illegal
now, or in the future, to acquire, own, hold, sell or use LTC in one or more countries, and ownership of, holding or trading in the Shares
may also be considered illegal and subject to sanction.
Although currently LTC is
not regulated or is lightly regulated in most countries, including the United States, one or more countries such as China, India or Russia
may take regulatory actions in the future that severely restricts the right to acquire, own, hold, sell or use LTC or to exchange LTC
for fiat currency. Such an action may also result in the restriction of ownership, holding or trading in the Shares. Such a restriction
could result in the termination and liquidation of the Trust at a time that is disadvantageous to Shareholders, or may adversely affect
an investment in the Shares.
52
Due
to the largely unregulated nature and lack of transparency surrounding the operations of digital asset trading platforms, they may experience
fraud, market manipulation, business failures, security failures or operational problems, which may adversely affect the value of LTC
and, consequently, the value of the Shares.
Digital
asset trading platforms are relatively new and, in many ways, are not subject to, or may not comply with, regulation in relevant jurisdictions
in a manner similar to other regulated trading platforms, such as national securities exchanges or designated contract markets. While
many prominent digital asset trading platforms provide the public with significant information regarding their on-chain activities, ownership
structure, management teams, corporate practices, cybersecurity practices and regulatory compliance, many other digital asset trading
platforms do not provide this information. Furthermore, while digital asset trading platforms are and may continue to be subject to federal
and state licensing requirements in the United States, digital asset trading platforms do not currently appear to be subject to regulation
in a similar manner as other regulated trading platforms, such as national securities exchanges or designated contract markets. As a result,
the marketplace may lose confidence in digital asset trading platforms, including prominent trading platforms that handle a significant
volume of LTC trading.
Many
digital asset trading platforms both in the United States and abroad are unlicensed, not subject to, or not in compliance with, regulation
in relevant jurisdictions, or operate without extensive supervision by governmental authorities. In particular, those located outside
the United States may be subject to significantly less stringent regulatory and compliance requirements in their local jurisdictions and
may take the position that they are not subject to laws and regulations that would apply to a national securities exchange or designated
contract market in the United States, or may, as a practical matter, be beyond the ambit of U.S. regulators. As a result, trading activity
on or reported by these digital asset trading platforms is generally significantly less regulated than trading activity on or reported
by regulated U.S. securities and commodities markets, and may reflect behavior that would be prohibited in regulated U.S. trading venues.
For example, in 2022 one report claimed that trading volumes on digital asset trading platforms were inflated by over 70% due to false
or non-economic trades, with specific focus on unlicensed trading platforms located outside of the United States. Such reports may indicate
that the digital asset trading platform market is significantly smaller than expected and that the U.S. makes up a significantly larger
percentage of the digital asset trading platform market than is commonly understood, or that a much larger portion of digital asset market
activity takes place on decentralized finance platforms than is commonly understood. Nonetheless, any actual or perceived false trading
in the digital asset trading platform market, and any other fraudulent or manipulative acts and practices, could adversely affect the
value of LTC and/or negatively affect the market perception of LTC, which could in turn adversely impact the value of the Shares.
The
SEC has also identified possible sources of fraud and manipulation in the digital asset markets generally, including, among others (1)
"wash-trading"; (2) persons with a dominant position in LTC manipulating LTC pricing; (3) hacking of the Litecoin Network
and trading platforms; (4) malicious control of the Litecoin Network; (5) trading based on material, non-public information (for example,
plans of market participants to significantly increase or decrease their holdings in LTC, new sources of demand for LTC) or based on the
dissemination of false and misleading information; (6) manipulative activity involving purported "stablecoins," including
Tether; and (7) fraud and manipulation at digital asset markets. The use or presence of such acts and practices in the digital asset markets
could, for example, falsely inflate the volume of LTC present in the digital asset markets or cause distortions in the price of LTC, among
other things that could adversely affect the Trust or cause losses to Shareholders. Moreover, tools to detect and deter fraudulent or
manipulative trading activities, such as market manipulation, front-running of trades, and wash-trading, may not be available to or employed
by digital asset markets, or may not exist at all. Many digital asset markets also lack certain safeguards put in place by exchanges for
more traditional assets to enhance the stability of trading on the exchanges and prevent "flash crashes," such as limit-down
circuit breakers. As a result, the prices of LTC on digital asset markets may be subject to larger and/or more frequent sudden declines
than assets traded on more traditional exchanges.
In
addition, over the past several years, some digital asset trading platforms have been closed, been subject to criminal and civil litigation
and have entered into bankruptcy proceedings due to fraud and manipulative activity, business failure and/or security breaches. In many
of these instances, the customers of such digital asset trading platforms were not compensated or made whole for the partial or complete
losses of their account balances in such digital asset trading platforms. In some instances, customers are made whole only in dollar terms
as of the digital asset trading platform's date of failure, rather than on a digital asset basis, meaning customers may still lose
out on any price increase in digital assets.
53
While
smaller digital asset trading platforms are less likely to have the infrastructure and capitalization that make larger digital asset trading
platforms more stable, larger digital asset trading platforms are more likely to be appealing targets for hackers and malware and their
shortcomings or ultimate failures are more likely to have contagion effects on the digital asset ecosystem, including on the price of
LTC, and therefore may be more likely to be targets of regulatory enforcement action. For example, in February 2014, Mt. Gox, the largest
digital asset trading platform at the time, halted withdrawals of bitcoin and subsequently filed for bankruptcy protection in Japan following
an exploit that resulted in the loss of several hundred thousand bitcoin. In the two weeks following the halt of bitcoin withdrawals from
Mt. Gox, the value of one bitcoin fell on other trading platforms from around $795 to $578. Failure and shortcomings of large digital
asset trading platforms have since continued; in January 2015, Bitstamp announced that approximately 19,000 bitcoin had been stolen from
its operational or "hot" wallets, and in August 2016, it was reported that almost 120,000 bitcoin then worth around $78 million
were stolen from Bitfinex. The value of bitcoin and other digital assets immediately decreased over 10% following reports of the theft
at Bitfinex. Regulatory enforcement actions have followed, such as in July 2017, when FinCEN assessed a $110 million fine against BTC-E,
a now defunct digital asset trading platform, for facilitating crimes such as drug sales and ransomware attacks. In addition, in December
2017, Yapian, the operator of Seoul-based digital asset trading platform Youbit, suspended digital asset trading and filed for bankruptcy
following an exploit that resulted in a loss of 17% of Yapian's assets. In January 2018, the Japanese digital asset trading platform,
Coincheck, was exploited, resulting in losses of approximately $535 million, and in February 2018, the Italian digital asset trading platform,
Bitgrail, was exploited, resulting in approximately $170 million in losses. In May 2019, one of the world's largest digital asset
trading platforms, Binance, was exploited, resulting in losses of approximately $40 million. More recently, in November 2022, FTX, another
of the world's largest digital asset trading platforms, filed for bankruptcy protection and subsequently halted customer withdrawals
as well as trading on its FTX.US platform. Fraud, security failures and operational problems all played a role in FTX's issues and
downfall. Moreover, digital asset trading platforms have been a subject of enhanced regulatory and enforcement scrutiny, and digital asset
markets have experienced continued instability, following the failure of FTX. In particular, in June 2023, the SEC brought the Binance
Complaint and Coinbase Complaint, alleging that Binance and Coinbase operated unregistered securities exchanges, brokerages and clearing
agencies. In addition, in November 2023, the SEC brought the Kraken Complaint, alleging that ' operated as an unregistered securities
exchange, brokerage and clearing agency. Negative perception, a lack of stability and standardized regulation in the digital asset markets
and/or the closure or temporary shutdown of digital asset trading platforms due to fraud, business failure, security breaches or government
mandated regulation, and associated losses by customers, may reduce confidence in the Litecoin Network and result in greater volatility
in the prices of LTC. Furthermore, the closure or temporary shutdown of a digital asset trading platform used in calculating the Index
Price may result in a loss of confidence in the Trust's ability to determine its NAV on a daily basis. These potential consequences
of such a digital asset trading platform's failure could adversely affect the value of the Shares.
The ongoing activities
of the Trust may generate tax liabilities for Shareholders.
As described below under
"United
States Federal Income Tax Consequences—Taxation of U.S. Shareholders,"
it is expected that each Shareholder will include
in the computation of their taxable income their proportionate share of the taxable income and expenses of the Trust and amounts realized
in connection with the use of LTC or the sale of LTC to pay Trust expenses or facilitate redemption transactions. The Trust does not anticipate
making distributions to Shareholders, so any tax liability that a Shareholder incurs as a result of holding Shares will need to be satisfied
from some other source of funds. Sales of LTC to fund cash redemptions are expected to result in gains and losses, with such gains and
losses expected to be treated as incurred by the Shareholder that is being redeemed. These gains or losses generally would equal the difference
between the amount realized from the sale of the LTC and the Shareholder's tax basis for the portion of the Shareholder's
pro rata share of the LTC held in the Trust that is sold to fund the redemption, as determined in the manner described above. A redemption
of some or all of a Shareholder's Shares in exchange for the cash received from such sale is not expected to be treated as a separate
taxable event for the Shareholder. If a Shareholders sells Shares in order to raise funds to satisfy such a tax liability, the sale itself
may generate additional taxable gain or loss.
The tax treatment of
LTC and transactions involving LTC for United States federal income tax purposes may change.
Under current IRS guidance,
LTC is treated as property, not as currency, for U.S. federal income tax purposes and transactions involving payment in LTC in return
for goods and services are treated as barter exchanges. Such exchanges result in capital gain or loss measured by the difference between
the price at which LTC is exchanged and the taxpayer's basis in the LTC. However, because LTC is a new technological innovation,
because IRS guidance has taken the form of administrative pronouncements that may be modified without prior notice and comment, and because
there is as yet little case law on the subject, the U.S. federal income tax treatment of an investment in LTC or in transactions relating
to investments in LTC may change from that described in this Prospectus, possibly with retroactive effect. Any such change in the U.S.
federal income tax treatment of LTC may have a negative effect on prices of LTC and may adversely affect the value of the Shares. In this
regard, the IRS has indicated that it has made it a priority to issue additional guidance related to the taxation of virtual currency
transactions, such as transactions involving LTC. While it has started to issue such additional guidance, whether any future guidance
will adversely affect the U.S. federal income tax treatment of an investment in LTC or in transactions relating to investments in LTC
is unknown. Moreover, future developments that may arise with respect to digital currencies may increase the uncertainty with respect
to the treatment of digital currencies for U.S. federal income tax purposes.
The tax treatment of
LTC and transactions involving LTC for state and local tax purposes is not settled.
Because LTC is a new technological
innovation, the tax treatment of LTC for state and local tax purposes, including, without limitation state and local income and sales
and use taxes, is not settled. It is uncertain what guidance, if any, on the treatment of LTC for state and local tax purposes may be
issued in the future. A state or local government authority's treatment of LTC may have negative consequences, including the imposition
of a greater tax burden on investors in LTC or the imposition of a greater cost on the acquisition and disposition of LTC generally. Any
such treatment may have a negative effect on prices of LTC and may adversely affect the value of the Shares.
54
A "fork"
of the Litecoin Blockchain or an airdrop could result in Shareholders incurring a tax liability.
If a fork occurs in the Litecoin
Blockchain, the Trust Agreement requires that the Sponsor analyze the transaction according to several criteria and promptly determine
which digital asset network is generally accepted as the Litecoin Blockchain and should therefore be considered the appropriate network
for the Trust's purposes. The Sponsor will base its determination on a variety of then-relevant factors, including, but not limited
to, the Sponsor's beliefs regarding expectations of the core developers of LTC, users, services, businesses, miners and other constituencies,
as well as the actual continued acceptance of, validating power on, and community engagement with, the Litecoin Blockchain. The outcome
of such determination shall determine which asset is "LTC" and which is the Forked Asset, an IR Asset. Pursuant to the Trust
Agreement, the Trust has explicitly disclaimed all Incidental Rights and IR Assets, including Forked Assets. Such assets are not considered
assets of the Trust at any point in time. Once it has been determined by the Sponsor which asset is LTC and which is the Forked Asset,
the Sponsor will, as soon as practicable, and, if possible, immediately, distribute the Forked Asset to the Sponsor. Once acquired, the
Sponsor may take any lawful action necessary or desirable in connection with its acquisition of such asset. In the event that the Sponsor
decides to sell the Forked Asset, it will seek to do so for cash. This may be a sale of the Forked Asset directly in exchange for cash,
or in exchange for another digital asset which may subsequently be exchanged for cash. The Sponsor would then contribute that cash back
to the Trust, which in turn would distribute the cash to DTC to be distributed to Shareholders in proportion to the number of Shares owned.
The receipt of cash in connection with this distribution may cause Shareholders to incur a U.S. federal, state, local, or foreign tax
liability. In addition, the IRS may not accept the Trust's position that disclaimed Incidental Rights or IR Assets do not represent
a taxable incident. Any tax liability could adversely impact an investment in the Shares and may require Shareholders to prepare and file
tax returns. Any tax liability could adversely impact an investment in the Shares and may require Shareholders to prepare and file tax
returns.
Under the IRS guidance on
digital assets, hard forks, airdrops and similar occurrences with respect to digital assets will under certain circumstances be treated
as taxable events giving rise to ordinary income. In the absence of guidance to the contrary, it is possible that any such income recognized
by a U.S. tax-exempt Shareholder would constitute "unrelated business taxable income" ("UBTI"). A tax-exempt Shareholder
should consult its tax adviser regarding whether such Shareholder may recognize UBTI as a consequence of an investment in Shares.
Non-U.S. Holders may
be subject to U.S. federal withholding tax on income derived from forks, airdrops and similar occurrences.
IRS guidance on digital assets
does not address whether income recognized by a non-U.S. person as a result of a fork, airdrop or similar occurrence could be subject
to the 30% withholding tax imposed on U.S.-source "fixed or determinable annual or periodical" income. Non-U.S. Shareholders
should assume that, in the absence of guidance, a withholding agent (including the Sponsor) is likely to withhold 30% of any such income
recognized by a non-U.S. Shareholder in respect of its Shares, including by deducting such withheld amounts from proceeds that such non-U.S.
Shareholder would otherwise be entitled to receive in connection with a distribution of cash in connection with the Sponsor's sale
of an IR Right and/or IR Asset and contributing such cash back to the Trust.
The intended tax treatment
of the Trust will limit the flexibility of the Trust's investment decisions.
The Trust is intended to be
a grantor trust for Federal income tax purposes. A grantor trust is not permitted to change the investment of the Shareholders to take
advantage of market fluctuations. Thus, the Sponsor may allow the Trust to hold when an actively managed fund would sell. The Sponsor
may distribute proceeds when an actively managed fund would reinvest the proceeds. In addition, a fund treated as a grantor trust may
not participate in trading or lending activity without raising a risk of change in status. This means that the returns of the Trust may
be less than a successfully actively managed fund.
55
Risk Factors Related to the Index
The Index and
LRR each have a limited history.
The Index, which was launched
on ________, 202_, is based on materially the same methodology (except calculation time) as the LRR, which was first introduced on ________,
202_. The Index and the LRR have a limited history and their value is an average composite reference rate calculated using volume-weighted
trading price data from the Selected Exchanges. A longer history of actual performance through various economic and market conditions
would provide greater and more reliable information for an investor to assess Index's performance. The Benchmark Administrator has
substantial discretion at any time to change the methodology used to calculate the Index, including the Selected Exchanges that contribute
prices to the Trust's NAV. The Benchmark Administrator does not have any obligation to take into consideration the needs of the
Trust, the Shareholders, or anyone else in connection with such changes. There is no guarantee that the methodology currently used in
calculating the Index will appropriately track the price of LTC in the future. Neither Compass Financial Technologies SA nor the Benchmark
Administrator has any obligation to take into consideration the needs of the Trust or the Shareholders in determining, composing, or calculating
the Index or in the selection of the Selected Exchanges used. For more information on how the Selected Exchanges are chosen, see
"THE
TRUST AND LTC PRICES —
Compass Crypto Reference Index Litecoin - 4pm NY Time.
"
Although the Index is intended
to accurately capture the market price of LTC, third parties may be able to purchase and sell LTC on public or private markets not included
among the Selected Exchanges, and such transactions may take place at prices materially higher or lower than the Index price. Moreover,
there may be variances in the price of LTC on the various Selected Exchanges, including as a result of differences in fee structures or
administrative procedures on different Selected Exchanges. While the Index provides a U.S. dollar-denominated price of LTC based on the
volume-weighted price of LTC on certain Selected Exchanges, at any given time, the prices on each such Selected Exchange may not be equal
to the price of LTC as represented by the Index. It is possible that the price of LTC on the Selected Exchanges could be materially higher
or lower than the Index price. To the extent the Index price differs materially from the actual prices available on a Selected Exchange,
or from the global market price of LTC, the price of the Shares may no longer track, whether temporarily or over time, the global market
price of LTC, which could adversely affect an investment in the Trust by reducing investors' confidence in the Shares' ability
to track the market price of LTC. To the extent such prices differ materially from the Index price, investors may lose confidence in the
Shares' ability to track the market price of LTC, which could adversely affect the value of the Shares.
The pricing sources (Selected
Exchanges) used by the Index are digital asset trading venues that facilitate the buying and selling of LTC and other digital assets.
Although many pricing sources refer to themselves as "exchanges," they are not registered with, or supervised by, the SEC
or the CFTC and they do not meet the regulatory standards of a national securities exchange or designated contract market. For these reasons,
among others, purchases and sales of LTC may be subject to temporary distortions or other disruptions due to various factors, including
the lack of liquidity in the markets and government regulation and intervention. These circumstances could affect the price of LTC used
in Index calculations and, therefore, could adversely affect the LTC price as reflected by the Index.
The Selected Exchanges may
change over time. For more information on the inclusion criteria for Selected Exchanges in the Index, see
"THE TRUST AND LTC
PRICES —
Compass Crypto Reference Index Litecoin - 4pm NY Time.
"
The Index is based on various
inputs which may include price data from various third-party digital asset trading platforms. Neither Compass Financial Technologies SA
nor the Benchmark Administrator guarantees the validity of any of these inputs, which may be subject to technological error, manipulative
activity, or fraudulent reporting from their initial source.
The Trust utilizes the Index
to establish its NAV and NAV per Share. In the event that the Index is incorrectly calculated, is not timely calculated or changes its
calculation methodology in the future, such an occurrence may adversely impact an investment in the Shares or the Trust's operations.
56
Although the Index and LRR
are designed to accurately capture the market price of LTC, third parties may be able to purchase and sell LTC on public or private markets
not included among the Selected Exchanges of the Index and LRR, and such transactions may take place at prices materially higher or lower
than the level of the Index used to establish the NAV. To the extent such prices differ materially from the level of the Index used to
establish the NAV, investors may lose confidence in the Shares' ability to track the market price of LTC, which could adversely
affect an investment in the Shares.
The Benchmark
Administrator could experience systems failures or errors.
If the computers or other
facilities of the Benchmark Administrator, data providers and/or relevant stock exchange malfunction for any reason, calculation and dissemination
of the Index may be delayed. Errors in Index data, the Index computations and/or construction may occur from time to time and may not
be identified and/or corrected for a period of time or at all, which may have an adverse impact on the Trust and the Shareholders. Any
of the foregoing may lead to errors in the Index, which may lead to a different investment outcome for the Trust and its Shareholders
than would have been the case had such events not occurred. The Index is the reference price for calculating the Trust's NAV. Consequently,
losses or costs associated with the Index's errors or other risks described above will generally be borne by the Trust and the Shareholders
and neither the Sponsor nor its affiliates or agents make any representations or warranties regarding the foregoing.
If the Index is not available,
the Trust's holdings may be fair valued in accordance with the policy approved by the Sponsor. If the Index is not available, or
if the Sponsor determines, in its sole discretion, that the Index does not reflect an accurate LTC price, the Trust's holdings may
be "fair valued" in accordance with the valuation policies approved by the Sponsor. Those valuation policies stipulate that
when seeking to fair value LTC, the Sponsor may apply all available factors the Sponsor deems relevant at the time of the determination,
and may be based on analytical values determined by the Sponsor using third-party valuation models. Pursuant thereto, the Sponsor expects
to utilize a volume-weighted average price or volume-weighted median price of LTC provided by a secondary pricing source ("Secondary
Source"). If a Secondary Source is not available or the Sponsor in its sole discretion determines the Secondary Sources are unreliable,
the price set by the Trust's principal market as of 4:00 p.m. ET, on the valuation date would be considered for utilization. In
the event the principal market price is not available or the Sponsor in its sole discretion determines the principal market valuation
is unreliable the Sponsor will use its best judgment to determine a good faith estimate of fair value based upon all available factors.
The Sponsor does not anticipate that the need to "fair value" LTC will be a common occurrence.
To the extent the valuation
determined in accordance with the policy approved by the Sponsor differs materially from the actual market price of LTC, the price of
the Shares may no longer track, whether temporarily or over time, the global market price of LTC, which could adversely affect an investment
in the Trust by reducing investors' confidence in the Shares' ability to track the global market price of LTC. To the extent
such prices differ materially from the market price for LTC, investors may lose confidence in the Shares' ability to track the market
price of LTC, which could adversely affect the value of the Shares. The Sponsor does not anticipate that the need to "fair value"
LTC will be a common occurrence.
The Index could
fail to track the global LTC price, and a failure of the Index could adversely affect the value of the Shares.
Although the Index is intended
to accurately capture the market price of LTC, third parties may be able to purchase and sell LTC on public or private markets not included
among the Selected Exchanges, and such transactions may take place at prices materially higher or lower than the Index price. Moreover,
there may be variances in the price of LTC on the various Selected Exchanges, including as a result of differences in fee structures or
administrative procedures on different Selected Exchanges. While the Index provides a U.S. dollar-denominated composite for the price
of LTC based on the volume-weighted price of LTC on certain Selected Exchanges, at any given time, the prices on each such Selected Exchange
or pricing source may not be equal to the price of LTC as represented by the Index. It is possible that the price of LTC on the Selected
Exchanges could be materially higher or lower than the Index price. To the extent the Index price differs materially from the actual prices
available on a Selected Exchange, or from the global market price of LTC, the price of the Shares may no longer track, whether temporarily
or over time, the global market price of LTC, which could adversely affect an investment in the Trust by reducing investors' confidence
in the Shares' ability to track the market price of LTC. To the extent such prices differ materially from the Index price, investors
may lose confidence in the Shares' ability to track the market price of LTC, which could adversely affect the value of the Shares.
57
The Sponsor can
discontinue using the Index and use a different pricing or valuation methodology instead.
The Sponsor, in its sole discretion,
may cause the Trust to price its portfolio based upon an index, benchmark or standard other than the Index at any time, with prior notice
to the Shareholders, if investment conditions change or the Sponsor believes that another index, benchmark or standard better aligns with
the Trust's investment objective and strategy. The Sponsor may make this decision for a number of reasons, including, but not limited
to, a determination that the Index price of LTC differs materially from the global market price of LTC and/or that third parties are able
to purchase and sell LTC on public or private markets not included among the Selected Exchanges, and such transactions may take place
at prices materially higher or lower than the Index price. The Sponsor, however, is under no obligation whatsoever to make such changes
in any circumstance. In the event that the Sponsor intends to establish the Trust's NAV by reference to an index, benchmark or standard
other than the Index, it will provide Shareholders with notice in a prospectus supplement and/or through a current report on Form 8-K
or in the Trust's annual or quarterly reports.
The Index price
used to calculate the value of the Trust's LTC may be volatile, adversely affecting the value of the Shares.
The price of LTC on public
digital asset trading platforms has a limited history, and during this history, LTC prices on the digital asset markets more generally,
and on digital asset trading platforms individually, have been volatile and subject to influence by many factors, including operational
interruptions. While the Index is designed to limit exposure to the interruption of individual digital asset trading platforms, the Index
price, and the price of LTC generally, remains subject to volatility experienced by digital asset trading platforms, and such volatility
could adversely affect the value of the Shares.
Furthermore, because the number
of liquid and credible digital asset trading platforms is limited, the Index will necessarily be composed of a limited number of digital
asset trading platforms. If a digital asset trading platform were subjected to regulatory, volatility or other pricing issues, the Benchmark
Administrator would have limited ability to remove such digital asset trading platform from the Index, which could skew the price of LTC
as represented by the Index. Trading on a limited number of digital asset trading platforms may result in less favorable prices and decreased
liquidity of LTC and, therefore, could have an adverse effect on the value of the Shares.
The Index price
being used to determine the NAV of the Trust may not be consistent with GAAP. To the extent that the Trust's financial statements
are determined using a different pricing source that is consistent with GAAP, the NAV reported in the Trust's periodic financial
statements may differ, in some cases significantly, from the Trust's NAV determined using the Index pricing.
The Trust will determine the
NAV of the Trust on each business day based on the value of LTC as reflected by the Index. The methodology used to calculate the Index
price to value LTC in determining the NAV of the Trust may not be deemed consistent with GAAP. To the extent the methodology used to calculate
the Index is deemed inconsistent with GAAP, the Trust will utilize an alternative GAAP-consistent pricing source for purposes of the Trust's
periodic financial statements. Creation and redemption of Baskets, the Sponsor Fee and other expenses borne by the Trust will be determined
using the Trust's NAV determined daily based on the Index. Such NAV of the Trust determined using the Index price may differ, in
some cases significantly, from the NAV reported in the Trust's periodic financial statements.
58
The Index is subject
to the limitations of its methodology and the LTC market.
Though
the Index is designed to be representative of the LTC market or otherwise align with its stated objective, it may not be representative
in every case or achieve its stated objective in all instances. The Index is designed and calculated strictly to follow the rules of its
methodology, and any Index price or other output is limited in its usefulness to such design and calculation. In addition, the Index will
necessarily be composed of a limited number of potential principal markets, and thus the Index may not reflect the value of LTC on crypto
exchanges not considered in the Index. Furthermore, the Benchmark Administrator does not publicize its methodology at any given time,
which may limit the ability of investors to evaluate the LTC prices that establish the value of the Index.
The
LTC market can be volatile, including those market interests that the Index intends to measure or upon which the Index is dependent in
order to achieve its stated objective. For example, illiquidity can have an impact on the quality or amount of data available to the Benchmark
Administrator for calculation, and may cause the Index to produce unpredictable or unanticipated results. In addition, market trends and
changes to market structure may render the objective of the Index unachievable or cause the Index to become impractical to replicate.
Risks Related
to Pricing.
The Trust's portfolio
will be priced, including for purposes of determining the NAV, based upon the Index. The price of LTC in U.S. dollars or in other currencies
available from other data sources may not be equal to the prices used to calculate the NAV.
The NAV of the Trust will
change as fluctuations occur in the market price of the Trust's LTC holdings as reflected in the Index. Shareholders should be aware
that the public trading price per Share may be different from the NAV for a number of reasons, including price volatility; trading activity;
the closing of LTC trading platforms due to fraud, failure, security breaches or otherwise; and the fact that supply-and-demand forces
at work in the secondary trading market for Shares are related, but not identical, to the supply-and-demand forces influencing the market
price of LTC.
Shareholders also should note
that the size of the Trust in terms of total LTC held may change substantially over time and as Baskets are created and redeemed.
In the event that the value
of the Trust's LTC holdings or LTC holdings per Share is incorrectly calculated, neither the Sponsor nor the Administrator will
be liable for any error and such misreporting of valuation data could adversely affect the value of the Shares.
Index tracking risk.
Although the Trust will attempt
to structure its portfolio so that investments track the Index, the Trust may not achieve the desired degree of correlation between its
performance and that of the Index and thus may not achieve its investment objective. The difference in performance may be due to factors
such as fees, transaction costs, redemptions of, and subscriptions for, Shares, pricing differences or the cost to the Trust of complying
with various new or existing regulatory requirements.
The value of LTC as
reflected by the Index may be subject to momentum pricing due to speculation regarding future appreciation in value, leading to greater
volatility which could adversely affect an investment in the Shares.
Momentum pricing typically
is associated with growth stocks and other assets whose valuation, as determined by the investing public, accounts for anticipated future
appreciation in value. The Index is determined using data from various LTC Exchanges. The Sponsor believes that momentum pricing of LTC
has resulted, and may continue to result, in speculation regarding future appreciation in the value of LTC, inflating and making the Index
more volatile. As a result, LTC may be more likely to fluctuate in value due to changing investor confidence in future appreciation or
depreciation in the Index, which could adversely affect an investment in the Shares.
59
Risk Factors
Related to Potential Conflicts of Interest
Potential conflicts
of interest may arise among the Sponsor or its affiliates and the Trust. The Sponsor and its affiliates have no fiduciary duties to the
Trust and its Shareholders, which may permit them to favor their own interests to the detriment of the Trust and its Shareholders.
The Sponsor will manage the
business and affairs of the Trust. Conflicts of interest may arise among the Sponsor and its affiliates, including the Benchmark Administrator
and the Authorized Participants, on the one hand, and the Trust and its Shareholders, on the other hand. As a result of these conflicts,
the Sponsor may favor its own interests and the interests of its affiliates over the Trust and its Shareholders. These potential conflicts
include, among others, the following:
●
The Sponsor has no fiduciary duties to, and is allowed to take into account the interests of parties other than, the Trust and its Shareholders in resolving conflicts of interest;
●
The Trust has agreed to indemnify the Sponsor and its affiliates pursuant to the Trust Agreement;
●
The Sponsor is responsible for allocating its own limited resources among different clients and potential future business ventures, to each of which it owes fiduciary duties;
●
The Sponsor may select service providers that are affiliates, such as ________, which may create or give the appearance of a conflict of interest with Shareholders' best interest;
●
The Sponsor's staff also services affiliates of the Sponsor and their respective clients and cannot devote all of its, or their, respective time or resources to the management of the business and affairs of the Trust;
●
The Sponsor, its affiliates and their officers and employees are not prohibited from engaging in other businesses or activities, including those that might be in direct competition with the Trust;
●
There is an absence of arm's-length negotiation with respect to certain terms of the Trust, and, where applicable, there has been no independent due diligence conducted with respect to this offering; and
●
The Sponsor decides whether to retain separate counsel, accountants or others to perform services for the Trust.
By investing in the Shares,
investors agree and consent to the provisions set forth in the Trust Agreement. See "Description of the Trust Agreement."
For a further discussion of
the conflicts of interest among the Sponsor, Authorized Participants, Benchmark Administrator, Custodians, Cash Custodian, Trust and others,
see "Conflicts of Interest."
Prime Broker.
The Prime Broker may have
actual or potential conflicts of interest in connection with providing Prime Broker Services. The Prime Broker provides various services
to the Trust, including custody and settlement. The Prime Broker may also act as a LTC Trading Counterparty, meaning that it buys and
sells LTC from and to the Trust in connection with the creation and redemption of Baskets. This dual role may create a situation where
the interests of the Prime Broker do not align with the interests of Shareholders. As a result, the Prime Broker may have an incentive
to favor its own interests and interests of its affiliates over those of the Trust.
The Sponsor has no control
over the actions of the Prime Broker and relies on the Prime Broker to act in good faith and in compliance with applicable laws and regulations
and the Prime Broker Agreement, which requires the Prime Broker to have in place certain policies and procedures designed to mitigate
such conflicts. However, there can be no assurance that the Prime Broker will not abuse its dual roles or that the Sponsor will be able
to detect, prevent, or remedy any such abuse. The Trust may also have limited recourse or ability to enforce its rights against the Prime
Broker in the event of a dispute or breach. Therefore, the Prime Broker's conflicts of interest may adversely affect the Trust's
operations and performance, and may result in losses or liabilities for the Trust. See "The Prime Broker and the Trade Credit Lender."
Affiliates of the Sponsor
may invest in or trade LTC without regard to the interests of the Trust or its Shareholders.
Affiliates of the Sponsor
have substantial direct investments in LTC. Such affiliates of the Sponsor are permitted to manage such investments, taking into account
their own interests, without regard to the interests of the Trust or its Shareholders. Affiliates of the Sponsor may obtain exposure to
LTC through investment in the Shares.
To the extent that any substantial
investment in LTC is initiated, materially increased or materially reduced, such investment can affect the LTC Index Price. The initiation
of, or material increases in, a substantial investment in LTC may result in an increase in the LTC Index Price. A material reduction in
a substantial investment may result in a decrease in the LTC Index Price, having a negative impact on the value of Shares. See "Conflicts
of Interest—Proprietary Trading/Other Clients."
60
Shareholders cannot
be assured of the Sponsor's continued services, the discontinuance of which may be detrimental to the Trust.
Shareholders cannot be assured
that the Sponsor will be willing or able to continue to serve as sponsor to the Trust for any length of time. If the Sponsor discontinues
its activities on behalf of the Trust and a substitute sponsor is not appointed, the Trust will terminate and liquidate the LTC held by
the Trust.
Appointment of a substitute
sponsor will not guarantee the Trust's continued operation, successful or otherwise. Because a substitute sponsor may have no experience
managing a digital currency financial vehicle, a substitute sponsor may not have the experience, knowledge or expertise required to ensure
that the Trust will operate successfully or to continue to operate at all. Therefore, the appointment of a substitute sponsor may not
necessarily be beneficial to the Trust or an investment in the Shares and the Trust may terminate. See "Conflicts of Interest—The
Sponsor."
The development and
commercialization of the Trust is subject to competitive pressures.
The Trust and the Sponsor
face competition with respect to the creation of competing products. The Sponsor's competitors may have greater financial, technical
and human resources than the Sponsor. Smaller or early-stage companies may also prove to be effective competitors, particularly through
collaborative arrangements with large and established companies. In addition, the timing of the Trust in reaching the market and the fee
structure of the Trust relative to similar products may have a detrimental effect on the scale and sustainability of the Trust. Accordingly,
the Sponsor's competitors may commercialize a product involving LTC more rapidly or effectively than the Sponsor is able to, which
could adversely affect the Sponsor's competitive position, the likelihood that the Trust will achieve initial market acceptance
and the Sponsor's ability to generate meaningful revenues from the Trust, which in turn could cause the Sponsor to dissolve and
terminate the Trust.
In addition, to the extent
that the Trust incurs transaction expenses in connection with the creation and redemption process, litigation expenses, indemnification
obligations under the Trust's service provider agreements and other extraordinary expenses that are not borne by the Sponsor, such
expenses will be borne by the Trust. To the extent that the Trust fails to attract a sufficiently large amount of investors, the effect
of such expenses on the value of the Shares may be significantly greater than would be the case if the Trust had attracted more assets.
The Custodians owe no
fiduciary duties to the Trust or the Shareholders, is not required to act in their best interest and could resign or be removed by the
Sponsor, which could trigger early termination of the Trust.
Neither of the Custodians
is a trustee for, and owes no fiduciary duties to, the Trust or the Shareholders. In addition, the Custodians have no duty to continue
to act as a custodian of the Trust. The Custodians can terminate their role as custodian for any reason whatsoever upon the notice period
provided under the relevant Custody Agreement. The Custodians may also be terminated. If the Custodians resign or are removed without
replacement such that the Trust does not have an available custody solution for its LTC, the Trust will dissolve in accordance with the
terms of the Trust Agreement.
The Custodians'
abilities to adopt technology in response to changing security needs or trends pose a challenge to the safekeeping of the Trust's
LTC.
The history of the LTC Exchange
Market has shown that LTC Exchanges and large holders of LTC must adapt to technological change in order to secure and safeguard client
accounts. While the Custodians are required in their respective agreements to safeguard the Vault Accounts from theft, loss, destruction
or other issues relating to hackers and technological attacks, their ability to do so is based on known technology and threats. As technological
change occurs, the security threats to the Vault Accounts will likely adapt and previously unknown threats may emerge. Furthermore, the
Sponsor believes that the Trust may become a more appealing target of security threats as the size of the Trust's assets grows.
To the extent that the Custodians are unable to identify and mitigate or stop new security threats, the Vault Accounts may be subject
to theft, loss, destruction or other attack, which could have a negative impact on the performance of the Shares or result in loss of
the Trust's assets.
The Sponsor and its
affiliates, or another entity (i.e., a seed investor), may invest in the Trust.
The Sponsor, its affiliates,
or a seed investor, may invest in the Trust at or near the establishment of the Trust, which may facilitate the Trust achieving a specified
size or scale. Seed investors may contribute all or a majority of the assets in the Trust. There is a risk that such seed investors may
redeem their investments in the Trust. Such redemptions could have a significant negative impact on the Trust, including on its liquidity.
61
Shareholders may be
adversely affected by the lack of independent advisers representing investors in the Trust.
The Sponsor has consulted
with counsel, accountants and other advisers regarding the formation and operation of the Trust. No counsel has been appointed to represent
an investor in connection with the offering of the Shares. Accordingly, an investor should consult his, her or its own legal, tax and
financial advisers regarding the desirability of an investment in the Shares. Lack of such consultation may lead to an undesirable investment
decision with respect to investment in the Shares.
Shareholders may be
adversely affected by the lack of regular shareholder meetings and no voting rights.
Under the Trust Agreement,
Shareholders have limited voting rights and the Trust will not have regular Shareholder meetings and take no part in the management or
control of the Trust. Accordingly, Shareholders do not have the right to authorize actions, appoint service providers or take other actions
as may be taken by Shareholders of other trusts or companies where shares carry such rights. Shareholders, may, however, remove and replace
the Sponsor by the affirmative vote of a majority of the outstanding Shares. The Shareholders' limited voting rights, however, give
almost all control under the Trust Agreement to the Sponsor and the Trustee. The Sponsor may take actions in the operation of the Trust
that may be adverse to the interests of Shareholders. The Sponsor's operation of the Trust could adversely affect an investment
in the Shares.
USE OF PROCEEDS
Proceeds received by the Trust
from the issuance and sale of Baskets will consist of cash. Deposits of cash are held by the Cash Custodian on behalf of the Trust until
(i) transferred in connection with the purchase of LTC that is subsequently deposited with a Custodian, (ii) delivered out in connection
with redemptions of Baskets or (iii) transferred to pay fees due to the Sponsor and Trust expenses and liabilities not assumed by the
Sponsor.
When the Trust uses cash proceeds
from creation transactions to purchase LTC, the Trust will receive LTC from a third party that is not an Authorized Participant. The Trust—not
any Authorized Participant—is responsible for selecting the third party to deliver the LTC. Furthermore, the third party will not
be acting as an agent of any Authorized Participant with respect to the delivery of the LTC to the Trust or acting at the direction of
any Authorized Participant with respect to the delivery of the LTC to the Trust. The Trust will redeem Shares by delivering LTC to a third
party that is not an Authorized Participant. The Trust—not any Authorized Participant—is responsible for selecting the third
party to receive the LTC. In addition, the third party will not be acting as an agent of any Authorized Participant with respect to the
receipt of the LTC from the Trust or acting at the direction of any Authorized Participant with respect to the receipt of the LTC from
the Trust.
THE LTC INDUSTRY
AND MARKET
This section of the Prospectus
provides a more detailed description of LTC, including: information about the historical development of LTC; how a person holds LTC; how
to use LTC in transactions; how to trade LTC; the spot markets where LTC can be bought, held and sold; and the LTC OTC market.
LTC, the Litecoin
Blockchain and the Litecoin Network
Litecoin,
or LTC, is a digital asset that is created and transmitted through the operations of the peer-to-peer Litecoin Network, a decentralized
network of computers that operates on cryptographic protocols. No single entity owns or operates the Litecoin Network, the infrastructure
of which is collectively maintained by a decentralized user base. The Litecoin Network allows people to exchange tokens of value, called
LTC, which are recorded on a public transaction ledger known as a blockchain. LTC can be used to pay for goods and services on the Litecoin
Network, or it can be converted to fiat currencies, such as the U.S. dollar, at rates determined on digital asset trading platforms or
in individual end-user-to-end-user transactions under a barter system.
Litecoin
is an alternative software implementation of bitcoin that was created in late 2011 by Charlie Lee, a former Google employee, who set out
to create a proof-of-work currency that could be an alternative to bitcoin. Ultimately, this resulted in a clone of bitcoin. Although
Litecoin is thus very similar to bitcoin, there are several key differences between the Litecoin Network and the bitcoin network. These
differences include a block generation time of approximately two and a half minutes for LTC as compared to ten minutes for bitcoin, and
a cap on the number of coins that will be created of 84 million LTC, as compared to 21 million for bitcoin. As a result of these differences,
transactions using LTC occur four times faster than transactions using bitcoin and at a lower cost. Litecoin also implemented "Scrypt,"
a distinct hashing algorithm different from bitcoin's SHA-256 hashing algorithm.
62
The
Litecoin Network is decentralized and does not require governmental authorities or financial institution intermediaries to create, transmit
or determine the value of LTC. Rather, LTC is created and allocated by the Litecoin Network protocol through a "mining" process.
The value of LTC is determined by the supply of and demand for LTC on the digital asset trading platforms or in private end-user-to-end-user
transactions.
Similar
to the bitcoin network, the Litecoin Network operates on a proof-of-work model. New LTC is created and rewarded to the miners of a block
in the Litecoin Blockchain for verifying transactions. The Litecoin Blockchain is effectively a decentralized database that includes all
blocks that have been mined by miners and it is updated to include new blocks as they are solved. Each LTC transaction is broadcast to
the Litecoin Network and, when included in a block, recorded in the Litecoin Blockchain. As each new block records outstanding LTC transactions,
and outstanding transactions are settled and validated through such recording, the Litecoin Blockchain represents a complete, transparent
and unbroken history of all transactions of the Litecoin Network. The current miner reward of 6.25 LTC per block was reduced from 12.5
LTC per block by 50% in August 2023, and will be further reduced by another 50% every 840,000 blocks, or approximately four years, thereafter.
A block of transactions is confirmed on the Litecoin Network approximately every 2.5 minutes. As of ________, 202_, approximately ____
million LTC were outstanding.
Similar
to bitcoin, LTC can be used to pay for goods and services or can be converted to fiat currencies, such as the U.S. dollar, at rates determined
on digital asset trading platforms or in individual end-user-to-end-user transactions under a barter system. Additionally, LTC is used
to pay for transaction fees to miners for verifying transactions on the Litecoin Network.
Overview of the
Litecoin Network's Operations
In
order to own, transfer or use LTC directly on the Litecoin Network (as opposed to through an intermediary, such as a custodian), a person
generally must have internet access to connect to the Litecoin Network. LTC transactions may be made directly between end-users without
the need for a third-party intermediary. To prevent the possibility of double-spending LTC, a user must notify the Litecoin Network of
the transaction by broadcasting the transaction data to its network peers. The Litecoin Network provides confirmation against double-spending
by memorializing every transaction in the Litecoin Blockchain, which is publicly accessible and transparent. This memorialization and
verification against double-spending is accomplished through the Litecoin Network mining process, which adds "blocks" of data,
including recent transaction information, to the Litecoin Blockchain.
Overview of Litecoin
Prior
to engaging in LTC transactions directly on the Litecoin Network, a user generally must first install on its computer or mobile device
a Litecoin Network software program that will allow the user to generate a private and public key pair associated with an LTC address
commonly referred to as a "wallet." The Litecoin Network software program and the LTC address also enable the user to connect
to the Litecoin Network and transfer LTC to, and receive LTC from, other users.
Each
Litecoin Network address, or wallet, is associated with a unique "public key" and "private key" pair. To receive
LTC, the LTC recipient must provide its public key to the party initiating the transfer. This activity is analogous to a recipient for
a transaction in U.S. dollars providing a routing address in wire instructions to the payor so that cash may be wired to the recipient's
account. The payor approves the transfer to the address provided by the recipient by "signing" a transaction that consists
of the recipient's public key with the private key of the address from where the payor is transferring the LTC. The recipient, however,
does not make public or provide to the sender its related private key.
LTC
can be held in different types of wallets, including hardware wallets, software wallets and custodial wallets provided by digital asset
trading platforms. The wallet essentially holds the private keys that control the account on the Litecoin Blockchain. The private key
is crucial for signing transactions on the ledger. Whoever possesses the private key associated with a Litecoin Blockchain account effectively
controls the LTC held by that account. While LTC is the native asset, the Litecoin Blockchain also supports the holding and transferring
of other assets (like USD, EUR, or other digital assets) through a system of trust lines. However, these other assets are not XRP itself;
they are IOUs issued by institutions or individuals on the ledger.
63
Neither
the recipient nor the sender reveal their private keys in a transaction, because the private key authorizes transfer of the funds in that
address to other users. Therefore, if a user loses his private key, the user may permanently lose access to the LTC contained in the associated
address. Likewise, LTC is irretrievably lost if the private key associated with them is deleted and no backup has been made. When sending
LTC, a user's Litecoin Network software program must validate the transaction with the associated private key. In addition, since
every computation on the Litecoin Network requires processing power, there is a transaction fee involved with the transfer that is paid
by the payor. The resulting digitally validated transaction is sent by the user's Litecoin Network software program to the Litecoin
Network miners to allow transaction confirmation.
As
discussed in greater detail below in "—Creation of New LTC," Litecoin Network miners record and confirm transactions
when they mine and add blocks of information to the Litecoin Blockchain. When a miner mines a block, it creates that block, which includes
data relating to (i) newly submitted and accepted transactions; (ii) a reference to the prior block in the Litecoin Blockchain; and (iii)
the satisfaction of the consensus mechanism to mine the block. The miner becomes aware of outstanding, unrecorded transactions through
the data packet transmission and distribution discussed above.
Upon
the addition of a block included in the Litecoin Blockchain, the Litecoin Network software program of both the spending party and the
receiving party will show confirmation of the transaction on the Litecoin Blockchain and reflect an adjustment to the LTC balance in each
party's Litecoin Network public key, completing the LTC transaction. Once a transaction is confirmed on the Litecoin Blockchain,
it is irreversible.
Some
LTC transactions are conducted "off-blockchain" and are therefore not recorded in the Litecoin Blockchain. Some "off-blockchain"
transactions involve the transfer of control over, or ownership of, a specific digital wallet holding LTC or the reallocation of ownership
of certain LTC in a pooled-ownership digital wallet, such as a digital wallet owned by a digital asset trading platform. In contrast to
on-blockchain transactions, which are publicly recorded on the Litecoin Blockchain, information and data regarding off-blockchain transactions
are generally not publicly available. Therefore, off-blockchain transactions are not truly LTC transactions in that they do not involve
the transfer of transaction data on the Litecoin Network and do not reflect a movement of LTC between addresses recorded in the Litecoin
Blockchain. For these reasons, off-blockchain transactions are subject to risks as any such transfer of LTC ownership is not protected
by the protocol behind the Litecoin Network or recorded in, and validated through, the blockchain mechanism.
Creation of New
LTC
Initial
Creation of LTC
The
initial creation of LTC was in connection with a clone of the bitcoin blockchain in 2011. All additional LTC have been created through
the mining process.
Mining
Process
The
Litecoin Network is kept running by computers all over the world. In order to incentivize those who incur the computational costs of securing
the network by validating transactions, there is a reward that is given to the computer that was able to create the latest block on the
chain. Every two and a half minutes, on average, a new block is added to the Litecoin Blockchain with the latest transactions processed
by the network, and the computer that generated this block is currently awarded 6.25 LTC, which was reduced by 50%, from 12.5 LTC, in
August 2023. Due to the nature of the algorithm for block generation, this process (generating a "proof-of-work") is guaranteed
to be random. Over time, rewards are expected to be proportionate to the computational power of each machine.
The
process by which LTC is "mined" results in new blocks being added to the Litecoin Blockchain and new LTC tokens being issued
to the miners. Computers on the Litecoin Network engage in a set of prescribed complex mathematical calculations in order to add a block
to the Litecoin Blockchain and thereby confirm LTC transactions included in that block's data.
64
To
begin mining, a user can download and run Litecoin Network mining software, which turns the user's computer into a "node"
on the Litecoin Network that validates blocks. Each block contains the details of some or all of the most recent transactions that are
not memorialized in prior blocks, as well as a record of the award of LTC to the miner who added the new block. Each unique block can
be solved and added to the Litecoin Blockchain by only one miner. Therefore, all individual miners and mining pools on the Litecoin Network
are engaged in a competitive process of constantly increasing their computing power to improve their likelihood of solving for new blocks.
As more miners join the Litecoin Network and its processing power increases, the Litecoin Network adjusts the complexity of the block-solving
equation to maintain a predetermined pace of adding a new block to the Litecoin Blockchain approximately every two and a half minutes.
A miner's proposed block is added to the Litecoin Blockchain once a majority of the nodes on the Litecoin Network confirms the miner's
work. Miners that are successful in adding a block to the Litecoin Blockchain are automatically awarded LTC for their effort and may also
receive transaction fees paid by transferors whose transactions are recorded in the block. This reward system is the method by which new
LTC enter into circulation to the public.
The
Litecoin Network is designed in such a way that the reward for adding new blocks to the Litecoin Blockchain decreases over time. Once
new LTC tokens are no longer awarded for adding a new block, miners will only have transaction fees to incentivize them, and as a result,
it is expected that miners will need to be better compensated with higher transaction fees to ensure that there is adequate incentive
for them to continue mining.
Limits on LTC Supply
The
Litecoin Network is structured to allow a maximum of 84 million LTC to be created, which are mined over time with the creation of each
new block. The supply of new LTC is mathematically controlled so that the number of LTC grows at a limited rate pursuant to a pre-set
schedule. The number of LTC awarded for solving a new block is automatically halved after every 840,000 blocks are added to the Litecoin
Blockchain. Currently, the fixed reward for solving a new block is 6.25 LTC per block, and this is expected to decrease by half to become
3.125 LTC after the next 840,000 blocks since the last reward reduction have entered the Litecoin Network, which is expected to be approximately
July 2027. This deliberately controlled rate of LTC creation means that the number of LTC in existence will increase at a controlled rate
until the number of LTC in existence reaches 84 million LTC.
As
of ________, 202_, approximately ____ million LTC were outstanding, and estimates of when the 84 million LTC limitation will be reached
range from at or near the year 2140.
Modifications to
the LTC Protocol
The
Litecoin Network is an open source project with no official developer or group of developers that controls it. However, the Litecoin Network's
development has historically been overseen by a core group of developers. The core developers are able to access, and can alter, the Litecoin
Network source code and, as a result, they are responsible for quasi-official releases of updates and other changes to the Litecoin Network's
source code.
The
release of updates to the Litecoin Network's source code does not guarantee that the updates will be automatically adopted. Users
and miners must accept any changes made to the Litecoin source code by downloading the proposed modification of the Litecoin Network's
source code. A modification of the Litecoin Network's source code is effective only with respect to the Litecoin users and miners
that download it. If a modification is accepted by only a percentage of users and miners, a division in the Litecoin Network will occur
such that one network will run the pre-modification source code and the other network will run the modified source code. Such a division
is known as a "fork." Consequently, as a practical matter, a modification to the source code becomes part of the Litecoin
Network only if accepted by participants collectively having most of the processing power on the Litecoin Network.
Core
development of the Litecoin Network source code has increasingly focused on modifications of the Litecoin Network protocol to increase
speed and scalability and also allow for non-financial, next generation uses. The Trust's activities will not directly relate to
such projects, though such projects may utilize LTC as tokens for the facilitation of their non-financial uses, thereby potentially increasing
demand for LTC and the utility of the Litecoin Network as a whole. Conversely, projects that operate and are built within the Blockchain
may increase the data flow on the Litecoin Network and could either "bloat" the size of the Litecoin Blockchain or slow confirmation
times. At this time, such projects remain in early stages and have not been materially integrated into the Litecoin Blockchain or the
Litecoin Network.
In
May 2022, a Litecoin Network upgrade incorporated MimbleWimble, an additional encryption feature. MimbleWimble serves two purposes: (i)
concealing the transacted amount of Litecoin and (ii) detecting fraudulent activity if the transaction amount were changed while being
processed.
65
Forms of Attack Against
the Litecoin Network
All networked systems are
vulnerable to various kinds of attacks. As with any computer network, the Litecoin Network contains certain flaws. For example, the Litecoin
Network is currently vulnerable to a "51% attack" where, if a mining pool were to gain control of more than 50% of the hash
rate for a digital asset, a malicious actor would be able to gain full control of the network and the ability to manipulate the Litecoin
Blockchain. As of the date of this Prospectus, the top three largest mining pools controlled over 50% of the hash rate of the Litecoin
Network. Any future attacks on the Litecoin Network could negatively impact the perception of the Litecoin Network, the value of Litecoin,
and the value of the Shares.
In addition, many digital
asset networks have been subjected to a number of denial of service attacks, which has led to temporary delays in block creation and in
the transfer of digital assets. Any similar attacks on the Litecoin Network that impact the ability to transfer LTC could have a material
adverse effect on the price of LTC and the value of the Shares.
For additional information,
see the "
Risk Factors
" section of this Prospectus.
Market Participants
Miners
Miners
range from LTC enthusiasts to professional mining operations that design and build dedicated machines and data centers, including mining
pools, which are groups of miners that act cohesively and combine their processing power to solve blocks (in the case of proof-of-work)
or stake coins (in the case of proof-of-stake). When a pool mines a new block, the pool operator receives the LTC and, after taking a
nominal fee, splits the resulting reward among the pool participants based on the processing power each of them contributed to mine such
block. Mining pools provide participants with access to smaller, but steadier and more frequent, LTC payouts.
Investment and Speculative
Sector
This
sector includes the investment and trading activities of both private and professional investors and speculators. Historically, larger
financial services institutions are publicly reported to have limited involvement in investment and trading in digital assets, although
the participation landscape is beginning to change. Currently, there is relatively limited use of digital assets in the retail and commercial
marketplace in comparison to relatively extensive use by speculators, and a significant portion of demand for digital assets is generated
by speculators and investors seeking to profit from the short- or long-term holding of digital assets.
Retail Sector
The
retail sector includes users transacting in direct peer-to-peer LTC transactions through the direct sending of LTC over the Litecoin Network.
The retail sector also includes transactions in which consumers pay for goods or services with LTC through direct transactions or third-party
service providers such as BitPay, Coinbase and GoCoin. While the use of bitcoin to purchase goods and services from commercial or service
business is developing, LTC has not yet been accepted in the same manner.
Service Sector
This
sector includes companies that provide a variety of services including the buying, selling, payment processing and storing of LTC. For
example, Coinbase, Crypto.com, Kraken, and LMAX Digital are some of the largest digital asset trading platforms by volume traded. ________,
the Custodian for the Trust, is a digital asset custodian that provides custodial accounts that store LTC for users. As the Litecoin Network
continues to grow in acceptance, it is anticipated that service providers will expand the currently available range of services and that
additional parties will enter the service sector for the Litecoin Network.
66
Competition
Thousands
of digital assets, as tracked by CoinMarketCap.com as of ________, 202_, have been developed since the inception of bitcoin, which is
currently the most developed digital asset because of the length of time it has been in existence, the investment in the infrastructure
that supports it, and the network of individuals and entities that are using bitcoin in transactions. While LTC has enjoyed some success
in its limited history, the aggregate value of outstanding LTC is smaller than that of bitcoin and Ethereum and may be eclipsed by the
more rapid development of other digital assets. Some industry groups are also creating private, permissioned blockchain versions of digital
assets. For example, J.P. Morgan and others are developing an open source platform called Quorum, which is described as a version of Ethereum
designed for use by the financial services industry. Similar events may occur with LTC.
Regulation of Digital Assets
As
digital assets have grown in both popularity and market size, the U.S. Congress and a number of U.S. federal and state agencies (including
FinCEN, OFAC, SEC, CFTC, the Financial Industry Regulatory Authority ("FINRA"), the Consumer Financial Protection Bureau ("CFPB"),
the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation, the IRS, the Office of the Comptroller
of the Currency, the Federal Deposit Insurance Corporation, the Federal Reserve and state financial institution and securities regulators)
have been examining the operations of digital asset networks, digital asset users and the Digital asset markets, with particular focus
on the extent to which digital assets can be used to launder the proceeds of illegal activities, evade sanctions or fund criminal or terrorist
enterprises and the safety and soundness of trading platforms and other service providers that hold or custody digital assets for users.
Many of these state and federal agencies have issued consumer advisories regarding the risks posed by digital assets to investors. President
Biden's March 9, 2022 Executive Order, asserting that technological advances and the rapid growth of the digital asset markets "necessitate
an evaluation and alignment of the United States Government approach to digital assets," signals an ongoing focus on digital asset
policy and regulation in the United States. A number of reports issued pursuant to the Executive Order have focused on various risks related
to the digital asset ecosystem, and have recommended additional legislation and regulatory oversight. In addition, federal and state agencies,
and other countries and international bodies have issued rules or guidance about the treatment of digital asset transactions or requirements
for businesses engaged in digital asset activity. Moreover, the failure of FTX Trading Ltd. ("FTX") in November 2022 and the
resulting market turmoil substantially increased regulatory scrutiny in the United States and globally and led to SEC and criminal investigations,
enforcement actions and other regulatory activity across the digital asset ecosystem.
In
addition, the SEC, U.S. state securities regulators and several foreign governments have issued warnings and instituted legal proceedings
in which they argue that certain digital assets may be classified as securities and that both those digital assets and any related initial
coin offerings or other primary and secondary market transactions are subject to securities regulations. For example, in June 2023, the
SEC brought charges against Binance and Coinbase, and in November 2023, the SEC brought charges against Kraken, alleging that they operated
unregistered securities exchanges, brokerages and clearing agencies. In its complaints, the SEC asserted that several digital assets are
securities under the federal securities laws. The outcomes of these proceedings, as well as ongoing and future regulatory actions, have
had a material adverse effect on the digital asset industry as a whole and on the price of LTC, and may alter, perhaps to a materially
adverse extent, the nature of an investment in the Shares and/or the ability of the Trust to continue to operate. Additionally, U.S. state
and federal, and foreign regulators and legislatures have taken action against virtual currency businesses or enacted restrictive regimes
in response to adverse publicity arising from hacks, consumer harm, or criminal activity stemming from virtual currency activity.
In
August 2021, the chair of the SEC stated that he believed investors using digital asset trading platforms are not adequately protected,
and that activities on the platforms can implicate the securities laws, commodities laws and banking laws, raising a number of issues
related to protecting investors and consumers, guarding against illicit activity, and ensuring financial stability. The chair expressed
a need for the SEC to have additional authorities to prevent transactions, products, and platforms from "falling between regulatory
cracks," as well as for more resources to protect investors in "this growing and volatile sector." The chair called
for federal legislation centering on digital asset trading, lending, and decentralized finance platforms, seeking "additional plenary
authority" to write rules for digital asset trading and lending. However, the chair has subsequently stated that the SEC already
has explicit authority under existing laws to regulate the digital asset sector and several enforcement actions were filed against digital
asset trading platforms during the first half of 2023. In particular, in June 2023, the SEC brought enforcement actions against Binance
and Coinbase, two of the largest digital asset trading platforms, alleging that they operated unregistered securities exchanges, brokerages
and clearing agencies.
The
SEC has taken steps to interpret its existing authorities as covering various digital asset activities. For example, the SEC has recently
proposed amendments to the custody rules under Rule 406(4)-2 of the Investment Advisers Act. The proposed rule changes would amend the
definition of a "qualified custodian" under Rule 206(4)-2(d)(6) and expand the current custody rule under Rule 406(4)-2 to
cover digital assets and related advisory activities. If enacted as proposed, these rules would likely impose additional regulatory requirements
with respect to the custody and storage of digital assets and could lead to additional regulatory oversight of the digital asset ecosystem
more broadly.
67
Various
foreign jurisdictions have, and may continue to, in the near future, adopt laws, regulations or directives that affect a digital asset
network, the digital asset markets, and their users, particularly digital asset trading platforms and service providers that fall within
such jurisdictions' regulatory scope. For example:
●
China has made transacting in cryptocurrencies
illegal for Chinese citizens in mainland China, and additional restrictions may follow. China has banned initial coin offerings and there
have been reports that Chinese regulators have taken action to shut down a number of China-based digital asset trading platforms.
●
South Korea determined to amend its Financial
Information Act in March 2020 to require virtual asset service providers to register and comply with its AML and counter-terrorism funding
framework. These measures also provide the government with the authority to close digital asset trading platforms that do not comply with
specified processes. South Korea has also banned initial coin offerings.
●
The Reserve Bank of India in April 2018 banned
the entities it regulates from providing services to any individuals or business entities dealing with or settling digital assets. In
March 2020, this ban was overturned in the Indian Supreme Court, although the Reserve Bank of India is currently challenging this ruling.
●
The United Kingdom's Financial Conduct
Authority published final rules in October 2020 banning the sale of derivatives and exchange-traded notes that reference certain types
of digital assets, contending that they are "ill-suited" to retail investors citing extreme volatility, valuation challenges
and association with financial crime. A new law, the Financial Services and Markets Act 2023 ("FSMA"), received royal assent
in June 2023. The FSMA brings digital asset activities within the scope of existing laws governing financial institutions, markets and
assets.
●
The Parliament of the European Union approved
the text of the Markets in Crypto-Assets Regulation ("MiCA") in April 2023, establishing a regulatory framework for digital
asset services across the European Union. MiCA is intended to serve as a comprehensive regulation of digital asset markets and imposes
various obligations on digital asset issuers and service providers. The main aims of MiCA are industry regulation, consumer protection,
prevention of market abuse and upholding the integrity of digital asset markets. MiCA was formally approved by the European Union's
member states in 2023. Certain parts of MiCA became effective as of June 2024 and the remainder will start to apply as of December 2024.
There
remains significant uncertainty regarding foreign governments' future actions with respect to the regulation of digital assets and
digital asset trading platforms. Such laws, regulations or directives may conflict with those of the United States and may negatively
impact the acceptance of LTC by users, merchants and service providers outside the United States and may therefore impede the growth or
sustainability of the Litecoin ecosystem in the United States and globally, or otherwise negatively affect the value of LTC held by the
Trust. The effect of any future regulatory change on the Trust or the LTC held by the Trust is impossible to predict, but such change
could be substantial and adverse to the Trust and the value of the Shares.
ACTIVITIES
OF THE TRUST
The activities of the Trust
will be limited to (1) issuing and redeeming Baskets in exchange for cash deposited by the Authorized Participants, (2) transferring actual
LTC as necessary to cover the Sponsor's Fee and selling LTC as necessary to pay Additional Trust Expenses, (3) causing the Sponsor
to sell LTC and transferring cash proceeds in exchange for Baskets surrendered for redemption by the Authorized Participants, (4) causing
the Sponsor to sell LTC on the termination of the Trust and (5) engaging in all administrative and custodial procedures necessary to accomplish
such activities in accordance with the provisions of the Trust Agreement. The Trust will not be actively managed. It will not engage in
any activities designed to obtain a profit from, or to ameliorate losses caused by, changes in the market prices of LTC.
Trust Objective
The investment objective of
the Trust is for the Shares to reflect the performance of the value of a LTC as represented by the Index, less the Trust's liabilities
and expenses. The Shares are designed to provide investors with a cost-effective and convenient way to invest in LTC. A substantial direct
investment in LTC may require expensive and sometimes complicated arrangements in connection with the acquisition, security and safekeeping
of the LTC and may involve the payment of substantial fees to acquire such LTC from third-party facilitators through cash payments of
U.S. dollars. Although the Shares will not be the exact equivalent of a direct investment in LTC, they provide investors with an alternative
that constitutes a relatively cost-effective way to participate in LTC markets through the securities market. Because the value of the
Shares is tied to the value of the LTC held by the Trust, it is important to understand the investment attributes of, and the market for,
LTC.
68
Strategy
Behind the Shares
The Shares are intended to
offer investors an opportunity to participate in LTC markets through an investment in securities. The logistics of accepting, transferring
and safekeeping of LTC are dealt with by the Sponsor, Administrator and Custodians, and the related expenses are built into the price
of the Shares. Therefore, Shareholders do not have additional tasks or costs in addition to those associated with investing in any other
publicly traded security.
The Shares are intended to
provide institutional and retail investors with a simple and cost-effective means, with minimal credit risk, of gaining investment benefits
similar to those of directly holding LTC. The Shares offer an investment that is:
●
Easily Accessible and Relatively Cost Efficient
. Investors in the Shares can also directly access LTC markets through the LTC Exchange Market. The Sponsor believes that investors will be able to more effectively implement strategic and tactical asset allocation strategies that use LTC by using the Shares instead of directly purchasing and holding LTC, and for many investors, transaction costs related to the Shares will be lower than those associated with the direct purchase, storage and safekeeping of LTC.
●
Exchange Traded and Transparent
. The Shares will be listed and traded on Nasdaq, providing investors with an efficient means to implement various investment strategies. Upon effectiveness of the registration statement of which this prospectus is a part, the Shares will be eligible for margin accounts and will be backed by the assets of the Trust. The Trust will not hold or employ any derivative securities. Furthermore, the value of the Trust's assets will be reported each day on the Sponsor's website at https://coinshares.com/us/etf/____/.
●
Minimal Credit Risk
. The Shares represent an interest in actual LTC owned by the Trust. The Trust's LTC in the Custodians' possession are not subject to borrowing arrangements with third parties or counterparty or credit risks.
●
Safekeeping System
. The Custodians have been appointed to store and safekeep the LTC for the Trust using a segregated and therefore diversified safekeeping storage system. The hardware, software, administration and continued technological development that are used by the Custodians may not be available or cost-effective for many investors.
The Trust differentiates itself
from competing digital currency financial vehicles, to the extent that such digital currency financial vehicles may develop, in the following
ways:
●
Custodians
. The Custodians that hold the private keys for the digital wallets of the Trust are ________, ________and ________.
●
Enhanced Security
. The Custodians and Sponsor have put enhanced security procedures in place that require one or more employees of the Sponsor to verify each transaction, with each employee having a unique verification method. The Custodians and the Sponsor have put additional similar enhanced security procedures in place to protect against the malicious movement of LTC.
●
Custodian Audits
. The Custodians have each agreed to allow the Trust and the Sponsor to take any necessary steps to verify that satisfactory internal control systems and procedures are in place, and to visit and inspect the systems on which the Trust's LTC are held. The Custodians are also obligated to provide the Trust and Sponsor with both independent and audit reports on the LTC Account.
●
Directly Held LTC
. The Trust directly owns actual LTC held through the Custodians. The direct ownership of LTC is not subject to counterparty or credit risks. This may differ from other digital currency financial vehicles that provide LTC exposure through other means, such as the use of financial or derivative instruments.
●
Structure
. The Shares intend to track the performance of the value of a LTC as represented by the Index, less the Trust's liabilities and expenses. The Trust seeks to achieve this objective by directly owning LTC. This structure may be different from other digital currency financial vehicles that seek to track the performance of the price of LTC or other digital currencies through the use of futures contracts or derivative instruments.
●
Sponsor's Fee
. The relatively low level of the Sponsor's Fee that is paid to the Sponsor is a competitive factor that may influence an investor's decision to purchase Shares.
69
Secondary
Market Trading
While the Trust's investment
objective is for the Shares to reflect the performance of the value of a LTC as represented by the Index, less the Trust's liabilities
and expenses, the Shares may trade in the secondary market at prices that are lower or higher than the LTC Holdings per Share. The amount
of the discount or premium in the trading price relative to the LTC Holdings per Share may be influenced by non-concurrent trading hours
and liquidity between the secondary market and larger LTC Exchanges in the LTC Exchange Market. While the Shares will be listed and traded
on Nasdaq from 9:30 a.m. until 4:00 p.m. ET, liquidity in the LTC Exchange Market may fluctuate depending upon the volume and availability
of larger LTC Exchanges. As a result, during periods in which LTC Exchange Market liquidity is limited or a major LTC Exchange is off-line,
trading spreads, and the resulting premium or discount, on the Shares may widen.
Trust Expenses
The Trust's only ordinary
recurring expense is expected to be the Sponsor's Fee. The Sponsor's Fee will be determined by applying a 0.25% annual rate
to the Trust's LTC Holdings, as calculated and published by the Sponsor or its delegates, and converting the resulting U.S. dollar
amount into LTC at the LTC Index Price, on a daily basis. The rate of the Sponsor's Fee is subject to the sole discretion of the
Sponsor. Payments of the Sponsor's Fee will occur weekly in arrears. To pay the Sponsor's Fee, the Custodians will, when directed
by the Sponsor, (i) withdraw from the LTC Account the number of LTC equal to the accrued but unpaid Sponsor's Fee, determined as
described above and (ii) transfer such LTC to an account maintained by the Custodians for the Sponsor.
The Sponsor, from time to
time, may temporarily waive all or a portion of the Sponsor's Fee at its discretion for stated periods of time. For a 3-month period
commencing on the day the Trust's Shares are initially listed on the Exchange, the Sponsor intends to waive the entire Sponsor's
Fee. If the Sponsor decides to further waive all or a portion of the Sponsor's Fee, Shareholders will be notified in a prospectus
supplement and/or a current report on Form 8-K or in its annual or quarterly reports. As consideration for its receipt of the Sponsor's
Fee, the Sponsor has assumed the obligation to pay the Sponsor-paid Expenses.
Furthermore, the Sponsor may,
in its sole discretion, agree to rebate all or a portion of the Sponsor's Fee attributable to Shares held by certain institutional
investors subject to minimum Share holding and lock up requirements as determined by the Sponsor to foster stability in the Trust's
asset levels. Any such rebate will be subject to negotiation and written agreement between the Sponsor and the investor on a case-by-case
basis. The Sponsor is under no obligation to provide any rebates of the Sponsor's Fee. Neither the Trust nor the Trustee will be
a party to any Sponsor's Fee rebate arrangements negotiated by the Sponsor.
The Sponsor has not assumed
the obligation to pay Additional Trust Expenses. If Additional Trust Expenses are incurred, the Sponsor or its delegate will cause the
Trust (or its delegate) to convert LTC into U.S. dollars at the price available through the Prime Broker's ________ Prime service
(less applicable trading fees) through the Trading Platform which the Sponsor is able to obtain using commercially reasonable efforts.
The number of LTC represented by a Share will decline each time the Trust pays Additional Trust Expenses by transferring or selling LTC.
See "Expenses."
Impact of
Trust Expenses on the Trust's LTC Holdings
The Trust will pay the Sponsor's
Fee to the Sponsor in LTC. In addition, the Trust will sell LTC to raise the funds needed for the payment of any Additional Trust Expenses.
The purchase price received as consideration for such sales will be the Trust's sole source of funds to cover its Additional Trust
Expenses. The Trust will not engage in any activity designed to derive a profit from changes in the prices of LTC. The Trust is obligated
to convert any cash contributed to LTC as soon as practicable, except to the extent necessary to pay expenses. Because the number of LTC
held by the Trust will decrease when LTC are used to pay the Sponsor's Fee or sold to permit the payment of Additional Trust Expenses,
the number of LTC represented by each Share will decrease over the life of the Trust. Accordingly, the Shareholders will bear the cost
of the Sponsor's Fee and Additional Trust Expenses. New deposits of LTC into the LTC Account that are purchased by the Trust in
connection with additional new Baskets issued by the Trust will not reverse this trend.
Purchase and Sale of LTC
Because the Trust will conduct
creations and redemptions of Shares for cash, it will be responsible for purchasing and selling LTC in connection with those creation
and redemption orders. The Trust may also be required to sell LTC to pay certain extraordinary, non-recurring expenses that are not assumed
by the Sponsor.
The Sponsor, on behalf of
the Trust, will typically seek to buy and sell LTC at a price as close to the Index as practical. When choosing between potential counterparties,
the Sponsor may consider factors other than simply the most favorable price. However, the most favorable price will be the predominant
factor in determining the counterparty with which the Sponsor effectuates the contemplated transaction. Other factors that the Sponsor
may consider include the size of the proposed order, as well as a counterparty's execution capabilities, reliability and responsiveness.
70
The Authorized Participants
will deliver only cash to create Shares and will receive only cash when redeeming Shares. Further, Authorized Participants involved in
a creation or redemption order will not directly or indirectly purchase, hold, deliver, or receive LTC as part of the creation or redemption
process or otherwise direct the Trust or a third party with respect to purchasing, holding, delivering, or receiving LTC as part of the
creation or redemption process for such order. Additionally, the Trust will create Shares by receiving LTC from a third party that is
not the Authorized Participant involved in the order, and the Sponsor, on behalf of the Trust—not the Authorized Participant—is
responsible for selecting the third party to deliver the LTC. Further, the third party will not be acting as an agent of the Authorized
Participant with respect to the delivery of the LTC to the Trust or acting at the direction of the Authorized Participant with respect
to the delivery of the LTC to the Trust. Additionally, the Trust will redeem Shares by delivering LTC to a third party that is not the
Authorized Participant and the Sponsor, on behalf of the Trust—not the Authorized Participant—is responsible for selecting
the third party to receive the LTC. Further, the third party will not be acting as an agent of the Authorized Participant with respect
to the receipt of the LTC from the Trust or acting at the direction of the Authorized Participant with respect to the receipt of the LTC
from the Trust.
LTC Trading Counterparties
The Sponsor, on behalf of
the Trust, is responsible for acquiring LTC from a LTC trading counterparty that has been approved by the Sponsor (each, a LTC Trading
Counterparty). _______ (the "Prime Broker") is the trust's initial LTC Trading Counterparty. The LTC Trading Counterparties
with which the Sponsor will engage in LTC transactions are unaffiliated third parties and all transactions will be done on an arm's-length
basis. LTC Trading Counterparties are not required to have an account with the Custodians.
When seeking to purchase or
sell LTC on behalf of the Trust, the Sponsor will typically seek to buy and sell LTC at a price as close to the Index as practical from
any of the approved LTC Trading Counterparties. Upon notification that the Trust needs to purchase or sell LTC, the Sponsor will reach
out to various LTC Trading Counterparties and ask them for a quote regarding the terms at which they would be willing to execute the contemplated
transaction. The Sponsor then determines the LTC Trading Counterparty with which it wishes to transact and records the rationale for that
determination. Once agreed upon, the transaction will generally occur on an "over-the-counter" basis. With respect to purchases
and sales of LTC conducted through the Prime Broker, the transfers of LTC will be recorded off-chain as book entries on the books and
records of the Prime Broker. In the event that the Trust engages other LTC Trading Counterparties, transfers of LTC may be conducted as
"on-chain" transactions represented on the Litecoin Blockchain.
The Sponsor maintains a process
for approving and monitoring LTC Trading Counterparties. All LTC Trading Counterparties must be approved by the Sponsor before the Trust
will engage in transactions with the entity. The Sponsor continuously reviews all approved LTC Trading Counterparties and will reject
the approval of any previously approved LTC Trading Counterparty if new information arises regarding the entity that puts the appropriateness
of that entity as an approved LTC trading counterparty in doubt. In considering which LTC Trading Counterparties to approve, the Sponsor
has instituted policies and procedures that include, but are not limited to those processes described in "Risk Factors – Risk
Factors Related to the Litecoin Blockchain and LTC – Anonymity and illicit financing risk."
Trade Credit
Pursuant to the Trust's
creation and redemption processes, Authorized Participants and the Trust do not settle the cash for creation or redemption orders until
the day after the order is placed, while the Trust makes purchases and sales of LTC in connection with creations and redemption orders
on the day of the order. To facilitate this settlement of creation and redemption orders, the Trust will borrow LTC or cash as Trade Credit
from the Trade Credit Lender on a short-term basis pursuant to the Trade Financing Agreement to cover the short-term transactional needs
of the Trust. Pursuant to the Authorized Participant Agreement, the Trust does not bear the ultimate cost of the Trade Credits or the
Trade Financing Agreement as those expenses are borne by the Authorized Participants during the order process. Due to the timing of creation
and redemption procedures of the Trust, the Sponsor anticipates that any agreements with subsequent LTC Trading Counterparties will require
similar trade financing arrangements to settle LTC and cash transactions on the day of order placement.
In the case of a purchase
of LTC with the Prime Broker, the extension of Trade Credits allows the Trust to purchase LTC through the Prime Broker on the date the
Trust wishes to effectuate the transaction (for instance, on the evening of the day when an order to create Shares is received), with
such LTC being deposited in the Trust's Trading Account. On the day following a trade when Trade Credits have been utilized, the
Trust uses cash (for instance, from the Authorized Participant who submitted the creation order) to repay the Trade Credits borrowed from
the Trade Credit Lender. The LTC purchased by the Trust is then swept from the Trust's Trading Account with the Prime Broker to
the Trust's Vault Account with the ________ Custodian pursuant to a regular end-of-day sweep process. Transfers of LTC into the
Trust's Trading Account are off-chain transactions and transfers from the Trust's Trading Account to the Vault Accounts are
"on-chain" transactions represented on the blockchain. Any financing fee owed to the Trade Credit Lender is deemed part of
trade execution costs and embedded in the trade price for each transaction with the Authorized Participant. Under normal market conditions,
the Sponsor's policy is to keep at least 95% of the Trust's LTC in the Vault Accounts and no more than 5% of the Trust's
LTC in the Trading Account to cover the reasonably anticipated short-term transaction needs of the Trust.
71
In the case of a sale of LTC,
the Trust enters into a transaction to sell LTC through LTC Trading Counterparties for cash, which is generally deposited directly with
the Cash Custodian. For LTC sold through the Prime Broker, the Trust's Trading Account with the Prime Broker may not be funded with
LTC on the date the Trust wishes to effectuate the transaction (for instance, on the evening of a day when an order to redeem Shares is
received) because the LTC remains in the Vault Accounts with the Custodians. In those circumstances the Trust may borrow Trade Credits
in the form of LTC from the Trade Credit Lender, which allows the Trust to sell LTC through the Prime Broker at the desired time, and
the cash proceeds are deposited in the Trust's Trading Account with the Prime Broker. On the business day following the trade, the
Trust will use the LTC that is moved from the Vault Accounts with the Custodians to the Trading Account with the Prime Broker to repay
the Trade Credits borrowed from the Trade Credit Lender. Transfers of LTC from the Vault Accounts to the Trading Account are "on-chain"
transactions represented on the Litecoin Blockchain. Any financing fee owed to the Trade Credit Lender is deemed part of trade execution
costs and embedded in the trade price for each transaction with the Authorized Participant.
USE OF THE
Compass Crypto Reference Index litecoin - 4pm NY Time
The Trust will determine the
LTC Index Price and value its Shares daily based on the value of LTC as reflected by the Index. The Index is calculated at the end of
every hour and published 15 minutes after the end of the hour. The Index currently uses substantially the same methodology as the Compass
Crypto Reference Index Litecoin ("LRR"), including utilizing the same Selected Exchanges (defined below), which is the underlying
rate to determine the settlement of Compass Crypto LTC futures contracts, except that the Index is calculated as of 4:00 p.m. New York
time, whereas the LRR is calculated as of 4:00 p.m. London time. The administrator of the Index is Compass Financial Technologies (the
"Benchmark Administrator"). The Trust also uses the LTC Index Price to calculate its "LTC Holdings," which is
the aggregate U.S. dollar value of LTC in the Trust, based on the LTC Index Price, less its liabilities and expenses. "LTC Holdings
per Share" is calculated by dividing LTC Holdings by the number of Shares currently outstanding. LTC Holdings and LTC Holdings per
Share are not measures calculated in accordance with GAAP. LTC Holdings is not intended to be a substitute for the Trust's NAV calculated
in accordance with GAAP, and LTC Holdings per Share is not intended to be a substitute for the Trust's NAV per Share calculated
in accordance with GAAP.
The Index was designed to
provide institutional investors with independent and robust LTC reference prices. It serves as a once-a-day benchmark rate of the U.S.
dollar price of LTC (LTC-USD), calculated as of 4:00 p.m. ET. The daily price level of the Index is based on the historical tick-by-tick
trades sourced directly from eligible exchanges. Eligible Exchanges must offer LTC against USD markets and be approved by the Compass
Crypto Reference Indices Steering Committee. The current list of eligible LTC Exchanges used in Index calculations are Bitstamp, Bitfinex,
Coinbase, Gemini, Kraken and LMAX. A dynamic, fully-systematic algorithm selects among the list of eligible exchanges the trading venues
which will contribute to the computation of the Index for the coming month. On the last day of each month, the algorithm computes the
last 60 days' average volume for each eligible exchange where LTC is traded against USD. For the avoidance of doubt, the last data
used in the computation refer to the day preceding the last business day of the month. The selection process keeps exchanges with a corresponding
average volume representing at least 5% of the total aggregated volume over all eligible exchanges for LTC. Only trades from the selected
LTC Exchanges (the "Selected Exchanges") will be considered in the Index computation for the coming month.
Each day, the Index is calculated
based on the collection of all observable transactions of all Selected Exchanges. The calculation methodology of the Index follow the
following steps:
●
For each Selected Exchange, a dataset of all
USD denominated trades occurring during the hourly time period is created.
●
Each dataset is divided in twelve (12) time-equally
sized partitions of trade records.
●
Volume-weighted median of trade prices are calculated
for each partition and each Selected Exchange.
●
For each partition, if the absolute percentage
deviation of the volume-weighted median price of a Selected Exchange from the median price computed on all Selected Exchanges is above
5%, the data of that exchange is considered anomalous. The exchange is then excluded from the Selected Exchanges for this partition.
●
For each partition, a "partition reference
price" is computed as the exchange volume weighted average over such partition of the volume-weighted median prices computed in
the step above.
●
The final Index level is given by the arithmetic
average of the computed partition reference price.
Data is identified as erroneous
and therefore discarded when reported in the wrong format (e.g., trade price or trade size that are non-numeric, non-positive or in a
format that deviates from the expected one). The transactions that cannot be retrieved by the Index calculation time are disregarded.
If no transactions occur or can be retrieved for any exchange on a specific partition, this exchange is disregarded for the calculation
of the Index on that day for the specific hour. Any delay or absence of trade data is reported to the Compass Crypto Reference Indices
Steering Committee and the selected course of action is formally announced. The calculation of the Index is obstructed: (i) when there
are no reported transactions; (ii) when all transactions are rejected as suspicious on all of the Selected Exchanges; (iii) when no data
is provided from the data provider; or (iv) due to any other unforeseen events. In the event of failure of the data provider to deliver
relevant data, the Compass Crypto Reference Indices Steering Committee will do its best effort to determine relevant LTC price from alternative
providers that are readily available. In this scenario, Index levels will be based on the LTC price determined by the Compass Crypto Reference
Indices Steering Committee. If no transactions occur or can be retrieved for more than three (3) consecutive business days, a Compass
Crypto Reference Indices Steering Committee meeting will be called to determine the most appropriate action.
72
Even though the process of
Index calculation is completely automated and pre-defined, an error can be discovered after the publication of the Index. In case of a
material error, the Index will be redetermined and the Index clients will be notified about the error and the date of the publication
of the redetermined Index. An error is considered material on the basis of its size, the dates of its discovery and of its occurrence,
and the impact of the Index redetermination on the users. The discovery of any error is reported to Compass Crypto Reference Indices Steering
Committee. In case a material error is discovered, and the Benchmark Administrator recognizes a manipulation or an attempted manipulation
of the Index level or the input data, it will be reported to the regulator.
Compass Financial Technologies
has established governance functions to review and provide challenges on all aspects of the Indices determination process. Governance
functions are managed by the Compass Oversight Committee and by the Compass Crypto Reference Indices Steering Committee.
The Compass Oversight Committee
oversees all areas of the benchmark determination processes. It is responsible for supervising and controlling the Index operations team
on all Compass Indices. It is also responsible for: (i) periodic review of incidents; (ii) making final decisions in case the Index operations
team are not capable or allowed to take decisions; (iii) defining and implementing organization procedures for the Index operations team;
(iv) defining and overseeing measures that allow for mitigation of operational risks; (v) supervising internal or external audit results;
and (vi) the implementation and supervision of the potential codes of conduct that have to be implemented. The Committee is comprised
of senior representatives of Compass Financial Technologies and external industry experts.
The Compass Crypto Reference
Indices Steering Committee is responsible for: (i) determining the calculation methodology and the rules governing the publication of
the Compass Crypto Reference Indices; (ii) making periodic reviews of the Compass Crypto Reference Indices to validate the robustness
of the methodology and to analyze the impact of methodology changes; (iii) organizing consultation with Compass Crypto Reference Indices
stakeholders if necessary; and (iv) ensuring that Compass Crypto Reference Indices offers a reliable and representative view of the market.
The Compass Crypto Reference Indices Steering Committee is composed of members from Compass and may include individuals or representatives
of companies, academics, external counsels, or market participants. The Compass Crypto Reference Indices Steering Committee assembles
once a year in April. However, at the request of a member of the committee, the Committee may meet on any other day of the year to discuss
potential "market emergency" and "force majeure" events or any other situation, which makes an extraordinary meeting
necessary. All Committee decisions will be published without delay following the Committee decision.
Index data and the description
of the Index are based on information made publicly available by the Benchmark Administrator on its website at https://www.compass-ft.com
and will also be available through online information services, such as Bloomberg and Refinitiv. None of the information on the Benchmark
Administrator's website is incorporated by reference into this prospectus.
As of ________, 202_, the
Selected Exchanges included in the Index are ____, ____, ____, ____, ____and ____.
The Selected Exchanges that
contribute transaction data to the Index with the aggregate volumes traded on their respective LTC-USD markets over the preceding four
calendar quarters are listed in the table below:
Aggregate Trading Volume of LTC-USD Markets of Index Selected Exchanges
Period
________
________
________
________
202_ Q4
________
________
________
________
202_ Q1
________
________
________
________
202_ Q2
________
________
________
________
________
________
202_ Q3
________
________
________
________
________
________
The 12* highest volume LTC-USD
markets operated by LTC trading platforms registered aggregate trading volumes as shown by the table below in the previous four calendar
quarters:
Aggregate Trading Volume of Top 12* Highest Volume LTC-USD LTC Trading Platforms
Period
________
________
________
________
Volume ($)
________
________
________
________
*Platforms include all Selected Exchanges and ________, ________, ________, ________ and ________.
73
The market share for LTC-USD
trading of the Selected Exchanges over the past four calendar quarters is shown in the table below:
LTC Trading Platform Market Share of LTC-USD Trading
Period
____
____
____
____
____
____
Others**
202_ Q4
________%
________%
________%
________%
________%
________%
________%
202_ Q1
________%
________%
________%
________%
________%
________%
________%
202_ Q2
________%
________%
________%
________%
________%
________%
________%
202_ Q3
________%
________%
________%
________%
________%
________%
________%
The Index is based on written
and transparent rules and procedures with the purpose of minimizing as much as possible the exercise of discretion and expert judgment.
The Index is built from input data that is not interpolated, extrapolated or adjusted. In case of lack of data, the last available data
is employed. Nevertheless, the exercise of expert judgment may become necessary in case of errors and Index restatements, delayed and
missing data, hard forks, airdrops, or unexpected situations arising from market stress. In the event that expert judgment is exercised,
this will be done by resorting to the written procedures reported in the methodology and by communicating the decisions taken to the Compass
Crypto Reference Indices Steering Committee and the Internal Compliance Function in order to prevent conflicts of interest and to protect
the integrity and the independence of the Index determinations. In addition, the interest of the Index users and the market integrity
will be taken into account.
COMPASS FINANCIAL TECHNOLOGIES
DATA IS USED UNDER LICENSE AS A SOURCE OF INFORMATION FOR THE TRUST'S PRODUCTS. COMPASS FINANCIAL TECHNOLOGIES, ITS AGENTS AND LICENSORS
HAVE NO OTHER CONNECTION TO THE TRUST'S PRODUCTS AND SERVICES AND DOES NOT SPONSOR, ENDORSE, RECOMMEND OR PROMOTE ANY OF THE TRUST'S
PRODUCTS OR SERVICES. COMPASS FINANCIAL TECHNOLOGIES, ITS AGENTS AND LICENSORS HAVE NO OBLIGATION OR LIABILITY IN CONNECTION WITH THE
TRUST'S PRODUCTS AND SERVICES. COMPASS FINANCIAL TECHNOLOGIES, ITS AGENTS AND LICENSORS DO NOT GUARANTEE THE ACCURACY AND/OR THE
COMPLETENESS OF ANY INDEX LICENSED TO THE TRUST AND SHALL NOT HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.
The Index methodology and
constituent digital asset trading platforms may be changed from time to time at the discretion of the Benchmark Administrator without
Shareholder approval. For example, if the Benchmark Administrator determines that there have been material efforts to manipulate the price
of LTC on a constituent digital asset trading platform or that the data feeds from such trading platform are unreliable, the Benchmark
Administrator may remove such trading platform for the Index methodology. To the extent that such changes to the methodology result in
a more limited set of constituent digital asset trading platforms, there is an increased risk that the price of LTC used in Trust's
calculation of NAV would deviate from the price quoted on digital asset trading platforms not included within the Index methodology. Shareholders
will be notified of changes to the Index methodology only if the Sponsor determines that such changes are material with respect to an
investment decision regarding the Shares. Once it has actual knowledge of material changes to the Index methodology, the Trust will notify
Shareholders in a prospectus supplement and/or a current report on Form 8-K or in its annual or quarterly reports.
CALCULATION
OF NAV
General
The Shares are valued on a
daily basis as of 4:00 p.m. ET. The value of LTC held by the Trust is determined based on the fair market value price for LTC determined
by the Benchmark Administrator.
The Trust's NAV is calculated
by:
●
taking the current market value of its LTC (determined as set forth below) and any other; and assets;
●
subtracting any liabilities (including accrued by unpaid expenses).
The Trust's NAV per
Share is calculated by taking the Trust's NAV and dividing it by the total amount of Shares outstanding.
74
The LTC held by the Trust
will typically be valued based on the LTC Index Price. The Administrator calculates the NAV of the Trust once each business day. The end-of-day
LTC price is calculated using the LTC Index Price as of 4:00 p.m. ET. However, NAVs are not officially struck until later in the day (often
by 5:30 p.m. ET and almost always by 8:00 p.m. ET). The pause after 4:00 p.m. ET provides an opportunity for the Sponsor to detect, flag,
investigate, and correct unusual pricing should it occur. If the Sponsor determines in good faith that the Index does not reflect an accurate
LTC price, then the Sponsor will instruct the Benchmark Administrator to employ an alternative method to determine the fair value of the
Trust's assets. The Compass Crypto Reference Index Litecoin - 4pm NY Time shall constitute the Index, but if the Index is not available
or the Sponsor at its sole discretion determines the Index is unreliable (together a "Fair Value Event"), the Trust's
holdings may be fair valued in accordance with the fair value policies approved by the Sponsor.
A Fair Value Event value determination
will be based on all available factors that the Sponsor deems relevant at the time of the determination, and may be based on analytical
values determined by the Sponsor using third-party valuation models.
Fair value policies approved
by the Sponsor will seek to determine the fair value price that the Trust might reasonably expect to receive from the current sale of
that asset or liability in an arm's-length transaction on the date on which the asset or liability is being valued. In the instance
of a Fair Value Event, the price set by the Trust's principal market as of 4:00 p.m. ET, on the valuation date would be utilized.
In the event the principal market price is not available or the Sponsor at its sole discretion determines the principal market valuation
is unreliable the Sponsor will use its best judgement to determine a good faith estimate of fair value.
The LTC markets are generally
open on days when U.S. markets are closed, which means that the value of the LTC owned by the Trust could change on days when Shares cannot
be bought or sold.
Intraday Indicative Value
In order to provide updated
information relating to the Trust for use by Shareholders and market professionals, the Sponsor will calculate and disseminate throughout
the core trading session on each business day an updated intraday indicative value ("IIV"). The IIV will be calculated by
using the prior day's closing NAV per Share of the Trust as a base and updating that value throughout the trading day.
The IIV disseminated during
the Exchange's core trading session hours should not be viewed as an actual real-time update of the NAV, because NAV is calculated
only once at the end of each trading day based on the relevant end-of-day value of the Trust's LTC. The IIV will be disseminated
on a per-Share basis every 15 seconds during regular Exchange core trading session hours of 9:30 a.m. ET to 4:00 p.m. ET. The Sponsor
will disseminate the IIV value through the facilities of relevant information processor and CQS High Speed Lines. In addition, the IIV
will be published on the Exchange's website and will be available through online information services such as Bloomberg and Reuters.
The IIV as of the time that the NAV is calculated on a given day may differ from the NAV for such day due to the differences in the time
window of trades used to calculate each price (the NAV uses a 60-minute window, whereas the IIV draws prices from the last trade on each
exchange in an effort to produce a relevant, real-time price).
There are many instances in
the market today where the IIV as of the time that the NAV is calculated on a given day and the NAV of an ETF for such day are subtly
different, whether due to the calculation methodology, market hours overlap or other factors. The Sponsor has seen limited or no negative
impact on trading, liquidity or other factors for exchange-traded funds in this situation. The Sponsor believes that the IIV will closely
track the globally integrated LTC price as reflected on the Selected Exchanges.
Dissemination of the IIV provides
additional information that is not otherwise available to the public and is useful to Shareholders and market professionals in connection
with the trading of the Shares on the Exchange. Shareholders and market professionals will be able throughout the trading day to compare
the market price of the Shares and the IIV. If the market price of the Shares diverges significantly from the IIV, market professionals
will have an incentive to execute arbitrage trades. For example, if the Trust appears to be trading at a discount compared to the IIV,
a market professional could buy Shares on the Exchange and sell short futures contracts. Such arbitrage trades can tighten the tracking
between the market price of the Shares and the IIV, and thus can be beneficial to all market participants.
Stock Splits
The Sponsor reserves the right
to adjust the Share price of the Trust in the future to maintain convenient trading ranges for Shareholders in the secondary market. Any
adjustments would be accomplished through stock splits or reverse stock splits. Such splits would decrease (in the case of a split) or
increase (in the case of a reverse split) the proportionate NAV, but would have no effect on the net assets of the Trust or the proportionate
voting rights of Shareholders or the value of any Shareholder's investment.
75
Other Assets
The fair value of any liquid
assets held by the Trust primarily in the form of cash is included in the determination of NAV.
Liabilities
The fair value of the Trust's
liabilities is included in the determination of NAV. These liabilities are expected generally to consist only of the Sponsor's Fee,
although liabilities may also include extraordinary expenses from time to time. See "The Trust—The Trust's Fees and
Expenses."
Impact of Trust Expenses
on the Trust's NAV
The amount of LTC represented
by the Shares will be reduced during the life of the Trust due to the transfer of the Trust's LTC to pay for the Sponsor's
Fee, and to pay for any extraordinary expenses. This dynamic will occur irrespective of whether the value of the Trust's assets,
or the trading price of the Shares, rises or falls.
The Trust's Financial
Statements
The Trust's periodic
financial statements may not utilize the net asset value of the Trust determined by reference to the Index to the extent the methodology
used to calculate the Index is deemed not to be consistent with GAAP.
The Trust's periodic financial statements will be
prepared in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 820,
"Fair Value Measurements and Disclosures" ("ASC Topic 820") and utilize an exchange-traded price from the Trust's
principal market for LTC on the Trust's financial statement measurement date. The Sponsor will determine at its sole discretion
the valuation sources and policies used to prepare the Trust's financial statements in accordance with GAAP. The Trust intends to
engage a third-party vendor to obtain a price from a principal market for LTC, which will be determined and designated by such third-party
vendor daily based on its consideration of several exchange characteristics, including oversight, and the volume and frequency of trades.
Under GAAP, such a price is expected to be deemed a Level 1 input in accordance with the ASC Topic 820 because it is expected to be a
quoted price in active markets for identical assets or liabilities.
To determine which market
is the Trust's principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating
the Trust's financial statements, the Trust follows ASC 820-10, which outlines the application of fair value accounting. ASC 820-10
determines fair value to be the price that would be received for LTC in a current sale, which assumes an orderly transaction between market
participants on the measurement date. ASC 820-10 requires the Trust to assume that LTC is sold in its principal market to market participants
or, in the absence of a principal market, the most advantageous market. Market participants are defined as buyers and sellers in the principal
or most advantageous market that are independent, knowledgeable, and willing and able to transact. The Trust may transact through digital
asset brokers or dealers, in multiple markets, and its application of ASC 820-10 reflects this fact. The Trust anticipates that, while
multiple venues and types of markets will be available to the digital asset brokers or dealers from whom the Sponsor acquires or disposes
of the Trust's LTC, the principal market in each scenario is determined by looking at the market-based level of volume and LTC trading
activity. Digital asset brokers or dealers may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets and Exchange
Markets (each as defined in the FASB ASC Master Glossary). Based on information reasonably available to the Trust, Exchange Markets have
the greatest volume and level of activity for the asset. The Trust therefore looks to accessible Exchange Markets as opposed to the Brokered
Market, Dealer Market and Principal-to-Principal Markets to determine its principal market. As a result of the aforementioned analysis,
an Exchange Market has been selected as the Trust's principal market. The Trust determines its principal market (or in the absence
of a principal market the most advantageous market) on a quarterly basis to determine which market is its Principal Market for the purpose
of calculating fair value for the creation of quarterly and annual financial statements.
The process that the
Sponsor has developed for identifying a principal market, as prescribed in ASC 820-10, which outlines the application of fair value accounting.
The process begins by identifying publicly available, well-established and reputable LTC trading venues (Exchange Markets, as defined
in the FASB ASC Master Glossary), which are selected by the Sponsor and its affiliates at their sole discretion. Those markets include
________, ________, ________ and ________. The Sponsor then, through a service provider, calculates on each valuation period, the highest
volume venue during the 60-minute period prior to 4:00 ET for LTC. The Sponsor then identifies that market as the principal market for
LTC during that period, and uses the price for LTC from that venue at 4:00 ET as the principal market price.
76
DESCRIPTION
OF THE TRUST
The Trust is a Delaware Statutory
Trust that was formed on December 10, 2024, by the filing of the Certificate of Trust with the Delaware Secretary of State in accordance
with the provisions of the Delaware Statutory Trust Act ("DSTA"). The Trust operates pursuant to the Trust Agreement.
The Trust holds only LTC and
cash. The Trust is expected from time to time to issue Baskets in exchange for cash and to distribute cash in connection with redemptions
of Baskets. The investment objective of the Trust is for the Shares to reflect the performance of the value of LTC as represented by the
Index, less the Trust's liabilities and expenses. The Sponsor believes that, for many investors, the Shares will represent a cost-effective
and convenient investment relative to a direct, outright investment in LTC.
The Shares represent units
of fractional undivided beneficial interest in, and ownership of, the Trust. The Trust is passive and is not managed like a corporation
or an active investment vehicle. The LTC held by the Custodians on behalf of the Trust will be transferred out of the LTC Account only
in the following circumstances: transferred to pay the Sponsor's Fee, transferred to be sold in connection with the redemption of
Baskets, transferred to be sold on an as-needed basis to pay Additional Trust Expenses, sold on behalf of the Trust in the event the Trust
terminates and liquidates its assets or as otherwise required by law or regulation. Assuming that the Trust is treated as a grantor trust
for U.S. federal income tax purposes, each delivery or sale of LTC to pay the Sponsor's Fee or any Additional Trust Expenses will
be a taxable event for Shareholders. See "U.S. Federal Income Tax Consequences—Tax Consequences to U.S. Holders."
The Trust is not registered
as an investment company under the Investment Company Act and the Sponsor believes that the Trust is not required to register under the
Investment Company Act. The Trust will not hold or trade in commodity futures contracts or other derivative contracts regulated by the
CEA, as administered by the CFTC. The Sponsor believes that the Trust is not a commodity pool for purposes of the CEA, and that neither
the Sponsor nor the Trustee is subject to regulation as a commodity pool operator or a commodity trading adviser in connection with the
operation of the Trust.
The Trust expects to create
and redeem Shares from time to time but only in Baskets. A Basket equals a block of 5,000 Shares. The number of outstanding Shares is
expected to increase and decrease from time to time as a result of the creation and redemption of Baskets. The creation and redemption
of Baskets require the delivery to the Trust, or the distribution by the Trust, of the cash value of LTC represented by the Baskets being
created or redeemed (net of accrued expenses and liabilities). The Trust is obligated to convert any cash contributed to LTC as soon as
practicable, except to the extent necessary to pay expenses. The creation and redemption of a Basket may be made in exchange for the delivery
to the Trust, or the distribution by the Trust, of cash equal to that NAV per Share for that day multiplied by 5,000 (or such other number
of Shares then constituting a Basket), adjusted for any applicable Execution Charges. Each Share in the initial Baskets will be priced
at $__ per Share. The cash required to create a Basket, or to be delivered upon a redemption of a Basket, will gradually decrease over
time due to the transfer or sale of the Trust's LTC to pay the Sponsor's Fee and any Additional Trust Expenses. The Trust
will not accept or distribute LTC in exchange for Baskets. The Sponsor recognizes that the size of the Baskets may impact the effectiveness
of the arbitrage mechanism of the Trust's creation and redemption process, and accordingly may adjust the size of the Baskets to
enhance the activities of the Authorized Participants in the secondary market for the Trust's Shares. See "Plan of Distribution."
The Administrator will determine
the Trust's LTC Holdings (which is the aggregate U.S. dollar value, based on the LTC Index Price, of the Trust's LTC less
its liabilities) on each day the Shares trade on Nasdaq as of 4:00 p.m. ET or as soon thereafter as practicable. The Administrator will
also determine the LTC Holdings per Share, which equals the Trust's LTC Holdings divided by the number of outstanding Shares. Each
business day, the Sponsor will publish the Trust's LTC Holdings and LTC Holdings per Share on the Trust's website, https://coinshares.com/us/etf/,
as soon as practicable after the Trust's LTC Holdings and LTC Holdings per Share have been determined by the Administrator. See
"Use of the Compass Crypto Reference Index Litecoin - 4pm NY Time."
The Trust's assets will
consist solely of LTC and cash. Each Share will represent a proportional interest, based on the total number of Shares outstanding, in
the LTC held by the Trust, less the Trust's liabilities (which include accrued but unpaid fees and expenses). The Sponsor expects
that the market trading price of the Shares will fluctuate over time in response to the market prices of LTC. In addition, the Sponsor
expects that the trading price of the Shares will reflect the estimated accrued but unpaid expenses of the Trust.
Investors may obtain on a
24-hour basis LTC pricing information from various financial information service providers or Litecoin Blockchain information sites. Current
LTC Index Prices are also generally available with bid/ask spreads directly from LTC Exchanges. As of the date of this Prospectus, the
Selected Exchanges of the Index were ____, ____, ____, ____, ____ and ____. Market prices for the Shares will be available from a variety
of sources, including brokerage firms, information websites and other information service providers. In addition, on each business day
the Trust's website will provide pricing information for the Shares.
The Trust has no fixed termination
date.
77
THE SPONSOR
The Trust's Sponsor
is CoinShares Co., a Delaware corporation and a wholly owned subsidiary by CoinShares International Limited. The Sponsor's principal
place of business is 437 Madison Avenue, 28
th
Floor, New York, NY 10022 and its telephone number is 646-308-1518. Under the
Delaware General Corporation Law and the governing documents of the Sponsor, CoinShares International Limited, the sole shareholder of
the Sponsor, is not responsible for the debts, obligations and liabilities of the Sponsor solely by reason of being the sole shareholder
of the Sponsor.
CoinShares International Limited
and its subsidiaries have significant experience sponsoring exchange-traded funds and similar products in Europe. The Sponsor has not
sponsored an exchange-traded vehicle prior to the Trust.
The Sponsor's
Role
The Sponsor arranged for and
paid the costs related to the creation of the Trust and the Sponsor arranges for the registration of the Shares for their public offering
in the United States and their listing on Nasdaq. As consideration for its receipt of the Sponsor's Fee from the Trust, the Sponsor
is obligated to pay the Sponsor-paid Expenses.
The Sponsor is generally responsible
for the administration of the Trust under the provisions of the Trust Agreement. This includes (i) selecting and monitoring the Trust's
Service Providers and from time to time engaging additional, successor or replacement Service Providers and (ii) upon dissolution of the
Trust, distributing the Trust's remaining LTC or the cash proceeds of the sale of the Trust's remaining LTC to the owners
of record of the Shares.
The Sponsor may transfer all
or substantially all of its assets to an entity that carries on the business of the Sponsor if at the time of the transfer the successor
assumes all of the obligations of the Sponsor under the Trust Agreement. In such an event, the Sponsor will be relieved of all further
liability under the Trust Agreement.
The Sponsor's Fee is
paid by the Trust to the Sponsor as compensation for services performed under the Trust Agreement and for the Sponsor's agreement
to pay the Sponsor-paid Expenses. See "Activities of the Trust—Trust Expenses."
Marketing Agent Agreement
The Sponsor has entered into
a Marketing Agent Agreement with an independent third party to assist the Sponsor in distributing the Shares, developing an ongoing marketing
plan for the Trust, preparing marketing materials regarding the Shares, including the content on the Trust's website, https://coinshares.com/us/etf/____/,
executing the marketing plan for the Trust and providing strategic and tactical research on the global LTC market. For more information
about the distribution of the Shares, see "Plan of Distribution."
Index License Agreement
The Benchmark Administrator
and the Sponsor have entered into an index license agreement (the "Index License Agreement") governing the Sponsor's
use of the Index for calculation of the LTC Index Price. The Benchmark Administrator may adjust the calculation methodology for the Index
without notice to, or consent of, the Trust or its Shareholders. Under the Index License Agreement, the Sponsor pays a monthly fee and
a fee based on the Trust's LTC Holdings to the Benchmark Administrator in consideration of its license to the Sponsor of Index-related
intellectual property.
Management of the Sponsor
Under the Trust Agreement,
all management functions of the Trust have been delegated to and are conducted by the Sponsor, its agents and its affiliates, including
without limitation, the Custodians and their agents. As officers of the Sponsor, Jean-Marie Mognetti, the principal executive officer
of the Sponsor, and Charles Butler, the principal financial officer and principal accounting officer of the Sponsor, may take certain
actions and execute certain agreements and certifications for the Trust, in their capacity as the principal officers of the Sponsor. Mr.
Mognetti has served as principal executive officer since _________, 202_, and Mr. Butler has served as principal financial officer and
principal accounting officer since ________, 202_. Both Mr. Mognetti and Mr. Butler hold their positions for an indefinite term. Mr. Mognetti
and Mr. Butler also serve as officers and directors of other affiliates and subsidiaries of CoinShares International Limited, the Sponsor's
parent company.
78
Jean-Marie Mognetti, Principal Executive Officer
Jean-Marie Mognetti is the
CEO and Co-founder of CoinShares International Limited ("CoinShares"), a leading European investment company specializing
in digital assets. CoinShares is the parent company of the Sponsor. Mr. Mognetti holds a Masters in Mathematical Trading and Finance from
Sir John Cass Business School. He is a seasoned commodity trader, having developed advanced expertise in areas such as quantitative analysis,
risk management, and alpha generation. His skills extend to managing trading programs focused on macroeconomic commodities, notably cryptocurrencies.
Before co-founding CoinShares in 2014, Mr. Mognetti served as a quantitative trader at Hermes Commodities Fund Managers. His role there
was instrumental in establishing and implementing trading strategies based on rigorous quantitative risk management approaches.
Charles Butler, Principal Financial Officer and Principal Accounting
Officer
Charles Butler trained with
PricewaterhouseCoopers and is a fellow of the Institute of Chartered Accountants in England and Wales with more than 20 years of financial
services experience.  Charles's experience covers audit, accountancy, funds, trusts, and private wealth predominantly in the offshore
financial services industry.  Prior to joining CoinShares in September 2017, Charles was a Senior Debt Fund Manager at BNP Paribas
in Jersey.  At CoinShares Charles has responsibility for finance and tax matters, and is a director of a number of group companies.
THE TRUSTEE
CSC Delaware Trust Company
(formerly Delaware Trust Company), a Delaware corporation, serves as Delaware trustee of the Trust under the Trust Agreement. The Trustee
has its principal office at 251 Little Falls Drive, Wilmington, Delaware 19808. The Trustee is unaffiliated with the Sponsor. A copy of
the Trust Agreement is available for inspection at the Trustee's principal office identified above.
The Trustee's Role
The Trustee is appointed to
serve as the trustee of the Trust in the State of Delaware for the sole purpose of satisfying the requirement of Section 3807(a) of the
DSTA that the Trust have at least one trustee with a principal place of business in the State of Delaware. The duties of the Trustee will
be limited to (i) accepting legal process served on the Trust in the State of Delaware and (ii) the execution of any certificates required
to be filed with the Delaware Secretary of State which the Delaware Trustee is required to execute under the DSTA. To the extent that,
at law or in equity, the Trustee has duties (including fiduciary duties) and liabilities relating thereto to the Trust or the Shareholders,
such duties and liabilities will be replaced by the duties and liabilities of the Trustee expressly set forth in the Trust Agreement.
The Trustee will have no obligation to supervise, nor will it be liable for, the acts or omissions of the Sponsor, Transfer Agent, Administrator,
Custodians or any other Person.
Neither the Trustee, either
in its capacity as trustee or in its individual capacity, nor any director, officer or controlling person of the Trustee is, or has any
liability as, the issuer, director, officer or controlling person of the issuer of Shares. The Trustee's liability in connection
with the issuance and sale of Shares is limited solely to the express obligations of the Trustee as set forth in the Trust Agreement.
The Trustee has not prepared
or verified, and will not be responsible or liable for, any information, disclosure or other statement in this prospectus or in any other
document issued or delivered in connection with the sale or transfer of the Shares. The Trust Agreement provides that the Trustee will
not be responsible or liable for the genuineness, enforceability, collectability, value, sufficiency, location or existence of any of
the LTC or other assets of the Trust. See "Description of the Trust Agreement."
The Trustee is permitted to
resign upon at least 180 days' notice to the Trust. The Trustee will be compensated by the Sponsor and indemnified by the Sponsor
and the Trust against any expenses it incurs relating to or arising out of the formation, operation or termination of the Trust, or the
performance of its duties pursuant to the Trust Agreement except to the extent that such expenses result from gross negligence, willful
misconduct or bad faith of the Trustee. The Sponsor has the discretion to replace the Trustee.
The Trustee's fees and
expenses under the Trust Agreement will be paid by the Sponsor.
79
THE TRANSFER
AGENT
________ will serve as the
Transfer Agent of the Trust under the Trust Agreement and pursuant to the terms and provisions of the Transfer Agency and Service Agreement.
The Transfer Agent has its principal office at ________
The Transfer Agent's Role
The Transfer Agent holds the
Shares in book-entry form. The Administrator directs the Transfer Agent to credit or debit the number of Baskets to the applicable Authorized
Participant. The Transfer Agent will issue or cancel each Authorized Participant's Basket, as applicable. The Transfer Agent will
also assist with the preparation of Shareholders' account and tax statements.
The Sponsor will indemnify
and hold harmless the Transfer Agent, and the Transfer Agent will incur no liability for the refusal, in good faith, to make transfers
which it, in its judgment, deems improper or unauthorized.
The Transfer Agent Fee is
a Sponsor-paid Expense to be assumed and paid by the Sponsor.
The Transfer Agency and Services
Agreement will have an initial three-year term and will automatically be renewed for successive one-year periods, unless terminated pursuant
to the terms of the agreement. The Transfer Agent may terminate its services for certain material breaches of the Transfer Agency and
Services Agreement and terminations as may be required or occasioned by law. Either party may terminate the Transfer Agency and Services
Agreement upon 90 days' prior written notice to the other party.
THE ADMINISTRATOR
________ will serve as the
Administrator of the Trust under the Trust Agreement and pursuant to the terms and provisions of the Trust Administration and Accounting
Agreement. The Administrator has its principal office at ________.
The Administrator's Role
Pursuant to the Trust Administration
and Accounting Agreement, the Administrator is generally responsible for the day-to-day administration of the Trust. The responsibilities
of the Administrator include (i) preparing and providing periodic reports on behalf of the Trust to investors, (ii) processing orders
to create and redeem Baskets and coordinating the processing of such orders with the Custodians, the Transfer Agent and DTC, (iii) publishing
the Trust's LTC Holdings and LTC Holdings per Share each business day at 4:00 p.m. ET or as soon thereafter as practicable and (iv)
instructing the Custodians to transfer the Trust's LTC as needed to pay the Sponsor's Fee and any Additional Trust Expenses.
The Trust will indemnify the
Administrator, and the Administrator will incur no liability for its reliance upon (i) any law, act, regulation or interpretation of the
same even though the same may thereafter have been altered, changed, amended or repealed, (ii) the Trust's offering materials or
documents (excluding information provided by the Administrator), (iii) any instructions or (iv) any opinion of legal counsel for the Trust
or the Administrator, or arising out of transactions or other activities of the Trust which occurred prior to the commencement of the
Trust Administration and Accounting Agreement.
Under the Trust Administration
and Accounting Agreement, the Administrator has agreed to provide its services for an initial term of three years with an automatic renewal
of successive one-year terms unless earlier terminated pursuant to the Trust Administration and Accounting Agreement. The Administrator
may terminate its services for certain material breaches of the Trust Administration and Accounting Agreement and terminations as may
be required or occasioned by law. Either party may terminate the Trust Administration and Accounting Agreement upon 90 days' prior
written notice to the other party.
80
AUTHORIZED
PARTICIPANTS
An Authorized Participant
must enter into an "Authorized Participant Agreement" with the Sponsor and the Trust to govern its placement of orders to
create and redeem Baskets. The Authorized Participant Agreement sets forth the procedures for the creation and redemption of Baskets and
for the delivery of LTC required for creations and redemptions. The Authorized Participant Agreement also provides the Sponsor and the
Administrator with the authority to terminate the relationship with an Authorized Participant if the Sponsor or Administrator determines
that an Authorized Participant does not to comply with the regulatory and registration requirements promulgated by FinCEN or other state
authorities.
Each Authorized Participant
must (i) be a registered broker-dealer or other securities market participant, such as a bank or other financial institution, that is
not required to register as a broker-dealer to engage in securities transactions and (ii) enter into an Authorized Participant Agreement
with the Sponsor.
A list of the current Authorized
Participants can be obtained from the Sponsor. As of the date of this Prospectus, the Trust has engaged ________, ________, ________,
________ and ________ as Authorized Participants. Additional Authorized Participants may be added at any time, subject to the discretion
of the Sponsor.
THE CUSTODIANS
The ________ Custodian
Under the ________ Custody
Agreement, the ________ Custodian is responsible for (1) safekeeping all of the LTC owned by the Trust allocated to it by the Sponsor,
(2) opening one or more accounts that hold the Trust's LTC and (3) facilitating the transfer of LTC required for the operation of
the Trust as directed by the Sponsor. The Custodian is chartered as a limited-purpose trust company by the NYDFS and is authorized by
the NYDFS to provide digital asset custody services. The Custodian is a wholly-owned subsidiary of ________.
Under the ________ Custody
Agreement, the ________ Custodian's liability is limited as follows, among others: (i) other than with respect to claims and losses
arising from spot trading of LTC, or fraud or willful misconduct, among others, the ________ Custodian's aggregate liability under
the ________ Custody Agreement shall not exceed the greater of (A) the greater of (x) $5 million and (y) the aggregate fees paid by the
Trust to the ________ Custodian in the 12 months prior to the event giving rise to the ________ Custodian's liability, and (B) the
value of the affected LTC or cash giving rise to the ________ Custodian's liability; (ii) the ________ Custodian's aggregate
liability in respect of each cold storage address shall not exceed $100 million; (iii) in respect of the ________ Custodian's obligations
to indemnify the Trust and its affiliates against third-party claims and losses to the extent arising out of or relating to, among others,
the ________ Custodian's violation of any law, rule or regulation with respect to the provision of its services, the ________ Custodian's
liability shall not exceed the greater of (A) $5 million and (B) the aggregate fees paid by the Trust to the ________ Custodian in the
12 months prior to the event giving rise to the ________ Custodian's liability; and (iv) in respect of any incidental, indirect,
special, punitive, consequential or similar losses, the ________ Custodian is not liable, even if the ________ Custodian has been advised
of or knew or should have known of the possibility thereof. The ________ Custodian is not liable for delays, suspension of operations,
failure in performance, or interruption of service to the extent it is directly due to a cause or condition beyond the reasonable control
of the ________ Custodian. Under the ________ Custody Agreement, except in the case of its negligence, fraud, material violation of applicable
law or willful misconduct, the ________ Custodian shall not have any liability, obligation, or responsibility for any damage or interruptions
caused by any computer viruses, spyware, scareware, Trojan horses, worms or other malware that may affect the Trust's computer or
other equipment, or any phishing, spoofing or other attack, unless the ________ Custodian fails to have commercially reasonable policies,
procedures and technical controls in place to prevent such damages or interruptions.
The ________ Custodian may
terminate the ________ Custody Agreement for any reason upon providing the applicable notice to the Trust, or immediately for Cause (as
defined in the ________ Custody Agreement), including, among others, if the Trust materially breaches the Prime Broker Agreement and such
breach remains uncured, undergoes a bankruptcy event, or fails to repay Trade Credits. The ________ Custodian may terminate the ________
Custody Agreement for any reason upon providing 30 days' notice to the Trust, or immediately for Cause (as defined below). The ________
Custody Agreement forms a part of the Prime Broker Agreement and is subject to the termination provisions in the Prime Broker Agreement.
The ________ Custodian
________ is also authorized
to safeguard the Trust's LTC holdings. ________ maintains one or more custody accounts on its books, pursuant to the terms of the
________ Custody Agreement, for the receipt, safekeeping, and maintenance of LTC.
81
________ and its affiliates,
including their officers, directors, agents, and employees, are not liable for any lost profits, special, incidental, indirect, intangible,
or consequential damages resulting from authorized or unauthorized use of the Trust or Sponsor's site or services. This includes
damages arising from any contract, tort, negligence, strict liability, or other legal grounds, even if ________ was previously advised
of, knew, or should have known about the possibility of such damages. However, this exclusion of liability does not extend to cases of
________'s fraud, willful misconduct, or gross negligence. In situations of gross negligence, ________'s liability is specifically
limited to the value of the digital assets or fiat currency that were affected by the negligence. Additionally, the total liability of
________ for direct damages is capped at the fees paid or payable to them under the relevant agreement during the three-month period immediately
preceding the first incident that caused the liability.
________ cold wallets are
supported by a $250 million insurance policy issued by Lloyd's of London. The specifics of the policy include Cyber Insurance, E&O,
and general specie. Any copying and theft of private keys, insider theft or dishonest acts by ________ employees or executives, and loss
of keys directly related to ________'s custody of keys would be covered by this amount at minimum. This insurance policy is shared
among all of ________'s clients and is not specific to the Trust or to customers holding LTC and may not be available or sufficient
to protect the Trust from all possible losses or sources of losses. The Sponsor may purchase additional insurance coverage through ________'s
underwriter, though the Sponsor has not purchased such additional insurance cover as of the date of this Prospectus. ________ is not FDIC-insured.
________ has established a business continuity plan that will support its ability to conduct business in the event of a significant business
disruption. This plan is reviewed and updated annually, and can be updated more frequently, if deemed necessary, by ________ in its sole
discretion. Should ________ be impacted by a significant business disruption, ________ aims to minimize business interruption as quickly
and efficiently as possible.
The ________ Custody Agreement
commenced on the effective date, as detailed in the agreement, and will continue for one (1) year, unless earlier terminated
in accordance with the terms of the ________ Custody Agreement. After the initial term, the ________ Custody Agreement will automatically
renew for successive renewal terms, as established on the agreement, unless either party notifies the other of its intention not to renew
with prior notice. ________ may terminate the ________ Custody Agreement for any reason upon providing at least thirty (30) days'
written notice to the Trust and to the Sponsor, or immediately if ________ perceives a risk of legal or regulatory non-compliance associated
with the Trust's custodial account activity, among others. The Sponsor may terminate the ________ Custody Agreement at any time
upon providing at least thirty (30) days' written notice to ________, paying outstanding amounts and an early termination fee.
The ________ Custodian
________ is also authorized
to safeguard the Trust's LTC holdings. ________ maintains one or more custody accounts on its books, pursuant to the terms of the
________ Custody Agreement, for the receipt, safekeeping, and maintenance of LTC. CoinShares International Limited, the parent of the
Sponsor, holds a minority equity interest in ________ and is therefore an affiliate of the Sponsor.
In general, ________'s
(and its affiliates') liability arising out of or relating to the ________ Custody Agreement will be limited to those damages that
are caused directly by ________'s failure to exercise such care and skill to be reasonably expected of a professional custodian
for hire of assets of the same type as the Trust's assets, acting without gross negligence, willful default or fraud. More particularly,
________'s liability is limited by the following, among others: (i) in no event shall ________ (or its affiliates) be liable for
any reduction in the value of the Trust's assets; (ii) in no event shall ________ (or its affiliates) be liable for any losses suffered
or incurred due to an event (or series of connected events) which could reasonably be considered to be outside of ________'s control;
(iii) in no event shall ________ (or its affiliates) be liable for any indirect or consequential loss, loss of profits, contract, revenue,
cost, opportunity, anticipated savings, business and/or goodwill, in each case, arising out of or in connection with the ________ Custody
Agreement, even if that loss or damage was reasonably foreseeable or ________ (or its affiliates) was aware of the possibility of that
loss or damage arising. To the extent that ________ (or its affiliates) is liable in accordance with the terms of the ________ Custody
Agreement, ________'s (or its affiliates') liability to the Trust in the case of Theft (a "Theft" is defined in
the ________ Custody Agreement as unauthorized access to ________'s systems by a third party resulting in a reduction of the amount
of the Trust's assets held by ________ on behalf of the Trust) shall be limited to the higher of the service fees (paid and/or payable)
by the Trust to ________ under the ________ Custody Agreement during the twenty-four (24) month period immediately preceding the Theft,
or the actual amount received by ________ under its insurance policies maintained, if any, for the Theft. Other than in the case of Theft,
to the extent that ________ (or its affiliates) is liable given the limitation and exclusions outlined in the ________ Custody Agreement,
________ (or its affiliates) shall not be liable to the Trust (whether arising in contract, tort (including negligence), breach of statutory
duty or otherwise) for any sum which would result in ________'s (or its affiliates) total liability under the ________ Custody Agreement
to exceed the service fees paid or payable by the Trust to ________ under the agreement during the twelve (12) month period immediately
preceding the event (or series of connected events) giving rise to the liability.
82
________ maintains comprehensive
insurance coverage in relation to digital assets under custody, that is reviewed and updated on an ongoing basis. This program encompasses
crime and specie policies and protects against risks related to third-party computer and fund transfer fraud, employee theft, collusion,
and physical device or backup theft, loss or damage. The policy is designed to protect all clients and their on-chain segregated custody
wallets, the $50 million (USD) limit is aggregated and pooled and not dedicated specifically to any individual client.
The ________ Custody Agreement
commenced on the effective date, as detailed in the agreement, and will continue for thirty-six (36) months, unless earlier terminated
in accordance with the terms of the ________ Custody Agreement. After the initial term, the ________ Custody Agreement will automatically
renew for successive twelve (12) month periods, as established on the agreement, unless either party notifies the other of its intention
to terminate in accordance with the terms of the agreement. ________ may terminate the ________ Custody Agreement for any reason upon
providing at least three (3) months' written notice to the Trust, or immediately upon written notice to the Trust if: (i) ________
determines, in its sole discretion, that continued provision of the custody services would result in violation of applicable law or regulation
relating to either ________ or the Trust and the parties are unable to amend the relevant provisions of the ________ Custody Agreement
in accordance with the terms of the agreement, (ii) a force majeure event, as defined in the ________ Custody Agreement, continues for
at least forty-five (45) days, or (iii) the Trust does not utilize the custody services set forth in the ________ Custody Agreement for
a period of twelve (12) months from the effective date of the agreement.
THE PRIME BROKER
AND THE TRADE CREDIT LENDER
Prime Broker
Pursuant to the ________ Custody
Agreement, a portion of the Trust's LTC holdings and cash holdings from time to time may be held with ________, an affiliate of
the ________ Custodian, and the Prime Broker, in the Trading Account, in connection with creations and redemptions of Baskets for which
the Prime Broker is a LTC Trading Counterparty and for sales of LTC to pay the Sponsor's Fee and Trust expenses not assumed by the
Sponsor. The Sponsor may, at its sole discretion, add or terminate prime brokers at any time, but it will have no obligation whatsoever
to do so or to seek any particular terms for the Trust from other such prime brokers.
These periodic holdings held
in the Trading Account with the Prime Broker represent an omnibus claim on the Prime Broker's LTC held on behalf of clients; these
holdings exist across a combination of omnibus hot wallets, omnibus cold wallets or in accounts in the Prime Broker's name on a
trading venue (including third-party venues and the Prime Broker's own execution venue) where the Prime Broker executes orders to
buy and sell LTC on behalf of clients (each such venue, a "Connected Trading Venue"). The Sponsor will not direct the Prime
Broker to exchange the Trust's assets on any specific Connected Trading Venue. The Prime Broker is not required to hold any of the
LTC in the Trust's Trading Account in cold storage or to hold any such LTC in segregation, and neither the Trust nor the Sponsor
can control the method by which the Prime Broker holds the LTC credited to the Trust's Trading Account. Within the Trading Account,
the ________ Custody Agreement provides that the Trust does not have an identifiable claim to any particular LTC. Instead, the Trust's
Trading Account represents an entitlement to a
pro rata
share of the LTC the Prime Broker has allocated to the omnibus hot wallets,
omnibus cold wallets, and the accounts in the Prime Broker's name that the Prime Broker maintains at Connected Trading Venues (which
are typically held on an omnibus, rather than segregated, basis).
Pursuant to the ________ Custody
Agreement, the Trust may engage in purchases or sales of LTC by placing orders with the Prime Broker. The Prime Broker will route orders
placed by the Sponsor through the Prime Broker's execution platform (the "Trading Platform") to a Connected Trading
Venue where the order will be executed. Each order placed by the Sponsor will be sent, processed and settled at each Connected Trading
Venue to which it is routed. The Prime Broker may have actual or potential conflicts of interest in connection with providing Prime Broker
Services, including when acting as a LTC Trading Counterparty in connection with creations and redemptions of Baskets. This dual role
may create a situation where the interests of the Prime Broker do not align with the interests of Shareholders. The Prime Broker Agreement
further provides that the Prime Broker is subject to certain conflicts of interest, including: (i) the Trust's orders may be routed
to the Prime Broker's exchange platform where the orders may be executed against other customers of the Prime Broker or with the
Prime Broker acting as principal, (ii) the beneficial identity of the purchaser or seller with respect to the Trust's order is unknown
and therefore may inadvertently be another client of the Prime Broker, (iii) the Prime Broker does not engage in front-running, but is
aware of the Trust's orders or imminent orders and may execute a trade for its own inventory (or the account of an affiliate) while
in possession of that knowledge and (iv) the Prime Broker may act in a principal capacity with respect to certain of the Trust's
orders. As a result of these and other conflicts, when acting as principal, the Prime Broker may have an incentive to favor its own interests
and the interests of its affiliates over the Trust's interests. However, the Prime Broker Agreement also requires the Prime Broker
to have in place certain policies and procedures designed to mitigate such conflicts. The Prime Broker will maintain appropriate and effective
arrangements to eliminate or manage conflicts of interest, including segregation of duties, information barriers and training.
83
Subject to the foregoing,
and to certain policies and procedures that the ________ Custody Agreement requires the Prime Broker to have in place to mitigate conflicts
of interest when executing the Trust's orders, the ________ Custody Agreement provides that the Prime Broker shall have no liability,
obligation, or responsibility whatsoever for the selection or performance of any Connected Trading Venue, and that other Connected Trading
Venues and/or trading venues not used by the Prime Broker may offer better prices and/or lower costs than the Connected Trading Venue
used to execute the Trust's orders.
To the extent the Trust sells
LTC through the Prime Broker, the Trust's orders will be executed at the Connected Trading Venues that have been approved in accordance
with the Prime Broker's due diligence and risk assessment process. The Prime Broker has represented that its due diligence on Connected
Trading Venues includes reviews conducted by the legal, compliance, security, privacy and finance and credit-risk teams, The Connected
Trading Venues, which are subject to change from time to time, currently include ________, ________, ________ and ________, the exchange
operated by the Prime Broker, as well as four additional non-bank market makers ("NBMMs"). The Prime Broker has represented
to the Trust that it is unable to name the NBMMs due to confidentiality restrictions.
Once the Sponsor places an
order to purchase or sell LTC on the Trading Platform, the associated LTC or cash used to fund or fill the order, if any, will be placed
on hold and will generally not be eligible for other use or withdrawal from the Trust's Trading Account. The Trust's Vault
Accounts may be used directly to fund orders. With each Connected Trading Venue, the Prime Broker shall establish an account in the Prime
Broker's name, or in its name for the benefit of clients, to trade on behalf of its clients, including the Trust, and the Trust
will not, by virtue of the Trading Account the Trust maintains with the Prime Broker, have a direct legal relationship, or account with,
any Connected Trading Venue. The Vault Account at the ________ Custodian is subject to the lien to secure outstanding Trade Credits in
favor of the Trade Credit Lender discussed below.
The Prime Broker is permitted
to suspend or terminate the Prime Broker Agreement under certain circumstances. The Prime Broker, for itself or as agent for the ________
Custodian and Trade Credit Lender, may not terminate the Prime Broker Agreement (including the ________ Custody Agreement) or suspend,
restrict terminate or modify the Prime Broker Services (as defined below) on less than 30 days' notice, except in the event of (i)
a Change in Law (defined below) or (ii) a Cause event (as defined below). The Prime Broker Agreement defines "________ Prime Broker
Services" as (i) the custody of the Trust's LTC in its Vault Account, the processing of deposits and withdrawals and other
custody transactions, (ii) access to the Prime Broker's trading platform and the execution and settlement of all orders for the
sale of LTC submitted by the Trust, and (iii) the extension of credit to the Trust by the Trade Credit Lender pursuant to the Trade Financing
Agreement.
The Prime Broker Agreement
defines a "Change in Law" as any change in or adoption of any applicable law, rule, or regulation which, in the reasonable
opinion of counsel to the Prime Broker would prohibit or materially impede some or all of the arrangement contemplated by the Prime Broker
Agreement. Upon the occurrence of a Change in Law, the parties will negotiate to agree on modifications to the Prime Broker Agreement
or the ________ Prime Broker Services that would enable compliance with such Change in Law or, in the case of a material impediment, reduce
the impact to the parties of such Change in Law and the ________ Entities shall continue to provide the ________ Prime Broker Services
unless prohibited from doing so by the Change in Law. If the parties cannot agree on modifications within thirty (30) days following notice
from the Prime Broker or if the Change in Law requires that the Prime Broker immediately ceases providing any ________ Prime Broker Services,
the Prime Broker may, upon written notice, suspend, restrict or terminate the ________ Prime Broker Services solely to the extent necessary
to account for the Change in Law, provided that any such suspension, restriction, termination or modification is narrowly tailored.
Upon the occurrence and continuation
of a Cause event, and after giving effect to any notice requirement and cure period that may apply, the Prime Broker may, at its reasonable
discretion, terminate the Prime Broker Agreement and accelerate the Trust's obligations, and/or take certain other actions. The
Prime Broker Agreement defines "Cause" to mean, (i) a material breach of the Prime Broker Agreement (other than the ________
Custody Agreement) which is uncured for 10 days; (ii) a material breach of the ________ Custody Agreement which is uncured for 30 days;
(iii) a Bankruptcy Event (as defined below); and (iv) the failure by the Trust to repay Trade Credits by the applicable deadline specified
in the Trade Financing Agreement which, in the event the failure results solely from an error or omission of an administrative or operational
nature, remains uncured for a period of one business day.
84
"Bankruptcy Event"
is defined in the Prime Broker Agreement to mean the party is (i) dissolved (other than pursuant to a consolidation, amalgamation or merger);
(ii) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become
due; (iii) makes a general assignment, arrangement or composition with or for the benefit of its creditors; (iv) institutes or has instituted
against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting creditors' rights, or a petition is presented for its winding-up or liquidation, and in the case of any such
proceeding or petition instituted or presented against it, such proceeding or petition (I) results in a judgment of insolvency or bankruptcy
or the entry of an order for relief or the making of an order for its winding-up or liquidation or (II) is not dismissed, discharged,
stayed or restrained in each case within 30 days of the institution or presentation thereof; (v) has a resolution passed for its winding-up,
official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (vi) seeks or becomes subject to
the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it
or for all or substantially all its assets; (vii) has a secured party take possession of all or substantially all its assets or has a
distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all
its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each
case within 30 days thereafter; (viii) causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction,
has an analogous effect to any of the events specified in clauses (i) to (vii) (inclusive); or (ix) takes any action in furtherance of,
or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.
The Trust may terminate the
Prime Broker Agreement, including the ________ Custody Agreement, in whole or in part for any reason upon 30 days' notice to the
Prime Broker, for itself or as agent on behalf of the ________ Custodian or Trade Credit Lender, or upon a ________ Termination Event.
The Prime Broker Agreement defines a "________ Termination Event" to mean the occurrence and continuance of (i) a Bankruptcy
Event with respect to any ________ Entity, (ii) the failure of any ________ Entity to sell or withdraw or transfer the Trust's LTC
in accordance with the Trust's instructions within the time periods set forth in the Prime Broker Agreement and such failure is
not cured within two (2) business days following the Trust providing written notice to the relevant ________ Entity ("CB Return
Cure"); provided, however, that (A) if, prior to the expiration of the CB Return Cure, the Prime Broker transfers cash to the Trust
in an amount equal to the value of the LTC based on the Benchmark Valuation (defined as the Compass Crypto Reference Index Litecoin -
4pm NY Time) as of the time that the request to sell, transfer or withdraw was originally made by the Trust (the "LTC Cash Value")
or if the Prime Broker delivers cash collateral to an account designated by the Trust and in which the Trust has a perfected, first priority
security interest and in an amount equal to the LTC Cash Value until the relevant LTC is sold, withdrawn or transferred or the Trust elects
to receive such amount in cash in lieu of the Prime Broker's obligation to sell, withdraw or transfer the relevant LTC, in each
cash, such failure will be deemed cured; provided, further that, the Trust shall have the right to choose whether to receive the LTC Cash
Value in lieu of the relevant LTC or receive the LTC Cash Value as cash collateral, or (B) if such failure is due to a technology or security
issue where, in the commercially reasonable opinion of the Prime Broker, returning the relevant LTC would result in material risk to the
Trust or the Prime Broker or may result in the relevant LTC being lost or otherwise not successfully returned and the Prime Broker promptly
notifies the Trust promptly upon Client's notice of such failure, (1) the Trust may request that the Prime Broker still sell, withdraw
or transfer the LTC, but the Prime Broker will have no liability with respect to any such sell, withdrawal or transfer (unless the Prime
Broker or any of the ________ Entities act with negligence unrelated to such technology or security issue) and any failure to withdraw
or transfer shall not result in a ________ Termination Event if the Trust does not receive the withdrawn or transferred LTC or the proceeds
of any such sale due to such technology or security issue, or (2) if the Trust does not elect to have the Prime Broker still make the
sale, withdrawal or transfer, a ________ Termination Event shall not occur while the relevant security or technology event is occurring
and continuing, (iii) the failure of any ________ Entity to withdraw or transfer cash to the Trust in accordance with the Trust's
instructions within the time periods set forth in the Prime Broker Agreement and such failure is not cured within one (1) business day
following the Trust providing written notice to the relevant ________ Entity, (iv) a ________ Entity intentionally or willfully, materially
breaches any provision of the Prime Broker Agreement (other than the provisions of the ________ Custody Agreement) and such breach remains
uncured for a period of 10 calendar days after notice of such breach is provided by the Trust to the Prime Broker; or (v) a ________ Entity
intentionally or willfully, materially breaches any provision of the ________ Custody Agreement and such breach remains uncured for a
period of 30 calendar days after notice of such breach is provided by the Trust to the Prime Broker.
The Prime Broker does not
guarantee uninterrupted access to the Trading Platform or the services it provides to the Trust. Under certain circumstances, the Prime
Broker is permitted to halt or suspend trading on the Trading Platform, or impose limits on the amount or size of, or reject, the Trust's
orders, including in the event of, among others, (a) delays, suspension of operations, failure in performance, or interruption of service
that are directly due to a cause or condition beyond the reasonable control of the Prime Broker, (b) the Trust has engaged in unlawful
or abusive activities or fraud, or (c) a security or technology issue occurred and is continuing that results in the Prime Broker being
unable to provide trading services or accept the Trust's order, in each case, subject to certain protections for the Trust.
Neither the Prime Broker nor
any other ________ entity is permitted to withdraw the Trust's LTC from the Trust's Vault Accounts, or loan, hypothecate,
pledge or otherwise encumber the Trust's LTC, without the consent of the Trust. The Trading Account is subject to the lien to secure
outstanding Trade Credits in favor of the Trade Credit Lender discussed below.
85
Under the Prime Broker Agreement,
the Prime Broker's liability is limited as follows, among others: (i) other than with respect to claims and losses arising from
spot trading of LTC, or fraud or willful misconduct, among others, the Prime Broker's aggregate liability shall not exceed the greater
of (A) the greater of (x) $5 million and (y) the aggregate fees paid by the Trust to the Prime Broker in the 12 months prior to the event
giving rise to the Prime Broker's liability, and (B) the value of the cash or affected LTC giving rise to the Prime Broker's
liability; (ii) in respect of the Prime Broker's obligations to indemnify the Trust and its affiliates against third-party claims
and losses to the extent arising out of or relating to, among others, the Prime Broker's violation of any law, rule or regulation
with respect to the provision of its services, or the full amount of the Trust's assets lost due to the insolvency of or security
event at a Connected Trading Venue, the Prime Broker's liability shall not exceed the greater of (A) $5 million and (B) the aggregate
fees paid by the Trust to the Prime Broker in the 12 months prior to the event giving rise to the Prime Broker's liability; and
(iii) in respect of any incidental, indirect, special, punitive, consequential or similar losses, the Prime Broker is not liable, even
if the Prime Broker has been advised of or knew or should have known of the possibility thereof. The Prime Broker is not liable for delays,
suspension of operations, failure in performance, or interruption of service to the extent it is directly due to a cause or condition
beyond the reasonable control of the Prime Broker. Both the Trust and the Prime Broker and its affiliates (including the ________ Custodian)
are required to indemnify each other under certain circumstances. The Prime Broker Agreement is governed by New York law and provides
that disputes arising under it are subject to arbitration.
The Prime Broker Agreement
provides that the ________ Entities may have actual or potential conflicts of interest in connection with providing the Prime Broker Services
including that (i) orders to buy or sell LTC may be routed to the Prime Broker's platform ("________ Platform") where
such orders may be executed against other ________ customers or with the Prime Broker acting as principal, (ii) the beneficial identity
of the purchaser or seller with respect to an order is unknown and therefore may inadvertently be another ________ customer, (iii) the
Prime Broker does not engage in front-running, but is aware of orders or imminent orders and may execute a trade for its own inventory
(or the account of an affiliate) while in possession of that knowledge and (iv) the Prime Broker may act in a principal capacity with
respect to certain orders (e.g., to fill residual order size when a portion of an order may be below the minimum size accepted by the
Connected Trading Venues). As a result of these and other conflicts, when acting as principal, the ________ Entities may have an incentive
to favor their own interests and the interests of their affiliates over the Trust's interests and have in place certain policies
and procedures that are designed to mitigate such conflicts. The Prime Broker will maintain appropriate and effective arrangements to
eliminate or manage conflicts of interest, including segregation of duties, information barriers and training. The Prime Broker will notify
the Trust of changes to its business that have a material adverse effect on the Prime Broker's ability to manage its conflicts of
interest. The ________ Entities shall execute trades pursuant to such policies and procedures; provided that the ________ Entities (a)
shall execute in a commercially reasonable amount of time (i) any marketable orders appropriately entered by the Trust and (ii) any other
pending orders by the Trust received by the ________ Entities that become marketable, (b) for any order that the Prime Broker receives
from the Trust, the Prime Broker will make commercially reasonable efforts to route orders for execution to the Connected Trading Venue
offering the most favorable price for the Trust's LTC sale orders, including consideration of any gas fees or similar fees related
to a particular Blockchain at the time that such orders are routed for execution, and (c) shall not knowingly enter into a transaction
for the benefit of (x) the ________ Entities, or (y) any other client received after the Trust's order, ahead of any order received
from the Trust. For purposes of the foregoing, a marketable order is a sell order equivalent to or better than the best bid price on any
Connected Trading Venue (or any venue that a ________ Entity may use) at a given moment. The Prime Broker agrees to direct the Trust's
orders in a manner that does not systematically favor the ________ Platform or Connected Trading Venues that provide financial incentives
to the Prime Broker; provided, however, that under certain circumstances the Prime Broker may choose to intentionally route to the ________
Platform due to temporary conditions affecting Connected Trading Venues (e.g., connectivity problems of the Connected Trading Venue or
funding constraints).
The Trade Credit Lender
The Sponsor does not intend
to fund the Trading Account at the Prime Broker with sufficient LTC to pay fees and expenses and instead intends to utilize the Trade
Financing Agreement for such fees and expenses. To avoid having to pre-fund purchases or sales of LTC in connection with cash creations
and redemptions that utilize the Prime Broker as a LTC Trading Counterparty and any sales of LTC to pay the Sponsor's Fee and any
other Trust expenses not assumed by the Sponsor, to the extent applicable, the Trust may borrow LTC or cash as Trade Credit from the Trade
Credit Lender on a short-term basis. This allows the Trust to buy or sell LTC through the Prime Broker in an amount that exceeds the cash
or LTC credited to the Trust's Trading Account at the Prime Broker at the time such order is submitted to the Prime Broker, which
is expected to facilitate the Trust's ability to process cash creations and redemptions and pay the Sponsor's Fee and any
other Trust expenses not assumed by the Sponsor, to the extent applicable, in a timely manner by seeking to lock in the LTC price on the
trade date for creations and redemptions or the payment date for payment of the Sponsor's Fee or any other Trust Expenses not assumed
by the Sponsor, rather than waiting for the funds associated with the creation to be transferred by the Cash Custodian to the Prime Broker
prior to purchasing the LTC or for the LTC held in the Vault Account to be transferred to a Trading Account prior to selling the LTC.
The Trust is required by the terms of the ________ Credit Committed Trade Financing Agreement, which is part of the Prime Broker Agreement,
to repay any extension of Trade Credit by the Trade Credit Lender by 6:00 p.m. ET on the business day following the day that the Trade
Credit was extended to the Trust. The Trade Credit Lender is only required to extend Trade Credits to the Trust to the extent such LTC
or cash is actually available to the Trade Credit Lender. For example, if the Trade Credit Lender is unable to borrow LTC to lend to the
Trust as a Trade Credit, or there is a material market disruption (as determined by the Trade Credit Lender in good faith and in its sole
discretion), the Trade Credit Lender is not obligated to extend Trade Credits to the Trust. To secure the repayment of Trade Credits,
the Trust has granted a first-priority lien to the Trade Credit Lender over the assets in its Trading Account and Vault Account at the
________ Custodian. If the Trust fails to repay a Trade Credit within the required deadline, the Trade Credit Lender is permitted to take
control of LTC or cash credited to the Trust's Trading Account and Vault Account at the ________ Custodian (though it is required
to exhaust the Trading Account prior to taking control of assets in such Vault Account) and liquidate them to repay the outstanding Trade
Credit. Trade Credits bear interest.
Interest rates on Trade Credits
("financing fee") are calculated as follows: where settlement of Trade Credits is to occur on the business day following the
execution date, the applicable stated interest rate divided by 365 (e.g., 11% + Fed Funds Target)/365) is to be paid on the aggregate
Trade Credit amount borrowed by the Trust. As a hypothetical example to illustrate how the financing fee is calculated, on December 28,
2023, the Fed Funds Target rate was 5.50%, so the hypothetical financing fee, based on an applicable stated interest rate of 11% + Fed
Funds Target, as of that date would be 11% + 5.5% divided by 365 on the borrowed funds.
86
The Trust's LTC holdings
are maintained with the Custodians rather than the Prime Broker, except in the limited circumstances of LTC that is held temporarily in
the Trading Account for purchases and sales of LTC in connection with cash creation and cash redemption Basket settlement that utilize
the Prime Broker as a LTC Trading Counterparty, or sales of LTC in connection with the payment of Sponsor's Fee and any other Trust
expenses not assumed by the Sponsor, to the extent applicable. In connection with a redemption order utilizing the Prime Broker or to
pay the Sponsor's Fee and expenses not assumed by the Sponsor, the Trust will first borrow LTC from the Trade Credit Lender using
the Trade Financing Agreement, and then sell this LTC. In connection with a purchase order utilizing the Prime Broker, the Trust will
first borrow cash from the Trade Credit Lender using the Trade Financing Agreement, and then purchase LTC. The purpose of borrowing the
LTC or cash used in connection with cash creation and redemption or to pay these fees and expenses from the Trade Credit Lender is to
lock in the LTC price on the trade date or the payment date, as applicable, rather than waiting for the funds associated with the creation
to be transferred by the Cash Custodian to the Prime Broker prior to purchasing the LTC or for the LTC held in the Vault Accounts to be
transferred to a Trading Account prior to selling the LTC (a process which may take up to twenty-four hours, or longer if the Litecoin
Blockchain is experiencing delays in transaction confirmation, or if there are other delays).
In the event Trade Credits
are unavailable from the Trade Credit Lender or become exhausted, the Sponsor would require the Authorized Participant to deliver cash
on the trade date so that a purchase order can be settled in a timely manner. The Trust may use financing when the LTC remains in the
Vault Account at the ________ Custodian at the point of intended execution of a sale of LTC. In the event Trade Credits are unavailable
or become exhausted in this situation, the Sponsor would instruct the Custodians to move LTC out of the Vault Accounts into the Trading
Account so that it could be sold directly in response to a redemption order or to pay fees and expenses. Under these circumstances, the
Trust may not be able to lock in the LTC price on the trade date or the payment date, as applicable, and would instead have to wait until
the transfer from the Vault Accounts to the Trading Account was completed before selling the LTC.
This could cause the execution
price associated with such trades, following the completion of the transfer, to materially deviate from the execution price that would
have existed on the original trade or payment date, which could negatively impact Shareholders.
In addition, to the extent
that the execution price for purchases and sales of LTC related to creations and redemptions and sales of LTC in connection with paying
the Sponsor's Fee and any other Trust expenses, to the extent applicable, deviate significantly from the Index price used to determine
the NAV of the Trust, the Shareholders may be negatively impacted.
With respect to a purchase
order, as between the Trust and the Authorized Participant, the Authorized Participant (or, if the Authorized Participant is acting as
agent for a Non-AP Arbitrageur, the Non-AP Arbitrageur) is responsible for the dollar cost of the difference between the value of LTC
calculated by the Trust Administrator for the applicable NAV per Share of the Trust and the price at which the Trust acquires the LTC
to the extent the price realized in buying the LTC is higher than the LTC price utilized in the NAV. To the extent the price realized
in buying the LTC is lower than the price utilized in the NAV, the Authorized Participant shall get to keep the dollar impact of any such
difference. With respect to a redemption order, between the Trust and the Authorized Participant, the Authorized Participant (or, if the
Authorized Participant is acting as agent for a Non-AP Arbitrageur, the Non-AP Arbitrageur) is responsible for the dollar cost of the
difference between the value of LTC calculated by the Trust Administrator for the applicable NAV per Share of the Trust and the price
at which the Trust sells LTC to raise the cash needed for the cash redemption order to the extent the price realized in selling the LTC
is lower than the LTC price utilized in the NAV. To the extent the price realized in selling the LTC is higher than the price utilized
in the NAV, the Authorized Participant shall get to keep the dollar impact of any such difference.
87
THE CASH CUSTODIAN
________ serves as the cash
custodian for the Trust. The Cash Custodian is responsible for safekeeping all non-LTC assets of the Trust.
The Trust will indemnify the
Cash Custodian from and against any and all claims, demands, losses, expenses and liabilities of any and every nature that the Cash Custodian
may sustain or incur or that may be asserted against the Cash Custodian by any person arising directly or indirectly (i) from the fact
that the relevant securities are registered in the name of any such nominee, (ii) from any action taken or omitted to be taken by the
Cash Custodian in good faith (a) at the request or direction of or in reliance on the advice of the Trust or Sponsor, or (b) upon Written
Instructions, or (iii) from the performance of its obligations under the Cash Custody Agreement.
Under the Cash Custody Agreement,
the Cash Custodian has agreed to provide its services for an initial term of three years with an automatic renewal of successive one-year
terms unless earlier terminated pursuant to the Cash Custody Agreement. The Custodian may terminate its services for certain material
breaches of the Cash Custody Agreement and terminations as may be required or occasioned by law. Either party may terminate the Cash Custody
Agreement upon 90 days' prior written notice to the other party.
CONFLICTS OF
INTEREST
General
The Sponsor has not established
formal procedures to resolve all potential conflicts of interest. Consequently, investors may be dependent on the good faith of the respective
parties subject to such conflicts to resolve them equitably. Although the Sponsor attempts to monitor these conflicts, it is extremely
difficult, if not impossible, for the Sponsor to ensure that these conflicts do not, in fact, result in adverse consequences for the Trust.
Prospective investors should
be aware that the Sponsor presently intends to assert that Shareholders have, by subscribing for Shares of the Trust, consented to the
following conflicts of interest in the event of any proceeding alleging that such conflicts violated any duty owed by the Sponsor to investors.
The Sponsor
The Sponsor and its affiliates
and their respective officers, directors, employees and other related parties engage in a broad spectrum of activities and may expand
the range of services that they provide over time. The Sponsor and its related parties will generally not be restricted in the scope of
their business or in the performance of any such services (whether now offered or undertaken in the future), even if such activities could
give rise to conflicts of interest, and whether or not such conflicts are described herein. In the ordinary course of their business activities,
the Sponsor and its related parties may engage in activities where the interests of the Sponsor and its related parties or the interests
of their clients conflict with the interests of the Trust. Certain employees of the Sponsor also have responsibilities relating to the
business of one or more related parties. These employees are not restricted in the amount of time that may be allocated to the business
activities of the Sponsor's related parties, and the allocation of such employees' time between the Sponsor and its related
parties may change over time.
The Sponsor and its related
parties are responsible for managing other accounts in addition to the services that they provide to the Trust, including other accounts
of the Sponsor or its affiliates. Other accounts may include, without limitation, private or SEC-registered funds, separately managed
accounts, offshore funds or accounts, or investments owned by the Sponsor or its affiliates. Management of other accounts in addition
to services provided to the Trust can present certain conflicts of interest. The other accounts might have similar or different investment
objectives or strategies as the Trust, or otherwise hold, purchase or sell investments that are eligible to be held, purchased or sold
by the Trust, or may take positions that are opposite in direction from those taken by the Trust.
The Sponsor may devote unequal
time and attention to the management of different accounts. As a result, the Sponsor may not be able to fulfill its obligations to the
Trust as might be the case if it were to devote substantially more attention to the management of a single account. The effects of this
potential conflict may be more pronounced where accounts overseen by the Sponsor have different investment strategies.
88
A conflict of interest arises
where the financial or other benefits available to the Sponsor or its related parties differ among the accounts that it manages. Where
the structure of the Sponsor's or its related party's fee differs among accounts (such as where certain accounts pay higher
management fees or a performance or incentive fee), the Sponsor might be motivated to help certain accounts over others. In addition,
the Sponsor might be motivated to favor accounts in which it has an interest and/or its related parties have interests. Similarly, the
desire to maintain or raise assets under management or to enhance the Sponsor's or its related parties' performance record
or to derive other rewards, financial or otherwise, could influence the Sponsor to give preferential treatment to those accounts that
could most significantly benefit the Sponsor.
The Trust's service
providers (including its Administrator, auditor and legal counsel) may provide services to other pooled investment vehicles with similar
investment strategies and objectives and, accordingly, may have conflicts of interest. The Trust's Sponsor and other service providers
and their principals, employees or affiliates may invest or trade in digital assets for their own accounts, which activities may conflict
or compete with the Trust.
The Sponsor or its affiliates
may purchase Shares from the Trust from time to time, and may hold a material position in the Trust. The Trust will not receive any of
the proceeds from the resale by the Sponsor or its affiliates of these Shares, and the sale of such Shares may impact the price at which
you may be able to sell your Shares. The Sponsor and its affiliates reserve the right, subject to compliance with applicable law, to sell
into the market or redeem through an Authorized Participant at any time some or all of the Shares of the Trust acquired for their own
accounts. The Sponsor or its affiliates face conflicting interests in determining whether, when and in what amount to sell or redeem Shares
of the Trust. The Sponsor and its affiliates are under no obligation to consider the effect of sales or redemptions on the Trust and other
Shareholders in deciding whether to sell or redeem their Shares.
The Sponsor is responsible
for selecting and engaging the Trust's service providers, including the Benchmark Administrator. To the extent that the Sponsor
has other commercial arrangements with the service providers, the Sponsor may face conflicts of interest with respect to its oversight
and supervision of the service providers. Further, to the extent that the Sponsor has investments in LTC and/or in Shares, and due to
the fact that the Sponsor's fee is payable based on the value of the Shares, the Sponsor may face potential conflicts of interest
with respect to the Benchmark Administrator's valuation of Shares.
________ is a Custodian of
the Trust and an affiliate of the Sponsor, which may create conflicts of interest as a result of such relationship. ________ does not
share officers or personnel with the Sponsor. Shareholders should be aware that ________ will not take the interests of the Shareholders
into consideration when carrying out its duties under the ________ Custody Agreement. The interests of ________ and the Shareholders may
not be aligned. ________ will have no responsibility or liability to the Shareholders or the Trust except as provided in the ________
Custody Agreement.
Proprietary Trading/Other Clients
Because the officers of the
Sponsor may trade LTC for their own personal trading accounts (subject to certain internal trading policies and procedures) at the same
time that they are managing the account of the Trust, prospective investors should be aware that the activities of the officers of the
Sponsor, subject to their fiduciary duties, may, from time-to-time, result in taking positions in their personal trading accounts which
are opposite of the positions taken for the Trust. Records of the Sponsor's officers' personal trading accounts will not be
available for inspection by Shareholders.
DESCRIPTION
OF THE SHARES
General
The Trust is authorized under
the Trust Agreement to create and issue an unlimited number of Shares. Shares will be issued only in Baskets (a Basket equals a block
of 5,000 Shares) and only upon the order of an Authorized Participant. The Shares represent units of fractional undivided beneficial interest
in and ownership of the Trust and have no par value. Any creation and issuance of Shares above the amount registered on the registration
statement of which this prospectus is a part will require the registration of such additional Shares.
Description of Limited Rights
The Shares do not represent
a traditional investment and should not be viewed as similar to "shares" of a corporation operating a business enterprise
with management and a board of directors. A Shareholder will not have the statutory rights normally associated with the ownership of shares
of a corporation. Each Share is transferable, is fully paid and non-assessable, and entitles the holder to vote on the limited matters
upon which Shareholders may vote under the Trust Agreement. For example, Shareholders do not have the right to elect directors and will
not receive dividends. The Shares do not entitle their holders to any conversion or pre-emptive rights or, except as provided below, any
redemption rights or rights to distributions.
89
Voting and Approvals
The Shareholders of the Trust
take no part in the management or control, and have no voice in, the Trust's operations or business. Shareholders have very limited
voting rights as set forth in the Trust Agreement. However, certain actions, such as amendments or modifications that appoint a new sponsor
(upon the withdrawal, removal or the adjudication or admission of bankruptcy or insolvency of the Sponsor) require the consent of Shareholders
owning a majority (over 50%) of the outstanding Shares of the Trust (not including Shares held by the Sponsor or its Affiliates).
The Sponsor will generally
have the right to amend the Trust Agreement as it applies to the Trust provided that the Shareholders have the right to vote only if expressly
required under Delaware or federal law or rules or regulations of the Exchange, or if submitted to the Shareholders by the Sponsor at
its sole discretion. No amendment affecting the Trustee will be binding upon or effective against the Trustee unless consented to by the
Trustee in the form of an instruction letter.
Distributions
If the Trust is terminated
and liquidated, the Sponsor will distribute to the Shareholders any amounts of the cash proceeds of the liquidation remaining after the
satisfaction of all outstanding liabilities of the Trust and the establishment of reserves for applicable taxes, other governmental charges
and contingent or future liabilities as the Sponsor shall determine. Accordingly, Shareholders of record at the time of a liquidation
may receive either LTC or cash. See "Description of the Trust Agreement—The Trustee—Termination of the Trust."
Shareholders of record on the record date fixed by the Transfer Agent for a distribution will be entitled to receive their
pro rata
portion of any distribution.
Redemption of the Shares
The Shares may be redeemed
only by or through an Authorized Participant and only in whole Baskets. See "Description of Creation and Redemption of Shares."
Book-Entry Form
Individual certificates will
not be issued for the Shares. Instead, one or more global certificates have been deposited by the Transfer Agent with DTC and registered
in the name of Cede & Co., as nominee for DTC. The global certificates will evidence all of the Shares outstanding at any time. Under
the Trust Agreement, Shareholders are limited to (1) DTC Participants such as banks, brokers, dealers and trust companies, (2) those who
maintain, either directly or indirectly, a custodial relationship with a DTC Participant ("Indirect Participants"), and (3)
those banks, brokers, dealers, trust companies and others who hold interests in the Shares through DTC Participants or Indirect Participants.
The Shares are transferable only through the book-entry system of DTC. Shareholders who are not DTC Participants may transfer their Shares
through DTC by instructing the DTC Participant holding their Shares (or by instructing the Indirect Participant or other entity through
which their Shares are held) to transfer the Shares. Transfers will be made in accordance with standard securities industry practice.
Share Splits
If the Sponsor believes that
the per-Share price in the public market for Shares has risen or fallen outside a desirable trading price range, the Sponsor may direct
the Transfer Agent to declare a split or reverse split in the number of Shares outstanding and to make a corresponding change in the number
of Shares constituting a Basket.
90
CUSTODY OF
THE TRUST'S LTC
LTC Custody Generally
The Trust has entered into
the Custody Agreements, pursuant to which the Custodians will custody all of the Trust's LTC, other than that which may be maintained
in a trading account (the "Trading Account") held with the Prime Broker, which is an affiliate of the ________ Custodian,
in segregated accounts from time to time (the "Vault Accounts"). The Custodians will keep all of the private keys associated
with the Trust's LTC held by the Custodians in the Vault Accounts in "cold storage," which refers to a safeguarding
method by which the private keys corresponding to the Trust's LTC are generated and stored in an offline manner using computers
or devices that are not connected to the Internet, which is intended to make them more resistant to hacking. By contrast, in hot storage,
the private keys are held online, where they are more accessible, leading to more efficient transfers, though they are potentially more
vulnerable to being hacked. While the Custodians will generally keep a substantial portion of the Trust's LTC in cold storage on
an ongoing basis, from time to time, portions of the Trust's LTC will be held outside of cold storage temporarily in the Trading
Account maintained by the Prime Broker as part of trade facilitation in connection with creations and redemptions of Baskets or to sell
LTC including to pay Trust expenses. The Trust's LTC held in the Vault Accounts by the Custodians are held in segregated wallets
and therefore are not commingled with the Custodians' or other customer assets.
A portion of the Trust's
LTC holdings and cash holdings from time to time may be held with the Prime Broker in the Trading Account in connection with creations
and redemptions of Baskets utilizing the Prime Broker as LTC Trading Counterparty and any sales of LTC to pay the Sponsor's Fee
and Trust expenses not assumed by the Sponsor. Within the Trust's Trading Account, the Prime Broker Agreement provides that the
Trust does not have an identifiable claim to any particular LTC (and cash). Instead, the Trust's Trading Account represents an entitlement
to a
pro
rata share of the LTC (and cash) the Prime Broker holds on behalf of customers who hold similar entitlements against the
Prime Broker. In this way, the Trust's Trading Account represents an omnibus claim on the Prime Broker's LTC (and cash) held
on behalf of the Prime Broker's customers. The Prime Broker holds the LTC associated with customer entitlements across a combination
of omnibus cold wallets, omnibus "hot wallets" (meaning wallets whose private keys are generated and stored online, in Internet-connected
computers or devices) or in omnibus accounts in the Prime Broker's name on a trading venue (including third-party venues and the
Prime Broker's own execution venue) where the Prime Broker executes orders to buy and sell LTC on behalf of its clients. Within
such omnibus hot and cold wallets and accounts, the Prime Broker has represented to the Sponsor that it keeps the majority of assets in
cold wallets, to promote security, while the balance of assets are kept in hot wallets to facilitate rapid withdrawals. However, the Sponsor
has no control over, and for security reasons the Prime Broker does not disclose to the Sponsor, the percentage of LTC that the Prime
Broker holds for customers holding similar entitlements as the Trust which are kept in omnibus cold wallets, as compared to omnibus hot
wallets or omnibus accounts in the Prime Broker's name on a trading venue. The Prime Broker has represented to the Sponsor that
the percentage of assets maintained in cold versus hot storage is determined by ongoing risk analysis and market dynamics, in which the
Prime Broker attempts to balance anticipated liquidity needs for its customers as a class against the anticipated greater security of
cold storage. Generally, the Trust will only hold LTC in the Trading Account to the extent the Sponsor reasonably expects is necessary
in connection with the redemption of Shares by Authorized Participants or necessary to pay the Trust's expenses.
Other than the LTC held with
the Prime Broker in the Trading Account, the Sponsor will allocate the Trust's LTC between Vault Accounts at the ________ Custodian,
________ and ________. In determining the amount and percentage of the Trust's LTC to allocate to each Vault Account, the Sponsor
will consider (i) the concentration of the Trust's LTC at each Custodian, (ii) the Sponsor's assessment of the safety and
security policies and procedures of each Custodian, (iii) the insurance policies of each Custodian, (iv) the fees and expenses associated
with the storage of the Trust's LTC at each Custodian, (v) the fees and expenses associated with the transfer to or from the Vault
Account at each Custodian, and (vi) any other factor the Sponsor deems relevant in making the allocation determination. The Sponsor does
not intend to disclose the amount or percentage of the Trust's LTC held at the ________ Custodian, ________ or ________, and the
Sponsor may change the allocation between the Custodians at any time and without notice to Shareholders. The fees and expenses associated
with the transfer of LTC between the Vault Accounts at each Custodian will be borne by the Sponsor, not the Trust or the Shareholders.
Any transfer of LTC between the Vault Accounts at each Custodian will occur "on-chain" over the Litecoin Blockchain. On-chain
transactions are subject to all of the risks of the Litecoin Blockchain, including the risk that transactions will be made erroneously
and are generally irreversible.
91
Custody of LTC typically involves
the generation, storage and utilization of private keys. These private keys are used to effect transfer transactions (i.e., transfers
of LTC from an address associated with the private key to another address). Cold storage is a safeguarding method with multiple layers
of protections and protocols, by which the private key(s) corresponding to the Trust's LTC is (are) generated and stored in an offline
manner. Private keys are generated in offline computers that are not connected to the Internet so that they are resistant to being hacked.
Cold storage of private keys may involve keeping such keys on a non-networked computer or electronic device or storing the private keys
on a storage device or printed medium and deleting the keys from all computers. Such private keys are stored in cold storage facilities
within the United States and Europe, exact locations of which are not disclosed for security reasons. A limited number of employees at
the Custodians are involved in private key management operations, and the Custodians have represented that no single individual has access
to full private keys. While the Custodians will generally keep a substantial portion of the Trust's LTC in cold storage on an ongoing
basis, from time to time, portions of the Trust's LTC will be held in the Trading Account outside of cold storage temporarily as
part of trade facilitation in connection with creations and redemptions of Baskets or to sell LTC to pay Trust expenses. The determination
of what portion of the Trust's LTC to store in the Trading Account and for what duration will be made by the Sponsor at its sole
discretion. Please see "Cybersecurity Risks Related to LTC," "Risks Related to the Markets and Service Ecosystem for
LTC," and "Risks Related to the Trust and the Shares" for a discussion of custody risks.
Even though LTC is only moved
into the Trading Account in connection with and to the extent of purchases and sales of LTC by the Trust utilizing the Prime Broker as
LTC Trading Counterparty and such LTC is swept from the Trust's Trading Account to the Trust's Vault Account at the ________
Custodian each trading day pursuant to a regular end-of-day sweep process, there are no policies that would limit the amount of LTC that
can be held temporarily in the Trading Account maintained by the Prime Broker. This could create greater risk of loss of the Trust's
LTC, which could cause Shareholders to suffer losses. Under normal market conditions, the Sponsor's policy is to keep at least 95%
of the Trust's LTC in the Vault Accounts and no more than 5% of the Trust's LTC in the Trading Account to cover the reasonably
anticipated short-term transaction needs of the Trust.
The Custodians may receive
deposits of LTC but may not send LTC without the use of the corresponding private keys. In order to send LTC when the private keys are
kept in cold storage, unsigned transactions must be physically transferred to the offline cold storage facility and signed using a software/hardware
utility with the corresponding offline keys. At that point, a Custodian can upload the fully signed transaction to an online network and
transfer the LTC. Because the Custodians may need to retrieve private keys from offline storage prior to initiating transactions, the
initiation or crediting of withdrawals or other transactions may be delayed.
The Custodians carefully consider
the design of the physical, operational and cryptographic systems for secure storage of the Trust's private keys in an effort to
lower the risk of loss or theft. No such system is perfectly secure and loss or theft due to operational or other failure is always possible.
See "Risk Factors – Conflicts of Interest –
The Custodians' ability to adopt technology in response to changing
security needs or trends poses a challenge to the safekeeping of the Trust's LTC.
"
The Trust may engage third-party
custodians or vendors besides the Custodians and Cash Custodian to provide custody and security services for all or a portion of its LTC
and/or cash, and the Sponsor will pay the custody fees and any other expenses associated with any such third-party custodian or vendor.
The Sponsor is responsible for overseeing the Custodians and the Trust's other service providers. The Sponsor may, in its sole discretion,
add or terminate Custodians at any time. The Sponsor may, in its sole discretion, change the custodians for the Trust's LTC holdings,
but it will have no obligation whatsoever to do so or to seek any particular terms for the Trust from other such custodians. However,
the Sponsor will only enter into LTC custody arrangements with custodians that meet the Sponsor's criteria, including an agreement
to maintain Trust assets in a segregated account, to maintain insurance and to store the Trust's private keys in cold storage or
in such other manner as the Sponsor determines provides reasonable protection for the Trust's assets from loss or theft. The Trust
may hold cash and cash equivalents on a temporary basis to pay expenses or facilitate creation and redemption transactions. The Trust
has entered into a cash custody agreement with Cash Custodian under which Cash Custodian acts as custodian of the Trust's cash.
Custody with the ________ Custodian
Under the terms of the ________
Custody Agreement, the Sponsor maintains sole discretion in allocating LTC among the Vault Accounts and the Trading Account. LTC custodied
by the Custodians in the Vault Accounts is not commingled with assets of Custodians or their respective affiliates or with assets of other
customers of Custodian. The ________ Custodian has also agreed in the ________ Custody Agreement that it will not, directly or indirectly,
lend, pledge, hypothecate or rehypothecate any of the Trust's LTC, and that the Trust's LTC assets are not treated as general
assets of the ________ Custodian but are instead considered custodial assets that remain the Trust's property. Additionally, the
________ Custodian has agreed to provide the Trust or its authorized independent public accountant with confirmation of or access to information
sufficient to confirm the LTC held by the ________ Custodian for the Trust and that the Trust's LTC is held in a separate, segregated
account under the Trust's name.
The ________ Custodian's
internal audit team performs periodic internal audits over custody operations, and the ________ Custodian has represented that Systems
and Organizational Control ("SOC") attestations covering private key management controls are also performed on the ________
Custodian by an external provider.
92
The ________ Custodian's
parent, ________ ("________") maintains a commercial crime insurance policy in an amount up to $320 million, which is intended
to cover the loss of client assets held by ________ and all of its subsidiaries, including the ________ Custodian and the Prime Broker
(collectively, ________ and its subsidiaries are referred to as the "________ Insureds"), including from employee collusion
or fraud, physical loss including theft, damage of key material, security breach or hack, and fraudulent transfer. The insurance maintained
by the ________ Insureds is shared among all of ________'s customers, is not specific to the Trust or to customers holding LTC with
the ________ Custodian or the Prime Broker and may not be available or sufficient to protect the Trust from all possible losses or sources
of losses.
In the event of a fork of
the Litecoin Blockchain, the ________ Custodian and the Prime Broker may, in their sole discretion, determine whether or not to support
(or cease supporting) either branch of the Litecoin Blockchain entirely, provided that they shall use commercially reasonable efforts
to avoid ceasing to support both branches of such forked protocol and will support, at a minimum, the original digital asset. Provided
that the ________ Custodian and the Prime Broker shall make commercially reasonable efforts to assist the Trust and take the necessary
steps to enable the Trust to retrieve and/or obtain any assets related to a fork, airdrop or similar event, neither the ________ Custodian
nor the Prime Broker shall have any liability, obligation or responsibility whatsoever arising out of or relating to the operation of
an unsupported branch of the Litecoin Blockchain in the event of a fork. Neither the ________ Custodian nor the Prime Broker have any
responsibility to support airdrops. The Trust Agreement provides, and the Sponsor has communicated to the Custodians, that the Trust disclaims
all rights to Incidental Rights and IR Virtual Currencies.
Under the ________ Custody
Agreement, the ________ Custodian's liability is subject to the following limitations, among others: (i) other than with respect
to claims and losses arising from fraud or willful misconduct, among others, the ________ Custodian's aggregate liability under
the ________ Custody Agreement shall not exceed the greater of (A) the aggregate fees paid by the Trust to the ________ Custodian in the
12 months prior to the event giving rise to the ________ Custodian's liability, and (B) the value of the affected LTC giving rise
to the ________ Custodian's liability; (ii) the ________ Custodian's aggregate liability in respect of each cold storage address
shall not exceed $100 million; and (iii) in respect of any incidental, indirect, special, punitive, consequential or similar losses, the
________ Custodian is not liable, even if the ________ Custodian has been advised of or knew or should have known of the possibility thereof.
The ________ Custodian is not liable for delays, suspension of operations, failure in performance, or interruption of service to the extent
it is directly due to a cause or condition beyond the reasonable control of the ________ Custodian.
Also pursuant to the ________
Custody Agreement, the Prime Broker, an affiliate of the Custodian, may provide prime broker services, including LTC trade execution,
from time to time as requested by the Sponsor. The Trust may engage in purchases or sales of LTC by placing orders with the Prime Broker.
Custody with ________
________ is also authorized
to safeguard the Trust's LTC holdings allocated to it by the Sponsor. ________ maintains one or more custody accounts on its books,
pursuant to the terms of the ________ Custody Agreement, for the receipt, safekeeping, and maintenance of LTC.
As a regulated custodian,
________ is subject to a detailed statutory and regulatory framework, including holding customer assets in segregated client accounts
on behalf of customers. 100% of Trust assets and private keys are safekept by ________ and will be held in cold storage in segregated
accounts and are never commingled with ________ or other client assets. ________ applies industry standards, such as CryptoCurrency Security
Standard (CCSS) and SOC1 and SOC2, while also working with the most trusted brands in the industry and offering clients comprehensive
insurance solutions.
The ________ ecosystem and
architecture for private key management include the ________ Platform, hardware security modules ("HSMs") and modular services.
The ________ cold custody solution is built on ________'s security to manage keys on behalf of customers. ________ only signs transactions
that have been authorized by the Sponsor and follow the policies set by the account administrators.
The primary keys and backup
keys are created offline using an Offline Vault Console ("OVC") on air gapped laptops during a secure ceremony to create hardened
cryptographic seeds that power the ________ solution. This is to ensure only machines which have no access to the internet and are pristine
are able to see private key material.
Undisclosed personnel at ________
hold the sharded keys. When they are reconstituted, they are able to sign a transaction which moves funds in the public blockchain. To
mitigate collusion, the individuals who have the sharded keys are different from those who have access to the vaults where the signings
happen.
93
The private key is reconstituted
in the OVC, but only in internal memory. At no point is it displayed or shown to any user. After signing is done, the key is no longer
available in memory. The OVC is run in a read-only disk, so once the laptop is powered off, there is no non-volatile storage of any kind
to write back to disk. The OVC operates using a RAM disk, where it simulates a real hard disk, but it is completely ephemeral and is wiped
as soon as the machine is power cycled or rebooted, thus wiping the reconstituted private key and preventing it from being copied or compromised.
________ is a South Dakota
trust company and the private keys are strategically distributed across various geographic locations within the United States. In order
to enhance security measures, ________ refrains from disclosing the exact locations of these keys.
At time of wallet creation,
________ creates a unique key pair within its HSM in order to give each client a unique wallet on-chain. These online keys are wrapped
by the ________ HSM and stored within ________'s data vault for the ________ Platform keys used to sign transactions.
As all custody wallets are
segregated, the existence of LTC held by the Trust can be verified on-chain by the Sponsor or any other authorized party.
________ cold wallets are
supported by a $250 million insurance policy issued by Lloyd's of London. The specifics of the policy include Cyber Insurance, E&O,
general specie. Any copying and theft of private keys, insider theft or dishonest acts by ________ employees or executives, and loss of
keys directly related to ________'s custody of keys would be covered by this amount at minimum. This insurance policy is shared
among all of ________'s clients and is not specific to the Trust or to customers holding LTC and may not be available or sufficient
to protect the Trust from all possible losses or sources of losses. The Sponsor may purchase additional insurance coverage through ________'s
underwriter, though the Sponsor has not purchased such additional insurance cover as of the date of this Prospectus. ________ is not FDIC-insured.
________ has established a business continuity plan that will support its ability to conduct business in the event of a significant business
disruption. This plan is reviewed and updated annually, and can be updated more frequently, if deemed necessary, by ________ in its sole
discretion. Should ________ be impacted by a significant business disruption, ________ aims to minimize business interruption as quickly
and efficiently as possible.
________'s fork policy
determines that in the event of an upcoming modification to the Litecoin Blockchain that could result in a digital asset network fork
or airdrop, ________ will use best commercial efforts to provide the value of the forked digital asset. In addition to ________'s
fork policy, ________ adheres to the fork policy outlined by Compass Financial Technologies. ________ may not support airdrops, side chains,
or other derivative, enhanced, or forked protocols, tokens, or coins which supplement or interact with an asset supported by ________
and assumes absolutely no responsibility in respect to new protocols. The Trust Agreement provides, and the Sponsor has communicated to
the Custodians, that the Trust disclaims all rights to Incidental Rights and IR Virtual Currencies.
The ________ Custody Agreement
commenced on the effective date, as detailed in the agreement, and will continue for one (1) year, unless earlier terminated
in accordance with the terms of the ________ Custody Agreement. After the initial term, the ________ Custody Agreement will automatically
renew for successive renewal terms, as established on the agreement, unless either party notifies the other of its intention not to renew
with prior notice. ________ may terminate the ________ Custody Agreement for any reason upon providing at least thirty (30) days'
written notice to the Trust and to the Sponsor, or immediately if ________ perceives a risk of legal or regulatory non-compliance associated
with the Trust's custodial account activity, among others. The Sponsor may terminate the ________ Custody Agreement at any time
upon providing at least thirty (30) days' written notice to ________, paying outstanding amounts and an early termination fee.
Custody with ________
________ is also authorized
to safeguard the Trust's LTC holdings allocated to it by the Sponsor. ________ maintains one or more custody accounts on its books,
pursuant to the terms of the ________ Custody Agreement, for the receipt, safekeeping, and maintenance of LTC.
LTC custodied by ________
will be segregated at the wallet level from the assets of ________ or their respective affiliates or with assets of any other customers
of ________. ________ has also agreed in the ________ Custody Agreement that it shall not have the right to use, lend, pledge or hypothecate
any of the Trust's LTC, or create or, to the extent reasonably possible, permit others to create, any encumbrance in the Trust's
LTC. ________ shall separately identify all Trust LTC assets on its books and records as belonging to the Trust (and, accordingly, not
to ________ (in its own or any other capacity), any other client of ________ or any third party). Additionally, ________ has agreed to
provide the Trust and, if the Trust so directs, the Trust's auditors with reports relating to account balances, value, transfers
and other information and to provide the Trust and their respective auditors such access as they may reasonably require to perform their
duties. Any such access shall be subject to execution of a confidentiality agreement and agreement to ________'s security procedures.
94
________'s fork policy
provides that any new digital asset which results from a hard fork in the Litecoin Blockchain during the term of the ________ Custody
Agreement shall, on the Trust's request, be assessed by ________ for its compatibility with the Platform ("Platform"
is defined in the ________ Custody Agreement as the secure platform interface and technical solution which enables the Trust to access
and utilize the vault services provided under the agreement). ________ will notify the Trust, following such assessment, whether the new
digital asset in question is compatible with the Platform and is compliant with any other internal requirements of ________. In which
case, such new digital asset shall, from its inception at the relevant fork be deemed: (i) included within the definition of "Compatible
Asset" in the ________ Custody Agreement; and (2) as a distinct form of digital asset to LTC for all purposes (including, for the
avoidance of doubt, the further application of ________'s fork policy). All holdings of the new digital asset in the Trust's
account(s) will be transferred into a new account for the Trust.
________ does not automatically
credit any digital asset the Trust may obtain or otherwise be able to obtain through an airdrop. It is the Trust's responsibility
under the ________ Custody Agreement to monitor any airdrops, and to notify ________ of such airdrops. ________ will, following such notification,
assess any such airdrop, on a case-by-case basis, and may decide, in its sole discretion, whether to support such an airdrop, or provide
any services in connection with the digital assets obtained or obtainable through that airdrop.
________ maintains comprehensive
insurance coverage in relation to digital assets under custody, that is reviewed and updated on an ongoing basis. This program encompasses
crime and specie policies and protects against risks related to third-party computer and fund transfer fraud, employee theft, collusion,
and physical device or backup theft, loss or damage. The policy is designed to protect all clients and their on-chain segregated custody
wallets, the $50 million (USD) limit is aggregated and pooled and not dedicated specifically to any individual client.
The ________ Custody Agreement
commenced on the effective date, as detailed in the agreement, and will continue for thirty-six (36) months, unless earlier terminated
in accordance with the terms of the ________ Custody Agreement. After the initial term, the ________ Custody Agreement will automatically
renew for successive twelve (12) month periods, as established on the agreement, unless either party notifies the other of its intention
to terminate in accordance with the terms of the agreement. ________ may terminate the ________ Custody Agreement for any reason upon
providing at least three (3) months' written notice to the Trust, or immediately upon written notice to the Trust if: (i) ________
determines, in its sole discretion, that continued provision of the custody services would result in violation of applicable law or regulation
relating to either ________ or the Trust and the parties are unable to amend the relevant provisions of the ________ Custody Agreement
in accordance with the terms of the agreement, (ii) a force majeure event, as defined in the ________ Custody Agreement, continues for
at least forty-five (45) days, or (iii) the Trust does not utilize the custody services set forth in the ________ Custody Agreement for
a period of twelve (12) months from the effective date of the agreement.
DESCRIPTION
OF CREATION AND REDEMPTION OF SHARES
The Trust creates and redeems
Shares from time to time, but only in one or more Baskets. Baskets are only made in exchange for delivery to the Trust or the distribution
by the Trust of the amount of cash represented by the Baskets being created or redeemed (the "Basket Deposit"). The amount
of cash required in a Basket Deposit (the "Basket Cash Deposit") is based on the quantity or value of the quantity, as applicable,
of LTC and cash attributable to each Share of the Trust (net of accrued but unpaid Sponsor's Fees and any accrued but unpaid Extraordinary
Expenses) being created or redeemed determined as of 4:00 p.m. ET on the day the order to create or redeem Baskets is properly received.
Baskets will only made in
exchange for delivery to the Trust or the distribution by the Trust of the amount of cash represented by the Shares being created or redeemed,
the amount of which is based on the value of the LTC attributable to each Share of the Trust (net of accrued but unpaid Sponsor's
Fees and any accrued but unpaid expenses or liabilities) being created or redeemed determined as of 4:00 p.m. ET on the day the order
to create or redeem Baskets is properly received. The Trust will engage in LTC transactions for converting cash into LTC (in association
with purchase orders) and LTC into cash (in association with redemption orders). The Trust will conduct its LTC purchase and sale transactions
as described above under the heading "Activities of the Trust – Purchases and Sales of LTC."
95
Authorized Participants are
the only persons that may place orders to create and redeem Baskets. Authorized Participants must be (1) registered broker-dealers or
other securities market participants, such as banks or other financial institutions, that are not required to register as broker-dealers
to engage in securities transactions as described below, and (2) DTC Participants. To become an Authorized Participant, a person must
enter into an Authorized Participant Agreement. The Authorized Participant Agreement provides the procedures for the creation and redemption
of Shares and for the delivery of the cash required for such creation and redemptions. The Authorized Participant Agreement and the related
procedures attached thereto may be amended by the Trust and the Sponsor, without the consent of any Shareholder or Authorized Participant.
Authorized Participants pay the Transfer Agent a fee for each order they place to create or redeem one or more Baskets (the "Transfer
Agent Fee"). In addition, an Authorized Participant is responsible for any operational processing and brokerage costs, transfer
fees, financing fees, network fees and stamp taxes incurred in connection with the satisfaction of any creation or redemption orders (the
"Execution Charges," and collectively with the Transfer Agent Fee, the "Transaction Fees"). The Transaction Fees
may be reduced, increased or otherwise changed by the Sponsor. Authorized Participants (or their designees) who make deposits of cash
with the Trust in exchange for Shares receive no fees, commissions or other form of compensation or inducement of any kind from either
the Trust or the Sponsor, and no such person will have any obligation or responsibility to the Sponsor or the Trust to effect any sale
or resale of Shares. The Authorized Participants will deliver only cash to create Shares and will receive only cash when redeeming Shares.
Further, Authorized Participants will not directly or indirectly purchase, hold, deliver, or receive LTC as part of the creation or redemption
process or otherwise direct the Trust or a third party with respect to purchasing, holding, delivering, or receiving LTC as part of the
creation or redemption process.
Certain Authorized Participants
are expected to be capable of participating directly in the spot LTC markets. Some Authorized Participants or their affiliates may from
time to time buy or sell LTC and may profit in these instances. To the extent that the activities of Authorized Participants have a meaningful
effect on the LTC market, it could affect the price of LTC and impact the ability of the Authorized Participants to effectively arbitrage
the difference between the price at which the shares trade and the net asset value of the Trust. While the Sponsor currently expects that
Authorized Participants' direct activities in the LTC or securities markets in connection with the creation and redemption activities
of the Trust will not significantly affect the price of LTC or the Shares, the impact of the activities of the Trust and its Authorized
Participants on LTC or securities markets is unknown and beyond the control of the Sponsor.
Each Authorized Participant
will be required to be registered as a broker-dealer under the Exchange Act and a member in good standing with FINRA or exempt from being
or otherwise not required to be licensed as a broker-dealer or a member of FINRA, and will be qualified to act as a broker or dealer in
the states or other jurisdictions where the nature of its business so requires. Certain Authorized Participants may also be regulated
under federal and state banking laws and regulations. Each Authorized Participant has its own set of rules and procedures, internal controls
and information barriers as it determines is appropriate in light of its own regulatory regime.
The following description
of the procedures for the creation and redemption of Baskets is only a summary and a Shareholder should refer to the relevant provisions
of the Trust Agreement and the form of Authorized Participant Agreement for more detail. The Trust Agreement and the form of Authorized
Participant Agreement are filed as exhibits to the registration statement of which this prospectus is a part.
Authorized Participants will
place orders through the Transfer Agent. The Transfer Agent will coordinate with the Trust's Cash Custodian in order to facilitate
settlement of the Shares and cash as described in more detail in the "—Creation Procedures" and "—Redemption
Procedures" sections below.
Creation Procedures
On any business day, an Authorized
Participant may place an order with the Transfer Agent to create one or more Baskets. Purchase orders must be placed by 1:00 p.m. ET or
the close of regular trading on the Exchange, whichever is earlier. The day on which a valid order is received by the Transfer Agent is
considered the "Purchase Order Date."
The manner by which creations
are made is dictated by the terms of the Authorized Participant Agreement. Creation orders are denominated and settled in cash ("Cash
Creation Order"). By placing a Cash Creation Order, an Authorized Participant agrees to facilitate the deposit of cash with the
Cash Custodian. If an Authorized Participant fails to consummate the foregoing, the order will be cancelled or delayed until the full
cash deposit has been received. An Authorized Participant may not withdraw a creation order without the prior consent of the Sponsor at
its discretion.
Following an Authorized Participant's
Cash Creation Order, the Trust's account with the Cash Custodian (the "Cash Account") must be credited with the required
cash by the end of the Purchase Order Date. Upon receipt of the cash deposit amount in the Cash Account, the Cash Custodian will notify
the Transfer Agent, the Authorized Participant and the Sponsor that the cash has been deposited. The Transfer Agent will then direct DTC
to credit the number of Shares created to the Authorized Participant's DTC account.
To the extent not held to
facilitate redemption orders or pay the Trust's expenses, the Sponsor will use cash proceeds received in connection with Cash Creation
Orders to purchase LTC and deposit it in the Vault Accounts with the Custodians. LTC held in the Vault Accounts is the property of the
Trust and is only transferred outside the Vault Accounts or sold in connection with creation and redemption transactions or to pay the
Trust's expenses and liabilities. The Trust's LTC will not leased, loaned or used as collateral for any loan, margin, rehypothecation
or similar activities. Expenses related to the acquisition of LTC in connection with a creation order and transfer of acquired LTC to
the Vault Accounts will not be the responsibility of the Trust.
96
Determination of Required
Deposits
The quantity of cash required
to create each Basket Deposit changes from day to day. On each day that the Exchange is open for regular trading, the Administrator adjusts
the quantity of cash constituting the Basket Deposit as appropriate to reflect the value of the Trust's LTC and cash less accrued
expenses. The computation is made by the Administrator as promptly as practicable after 4:00 p.m. ET or at a later time set forth in the
Authorized Participant Agreement or otherwise provided to all Authorized Participants on the date such order is placed in order for the
creation of Baskets to be effected based on the NAV of Shares as next determined on such date after receipt of the order in proper form.
To the extent there is a difference
between the price actually paid by the Trust to acquire a Basket worth of LTC in the creation process compared to the cash value of the
Basket (i.e., if there is a difference between the amount paid by the Trust to purchase the requisite amount of LTC and the valuation
of LTC as part of the Trust's NAV calculation), that difference will also be charged to the creating Authorized Participant.
The Basket Cash Deposit is
an amount of cash that is in the same proportion to the total assets of the Trust, net of accrued expenses and other liabilities, on the
Purchase Order Date, as the number of Shares constituting a Basket is in proportion to the total number of Shares outstanding on the Purchase
Order Date, plus the amount of any Transaction Fees. The Authorized Participant is responsible for all expenses related to the acquisition
of LTC in connection with a creation order. For a discussion of how the Trust determines the value of LTC, see "Calculation of NAV"
above. The Basket Cash Deposit so determined is communicated via electronic mail message to all Authorized Participants.
Delivery of Required Deposits
An Authorized Participant
who places a purchase order must follow the procedures outlined in the "Creation Procedures" section of this prospectus. Upon
receipt of the deposit amount by the Cash Custodian, as applicable, the Transfer Agent will direct DTC to credit the number of Shares
ordered to the Authorized Participant's DTC account on the following business day or such later time as may be agreed upon by the
Authorized Participant and the Sponsor, following the Purchase Order Date. In circumstances where purchase orders are due before 4:00
p.m. ET, Authorized Participants will not know the total Basket Deposit at the time they submit a purchase order for the Basket. The Trust's
NAV and the price of a Basket Deposit could rise or fall substantially between the time a purchase order is submitted and the time the
amount of the purchase price in respect thereof is determined, and the risk of such price movements will be borne solely by the Authorized
Participant.
Rejection of Purchase Orders
The Sponsor or its designee
has the absolute right, but does not have any obligation, to reject any purchase order or Basket Deposit if the Sponsor determines that:
●
the purchase order or Basket Deposit is not in proper form as described in the Authorized Participant Agreement;
●
the acceptance of the purchase order or Basket Deposit would not be in the best interest of the Trust;
●
the acceptance of the purchase order or the Basket Deposit would have adverse tax consequences for the Trust or its Shareholders;
●
the acceptance of the Basket Deposit presents a security or regulatory risk to the Trust, the Sponsor, the Transfer Agent, the Prime Broker, the Custodians or the Cash Custodian;
●
the acceptance or receipt of the purchase order or Basket Deposit would, in the opinion of counsel to the Sponsor, be unlawful; or
●
circumstances outside the control of the Trust, the Sponsor, the Prime Broker, the Custodians or the Cash Custodian make it impractical or not feasible to process Baskets.
None of the Sponsor, the Transfer
Agent, the Prime Broker, the Custodians or the Cash Custodian will be liable for the rejection of any purchase order or Basket Deposit.
97
Redemption Procedures
The procedures by which an
Authorized Participant can redeem one or more Baskets mirror the procedures for the creation of Baskets. On any business day, an Authorized
Participant may place an order with the Transfer Agent to redeem one or more Baskets. Redemption orders must be placed by the close of
Regular Trading Hours on the Exchange or an earlier time as determined and communicated by the Sponsor and its agent. A redemption order
will be effective on the date it is received by the Transfer Agent ("Redemption Order Date").
In the case of a redemption
order for cash ("Cash Redemption Order"), the redemption distribution from the Trust consists of a transfer to the Authorized
Participant of an amount of cash that is in the same proportion to the total assets of the Trust, net of accrued expenses and other liabilities,
on the Redemption Order Date, as the number of Shares to be redeemed under the purchase order is in proportion to the total number of
Shares outstanding on the Redemption Order Date. With respect to either a LTC Redemption Order or Cash Redemption Order, the redemption
distribution due from the Trust will be delivered once the Transfer Agent notifies the Cash Custodian, the Marketing Agent and the Sponsor
that the Authorized Participant has delivered the Shares represented by the Baskets to be redeemed to the Transfer Agent's DTC account.
If the Transfer Agent's DTC account has not been credited with all of the Shares of the Baskets to be redeemed, the redemption distribution
will be cancelled or delayed until such time as the Transfer Agent confirms receipt of all such Shares.
By placing a redemption order,
an Authorized Participant agrees to deliver the Baskets to be redeemed through DTC's book-entry system to the Trust by the end of
the following business day or such later time as may be agreed upon by the Authorized Participant and the Sponsor following the Redemption
Order Date. An Authorized Participant may not withdraw a redemption order without the prior consent of the Sponsor at its discretion.
To the extent there is a difference
between the price actually received by the Trust to sell a Basket worth of LTC in the redemption process compared to the cash value of
the Basket (i.e., if there is a difference between the amount received by the Trust to sell the requisite amount of LTC and the Trust's
NAV calculation), that difference will also be the responsibility of the redeeming Authorized Participant. Expenses related to the sale
of LTC in connection with a redemption order and transfer of LTC from the Vault Accounts will not be the responsibility of the Trust.
Determination of Redemption
Distribution
The redemption distribution
from the Trust will consist of a transfer to the redeeming Authorized Participant or its designee of an amount of cash that is determined
in the same manner as the determination of Basket Deposits discussed above. The Authorized Participant is responsible for all expenses
related to the sale of LTC in connection with a redemption order.
Delivery of Redemption
Distribution
Once the Transfer Agent notifies
the Custodians, the Cash Custodian, the Marketing Agent and the Sponsor that the Shares have been received in the Transfer Agent's
DTC account, the Administrator instructs the Cash Custodian or Prime Broker to transfer the cash amount from the Cash Account to the designee
of the Authorized Participant. For a Cash Redemption Order, the redemption distribution due from the Trust will be sent by the Cash Custodian
to the Authorized Participant or its designee on the following business day or such later time as may be agreed upon by the Authorized
Participant and the Sponsor, following the Redemption Order Date if, by 4:00 p.m. ET, on such business day, the Transfer Agent's
DTC account has been credited with the Baskets to be redeemed. If the Transfer Agent's DTC account has not been credited with all
of the Baskets to be redeemed by such time, the redemption distribution will be cancelled or delayed until such time as the Transfer Agent
confirms receipt of all such Shares.
Suspension of Creation
and Redemption Orders
The Sponsor may, in its discretion,
suspend the right of creation or redemption, or postpone the creation or redemption settlement date, (1) for any period during which the
Exchange is closed other than customary weekend or holiday closings, or trading on the Exchange is suspended or restricted, (2) for any
period during which an emergency exists as a result of which delivery, disposal or evaluation of LTC is not reasonably practicable (for
example, as a result of a significant technical failure, power outage, or network error), or (3) for such other period as the Sponsor
determines to be necessary for the protection of the Trust or its Shareholders. For example, the Sponsor may determine that it is necessary
to suspend redemptions to allow for the orderly liquidation of the Trust's assets. None of the Sponsor, the person authorized to
take redemption orders in the manner provided in the Authorized Participant Agreement, or the Custodians will be liable to any person
or in any way for any loss or damages that may result from any such suspension or postponement. If the Sponsor has difficulty liquidating
the Trust's positions, e.g., because of a market disruption event or an unanticipated delay in the liquidation of a position in
an over-the-counter contract, it may be appropriate to suspend redemptions until such time as such circumstances are rectified. The Sponsor
will provide notice to Shareholders of any such suspensions in a prospectus supplement and/or through a current report on Form 8-K.
98
Rejection of Redemption
Orders
Redemption orders must be
made in whole Baskets. The Sponsor or its designee has the absolute right, but does not have any obligation, to reject any redemption
order if the Sponsor determines that:
●
the redemption order is not in proper form as described in the Authorized Participant Agreement;
●
the acceptance of the redemption order would not be in the best interest of the Trust;
●
the acceptance of the redemption order would have adverse tax consequences to the Trust or its Shareholders;
●
the acceptance of the redemption order presents a security risk to the Trust, the Sponsor, the Transfer Agent or the Cash Custodian;
●
the acceptance of the redemption order would, in the opinion of counsel to the Sponsor, be unlawful; or
●
circumstances outside the control of the Trust, the Sponsor, or the Cash Custodian make it impractical or not feasible for the Shares to be delivered under the redemption order.
Creation and Redemption
Transaction Fees
To compensate the Transfer
Agent for expenses incurred in connection with the creation and redemption of Baskets, an Authorized Participant is required to pay the
Transfer Agent Fee to the Transfer Agent to create or redeem Baskets, which does not vary in accordance with the number of Baskets in
such order. In addition, an Authorized Participant is required to pay the Execution Charges to the Trust or the Sponsor, as applicable,
to reimburse the operational processing and brokerage costs, transfer fees, network fees and stamp taxes. The Transaction Fees may be
reduced, increased or otherwise changed by the Sponsor.
Transfers of LTC into the
Trust's Trading Account are off-chain transactions and transfers from the Trust's Trading Account to the Trust's Vault
Accounts are "on-chain" transactions represented on the Litecoin Blockchain. Any costs related to transfers from the Trust's
Trading Account to the Trust's Vault Accounts are borne by the Sponsor (and not the Trust or its Shareholders).
Tax Responsibility
Authorized Participants are
responsible for any transfer tax, sales or use tax, stamp tax, recording tax, value added tax or similar tax or governmental charge applicable
to the creation or redemption of Baskets, regardless of whether or not such tax or charge is imposed directly on the Authorized Participant,
and agree to indemnify the Sponsor and the Trust if they are required by law to pay any such tax, together with any applicable penalties,
additions to tax and interest thereon.
Secondary Market Transactions
As noted, the Trust will create
and redeem Shares from time to time, but only in one or more Baskets. The creation and redemption of Shares are only made in exchange
for delivery to the Trust or the distribution by the Trust of the amount of cash determined as described above.
As discussed above, Authorized
Participants are the only persons that may place orders to create and redeem Baskets. Authorized Participants must be registered broker-dealers
or other securities market participants, such as banks and other financial institutions that are not required to register as broker-dealers
to engage in securities transactions. An Authorized Participant is under no obligation to create or redeem Baskets, and an Authorized
Participant is under no obligation to offer to the public any Shares it does create.
Authorized Participants that
do offer to the public Shares from the Baskets they create will do so at per-Share offering prices that reflect, among other factors,
the value of the Trust's assets, supply of and demand for Shares and market conditions at the time of a transaction. Baskets are
generally redeemed when the market price per Share is at a discount to the NAV. Shares initially constituting the same Basket but offered
by Authorized Participants to the public at different times may have different offering prices. An order for one or more Baskets may be
placed by an Authorized Participant on behalf of multiple clients. Authorized Participants who make deposits with the Trust in exchange
for Baskets receive no fees, commissions or other forms of compensation or inducement of any kind from either the Trust or the Sponsor,
and no such person has any obligation or responsibility to the Sponsor to effect any sale or resale of Shares. Shares trade in the secondary
market on the Exchange.
Shares are expected to trade
in the secondary market on the Exchange. Shares may trade in the secondary market at prices that are lower or higher relative to their
NAV. The amount of the discount or premium in the trading price relative to the NAV may be influenced by various factors, including the
value of the Trust's assets, supply and demand for the Shares and market conditions at the time of a transaction.
99
EXPENSES
Expenses to Be Paid by the Sponsor
The Sponsor has agreed to
assume the Sponsor-Paid Expenses, which are the following fees and expenses incurred by the Trust: the Marketing Fee, the Administrator
Fee, the Custodian Fee, the Cash Custodian Fee, the Prime Broker Fee, the Transfer Agent Fee, the Trustee's fee, applicable license
fees, including the licensing fees related to the Index License Agreement, fees and expenses related to public trading of the Shares on
Nasdaq (including marketing, legal and audit fees and expenses), ordinary legal expenses, audit fees, regulatory fees, including any fees
relating to the registration of the Shares with the SEC, printing and mailing costs and costs of maintaining the Trust's website.
There is no cap on the amount of Sponsor-paid Expenses. At the Sponsor's sole discretion, all or any portion of a Sponsor-paid Expense
may be redesignated as an Additional Trust Expense. The Sponsor will provide Shareholders with notice of any such redesignation in a prospectus
supplement and/or through a current report on Form 8-K or in the Trust's annual or quarterly reports.
Extraordinary and Other Expenses
In certain extraordinary circumstances,
the Trust may pay expenses in addition to the Sponsor's Fee, including, but not limited to, any expenses of the Trust that are not
assumed by the Sponsor, taxes and governmental charges, expenses and costs of any extraordinary services performed by the Sponsor (or
any other Service Provider) on behalf of the Trust, indemnification expenses of the Custodians, Administrator or other agents, service
providers or counterparties of the Trust and extraordinary legal fees and expenses (collectively, "Additional Trust Expenses").
If the Trust incurs any Additional Trust Expenses, the Sponsor or its delegate may cause the Trust (or its delegate) to convert LTC into
U.S. dollars at the price available through the Prime Broker's ________ Prime service (less applicable trading fees) through the
Trading Platform which the Sponsor is able to obtain using commercially reasonable efforts. The number of LTC represented by a Share will
decline each time the Trust pays Additional Trust Expenses by transferring or selling LTC. Although the Sponsor cannot definitively state
the frequency or magnitude of the Additional Trust Expenses, the Sponsor expects that they may occur infrequently, if at all.
Disposition of LTC
To pay the Sponsor's
Fee, the Custodians will, when directed by the Sponsor, (i) withdraw from the LTC Account the number of LTC equal to the accrued but unpaid
Sponsor's Fee and (ii) transfer such LTC to an account maintained by a Custodian for the Sponsor or to an account affiliated with
the Sponsor. The Trust is not responsible for paying any fees or costs associated with the transfer of LTC to the Sponsor or the sale
of LTC for costs not included in the Sponsor's Fee. In addition, if the Trust incurs any Additional Trust Expenses, the Sponsor
or its delegate may cause the Trust (or its delegate) to convert LTC into U.S. dollars at the price available through the Prime Broker's
________ Prime service (less applicable trading fees) through the Trading Platform which the Sponsor is able to obtain using commercially
reasonable efforts. The number of LTC represented by a Share will decline each time the Trust pays Additional Trust Expenses by transferring
or selling LTC. Shareholders do not have the option of choosing to pay their proportionate shares of Additional Trust Expenses in lieu
of having their shares of Additional Trust Expenses paid by the Trust's disposition of LTC. Assuming that the Trust is treated as
a grantor trust for U.S. federal income tax purposes, the transfer or sale of LTC to pay the Trust's expenses will be a taxable
event for Shareholders. See "U.S. Federal Income Tax Consequences—Tax Consequences to U.S. Holders."
Transfers of LTC to and from
the Vault Accounts and the Trading Account, and transfers from the Trading Account to third-party digital asset brokers or dealers are
conducted "on chain" in transactions represented on the Litecoin Blockchain. On-chain transactions are subject to all of the
risks of the Litecoin Blockchain, including the risk that transactions will be made erroneously and are generally irreversible.
In order to pay the Sponsor's
Fee, the Sponsor may transfer LTC from the Trading Account to the Sponsor's account at the Prime Broker. Such a transaction will
normally be conducted "off chain" through book entries in the Custodian's records. The Sponsor may also transfer LTC
directly from a Vault Account to an account affiliated with the Sponsor.
Because the number of the
Trust's LTC will decrease as a consequence of the payment of the Sponsor's Fee in LTC or the sale of LTC to pay Additional
Trust Expenses (and the Trust will incur additional fees associated with converting LTC into U.S. dollars), the number of LTC represented
by a Share will decline at such time and the Trust's LTC Holdings may also decrease. Accordingly, the Shareholders will bear the
cost of the Sponsor's Fee and any Additional Trust Expenses.
The Sponsor will also cause
the sale of the Trust's LTC if the Sponsor determines that such sale is required by applicable law or regulation or in connection
with the termination and liquidation of the Trust. The Sponsor will not be liable or responsible in any way for depreciation or loss incurred
by reason of any sale of LTC.
100
BOOK-ENTRY-ONLY
SHARES
The Securities Depository; Book-Entry-Only
System; Global Security
In accordance with the relevant
provisions of the Trust Documents, the Trust's Shares have been and will only be issued in book-entry-only form, so individual certificates
will not be issued for the Shares but rather one or more global certificates will evidence all of the Shares outstanding at any time.
DTC will act as securities
depository for the Shares. DTC is a limited-purpose trust company organized under the laws of the State of New York, a member of the Federal
Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing
agency" registered pursuant to the provisions of section 17A of the Exchange Act. DTC was created to hold securities of DTC Participants
and to facilitate the clearance and settlement of transactions in such securities among the DTC Participants through electronic book-entry
changes. This eliminates the need for physical movement of securities certificates. DTC Participants include securities brokers and dealers,
banks, trust companies, clearing corporations, and certain other organizations, some of whom (and/or their representatives) own DTC. Access
to the DTC system is also available to others such as banks, brokers, dealers and trust companies that clear through or maintain a custodial
relationship with a DTC Participant, either directly or indirectly. DTC is expected to agree with and represent to the DTC Participants
that it will administer its book-entry system in accordance with its rules and by-laws and the requirements of law.
Individual certificates will
not be issued for the Shares. Instead, one or more global certificates will be signed by the Transfer Agent on behalf of the Trust, registered
in the name of Cede & Co., as nominee for DTC, and deposited with the Transfer Agent on behalf of DTC. The global certificates will
evidence all of the Shares outstanding at any time. The representations, undertakings and agreements made on the part of the Trust in
the global certificates are made and intended for the purpose of binding only the Trust and not the Transfer Agent or the Sponsor individually.
Upon the settlement date of
any creation, transfer or redemption of Shares, DTC will credit or debit, on its book-entry registration and transfer system, the amount
of the Shares so created, transferred or redeemed to the accounts of the appropriate DTC Participants. The Transfer Agent and the Authorized
Participants will designate the accounts to be credited and charged in the case of creation or redemption of Shares.
Beneficial ownership of the
Shares will be limited to DTC Participants, Indirect Participants and persons holding interests through DTC Participants and Indirect
Participants. Owners of beneficial interests in the Shares will be shown on, and the transfer of ownership will be effected only through,
records maintained by DTC (with respect to DTC Participants), the records of DTC Participants (with respect to Indirect Participants),
and the records of Indirect Participants (with respect to Shareholders that are not DTC Participants or Indirect Participants). Shareholders
are expected to receive from or through the DTC Participant maintaining the account through which the Shareholder has purchased their
Shares a written confirmation relating to such purchase.
Shareholders that are not
DTC Participants may transfer the Shares through DTC by instructing the DTC Participant or Indirect Participant through which the Shareholders
hold their Shares to transfer the Shares. Shareholders that are DTC Participants may transfer the Shares by instructing DTC in accordance
with the rules of DTC. Transfers of Shares will be made in accordance with standard securities industry practice.
DTC may decide to discontinue
providing its service with respect to Baskets and/or the Shares by giving notice to the Transfer Agent and the Sponsor. Under such circumstances,
the Sponsor will find a replacement for DTC to perform its functions at a comparable cost or, if a replacement is unavailable, the Sponsor
will act to terminate the Trust.
The rights of the Shareholders
generally must be exercised by DTC Participants acting on their behalf in accordance with the rules and procedures of DTC. Because the
Shares can only be held in book-entry form through DTC and DTC Participants, investors must rely on DTC, DTC Participants and any other
financial intermediary through which they hold the Shares to receive the benefits and exercise the rights described in this section. Investors
should consult with their broker or financial institution to find out about procedures and requirements for securities held in book-entry
form through DTC.
101
PROVISIONS
OF LAW
According to applicable law,
indemnification of the Sponsor is payable only if the Sponsor determined, in good faith, that the act, omission or conduct that gave rise
to the claim for indemnification was in the best interest of the Trust and the act, omission or activity that was the basis for such loss,
liability, damage, cost or expense was not the result of negligence or misconduct and such liability or loss was not the result of negligence
or misconduct by the Sponsor, and such indemnification or agreement to hold harmless is recoverable only out of the assets of the Trust.
Provisions of Federal and State Securities
Laws
This offering is made pursuant
to federal and state securities laws. The SEC and state securities agencies take the position that indemnification of the Sponsor that
arises out of an alleged violation of such laws is prohibited unless certain conditions are met.
These conditions require that
no indemnification of the Sponsor or any underwriter for the Trust may be made in respect of any losses, liabilities or expenses arising
from or out of an alleged violation of federal or state securities laws unless: (i) there has been a successful adjudication on the merits
of each count involving alleged securities law violations as to the party seeking indemnification and the court approves the indemnification;
(ii) such claim has been dismissed with prejudice on the merits by a court of competent jurisdiction as to the party seeking indemnification;
or (iii) a court of competent jurisdiction approves a settlement of the claims against the party seeking indemnification and finds that
indemnification of the settlement and related costs should be made, provided that, before seeking such approval, the Sponsor or other
indemnitee must apprise the court of the position held by regulatory agencies against such indemnification. These agencies are the SEC
and the securities administrator of the state or states in which the plaintiffs claim they were offered or sold interests.
Provisions of the Securities Act
Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to the Sponsor or directors, officers, or persons controlling the Trust,
the Trust has been informed that the SEC believes that such indemnification is against public policy as expressed in the Securities Act
and is therefore unenforceable.
MANAGEMENT;
VOTING BY SHAREHOLDERS
The Shareholders of the Trust
take no part in the management or control of, and have no voice in, the Trust's operations or business. Shareholders have very limited
voting rights as set forth in the Trust Agreement. However, certain actions, such as amendments or modifications that appoint a new sponsor
(upon the withdrawal, removal or the adjudication or admission of bankruptcy or insolvency of the Sponsor) require the consent of Shareholders
owning a majority (over 50%) of the outstanding Shares of the Trust (not including Shares held by the Sponsor or its Affiliates).
The Sponsor generally has
the right to amend the Trust Agreement as it applies to the Trust, provided that the Shareholders have the right to vote only if expressly
required under Delaware or federal law or rules or regulations of Nasdaq, or if submitted to the Shareholders by the Sponsor at its sole
discretion. No amendment affecting the Trustee will be binding upon or effective against the Trustee unless consented to by the Trustee
in the form of an instruction letter.
BOOKS AND RECORDS
The Trust keeps its books
of record and account at the office of the Sponsor located at 437 Madison Avenue, 28
th
Floor, New York, NY 10022, or at the
offices of the Administrator, or such office, including that of an administrative agent, as it may subsequently designate upon notice.
The books and records are open to inspection by any person who establishes to the Trust's satisfaction that such person is a Shareholder
upon reasonable advance notice at all reasonable times during usual business hours of the Trust.
The Trust keeps a copy of
the Trust Agreement on file in the Sponsor's office, which will be available for inspection by any Shareholder at all times during
the Sponsor's usual business hours upon reasonable advance notice.
102
GOVERNING LAW;
CONSENT TO DELAWARE JURISDICTION
The rights of the Sponsor,
the Trust, DTC (as registered owner of the Trust's global certificate for Shares) and the Shareholders are governed by the laws
of the State of Delaware except for causes of action for violation of U.S. federal or state securities laws. Section 22 of the Securities
Act creates concurrent jurisdiction for federal and state courts over all suits brought to enforce any duty or liability created by the
Securities Act or the rules and regulations thereunder. Investors cannot waive compliance with the federal securities laws and the rules
and regulations thereunder.
STATEMENTS,
FILINGS AND REPORTS
Statements, Filings and Reports
After the end of each fiscal
year, the Sponsor will cause to be prepared an annual report containing audited financial statements prepared in accordance with U.S.
GAAP for the Trust. The annual report will be in such form and contain such information as will be required by applicable laws, rules
and regulations and may contain such additional information which the Sponsor determines shall be included. The annual report shall be
filed with the SEC and Nasdaq and shall be distributed to such persons and in such manner as shall be required by applicable laws, rules
and regulations.
The Sponsor is responsible
for the registration and qualification of the Shares under federal securities laws and any other securities and blue sky laws of the United
States or any other jurisdiction as the Sponsor may select. The Sponsor will also prepare, or cause to be prepared, and file any periodic
reports or updates required under the Exchange Act.
The accounts of the Trust
will be audited, as required by law and as may be directed by the Sponsor, by independent registered public accountants designated by
the Sponsor. The accountants' report will be furnished by the Sponsor to Shareholders upon request.
The Sponsor will make elections,
file tax returns and prepare, disseminate and file tax reports as advised by its counsel or accountants and/or as required by any applicable
statute, rule or regulation.
Fiscal Year
The fiscal year of the Trust
is the period ending December 31 of each year. The Sponsor may select an alternate fiscal year.
DESCRIPTION
OF THE TRUST AGREEMENT
The following is a description
of the material terms of the Trust Agreement. The Trust Agreement establishes the roles, rights and duties of the Sponsor and the Trustee.
The Sponsor
Liability of the Sponsor and Indemnification
The Sponsor and its affiliates
(each a "Covered Person") will not be liable to the Trust or any Shareholder for any action taken or for refraining from taking
any action in good faith, having determined that such course of conduct was in the best interests of the Trust. However, the preceding
liability exclusion will not protect the Sponsor against any liability resulting from its own fraud, willful misconduct, bad faith or
gross negligence in the performance of its duties.
Each Covered Person will be
indemnified by the Trust and held harmless against any loss, judgment, liability, expense incurred or amount paid in settlement of any
claim sustained by it in connection with the Covered Person's activities for the Trust, without fraud, gross negligence, bad faith,
willful misconduct or a material breach of the Trust Agreement on the part of such indemnified party arising out of or in connection with
the performance of its obligations under the Trust Agreement and under each other agreement entered into by the Sponsor in furtherance
of the administration of the Trust (including, without limiting the scope of the foregoing, any Authorized Participant Agreement) or any
actions taken in accordance with the provisions of the Trust Agreement. Such indemnity shall include payment from the Trust of the costs
and expenses incurred by such indemnified party in defending itself against any claim or liability in its capacity as Sponsor. Any amounts
payable to an indemnified party may be payable in advance or shall be secured by a lien on the Trust. The Sponsor may, in its discretion,
undertake any action that it may deem necessary or desirable in respect of the Trust Agreement and the interests of the Shareholders and,
in such event, the legal expenses and costs of any such actions shall be expenses and costs of the Trust and the Sponsor shall be entitled
to be reimbursed therefor by the Trust.
103
Fiduciary and Regulatory Duties of the Sponsor
The Sponsor is not effectively
subject to the duties and restrictions imposed on "fiduciaries" under both statutory and common law. Rather, the general fiduciary
duties that would apply to the Sponsor are defined and limited in scope by the Trust Agreement.
The Trust Agreement provides
that in addition to any other requirements of applicable law, no Shareholder shall have the right, power or authority to bring or maintain
a derivative action, suit or other proceeding on behalf of the Trust unless two or more Shareholders who (i) are not affiliates of one
another and (ii) collectively hold at least 10% of the outstanding Shares join in the bringing or maintaining of such action, suit or
other proceeding.
Beneficial owners may have
the right, subject to certain legal requirements, to bring class actions in federal court to enforce their rights under federal securities
laws and the rules and regulations promulgated thereunder by the SEC. Beneficial owners who have suffered losses in connection with the
purchase or sale of their beneficial interests may be able to recover such losses from the Sponsor where the losses result from a violation
by the Sponsor of the anti-fraud provisions of the federal securities laws.
Actions Taken to Protect the Trust
The Sponsor may, in its own
discretion, prosecute, defend, settle or compromise actions or claims at law or in equity that it considers necessary or proper to protect
the Trust or the interests of the Shareholders. The expenses incurred by the Sponsor in connection therewith (including the fees and disbursements
of legal counsel) will be expenses of the Trust and are deemed to be Additional Trust Expenses. The Sponsor will be entitled to be reimbursed
for the Additional Trust Expenses.
Successor Sponsors
If the Sponsor is adjudged
bankrupt or insolvent, the Trustee may terminate and liquidate the Trust and distribute its remaining assets. Neither the Trustee nor
the Administrator has any obligation to appoint a successor sponsor or to assume the duties of the Sponsor and will have no liability
to any person because the Trust is or is not terminated as described in the preceding sentence.
The Trustee
The Trustee is a fiduciary
under the Trust Agreement and must satisfy the requirements of Section 3807 of the Delaware Trust Statute. However, the fiduciary duties,
responsibilities and liabilities of the Trustee are limited by, and are only those specifically set forth in, the Trust Agreement.
Limitation on Trustee's Liability
Under the Trust Agreement,
the Sponsor has exclusive control of the management of all aspects of the activities of the Trust and the Trustee has only nominal duties
and liabilities to the Trust. The Trustee is appointed to serve as the trustee for the sole purpose of satisfying Section 3807(a) of the
DSTA, which requires that the Trust have at least one trustee with a principal place of business in the State of Delaware. The duties
of the Trustee are limited to (i) accepting legal process served on the Trust in the State of Delaware and (ii) the execution of any certificates
required to be filed with the Delaware Secretary of State which the Trustee is required to execute under the DSTA.
To the extent the Trustee
has duties (including fiduciary duties) and liabilities to the Trust or the Shareholders under the DSTA, such duties and liabilities will
be replaced by the duties and liabilities of the Trustee expressly set forth in the Trust Agreement. The Trustee will have no obligation
to supervise, nor will it be liable for, the acts or omissions of the Sponsor, Transfer Agent, Administrator, Custodians or any other
person. Neither the Trustee, either in its capacity as trustee or in its individual capacity, nor any director, officer or controlling
person of the Trustee is, or has any liability as, the issuer, director, officer or controlling person of the issuer of Shares. The Trustee's
liability is limited solely to the express obligations of the Trustee as set forth in the Trust Agreement.
Under the Trust Agreement,
the Sponsor has the exclusive management, authority and control of all aspects of the activities of the Trust. The Trustee has no duty
or liability to supervise or monitor the performance of the Sponsor, nor does the Trustee have any liability for the acts or omissions
of the Sponsor. The existence of a trustee should not be taken as an indication of any additional level of management or supervision over
the Trust. The Trust Agreement provides that the management authority with respect to the Trust is vested directly in the Sponsor. The
Trust Agreement provides that the Trustee is not responsible or liable for the genuineness, enforceability, collectability, value, sufficiency,
location or existence of any of the LTC or other assets of the Trust.
104
Possible Repayment of Distributions Received
by Shareholders; Indemnification by Shareholders
The Shares are limited liability
investments. Investors may not lose more than the amount that they invest plus any profits recognized on their investment. Although it
is unlikely, the Sponsor may, from time to time, make distributions to the Shareholders. However, Shareholders could be required, as a
matter of bankruptcy law, to return to the estate of the Trust any distribution they received at a time when the Trust was in fact insolvent
or in violation of the Trust Agreement. In addition, the Trust Agreement provides that Shareholders will indemnify the Trust for any harm
suffered by it as a result of Shareholders' actions unrelated to the activities of the Trust.
The foregoing repayment of
distributions and indemnity provisions (other than the provision for Shareholders indemnifying the Trust for taxes imposed upon it by
a state, local or foreign taxing authority, which is included only as a formality due to the fact that many states do not have statutory
trust statutes and therefore the tax status of the Trust in such states might, theoretically, be challenged) are commonplace in statutory
trusts and limited partnerships.
Indemnification of the Trustee
The Trustee and any of the
officers, directors, employees and agents of the Trustee shall be indemnified by the Trust as primary obligor and held harmless against
any loss, damage, liability, claim, action, suit, cost, expense, disbursement (including the reasonable fees and expenses of counsel and
expenses incurred in connection with enforcement of the Trustee's indemnification rights under the Trust Agreement), tax or penalty
of any kind and nature whatsoever arising out of, imposed upon or asserted at any time against such indemnified person in connection with
the performance of its obligations under the Trust Agreement, the creation, operation or termination of the Trust or the transactions
contemplated therein; provided, however, that neither the Trust nor the Sponsor shall be required to indemnify any such indemnified person
for any such expenses that are a result of the willful misconduct, bad faith or gross negligence of such indemnified person. If the Trust
shall have insufficient assets or improperly refuses to pay such an indemnified person within 60 days of a request for payment owed under
the Trust Agreement, the Sponsor shall, as secondary obligor, compensate or reimburse the Trustee or indemnify, defend and hold harmless
such an indemnified person as if it were the primary obligor under the Trust Agreement. Any amount payable to such an indemnified person
under the Trust Agreement may be payable in advance and shall be secured by a lien on the Trust property. The obligations of the Sponsor
and the Trust to indemnify such indemnified persons under the Trust Agreement shall survive the termination of the Trust Agreement.
Holding of Trust Property
The Trust will hold and record
the ownership of the Trust's assets in a manner such that it will be owned for the benefit of the Shareholders for the purposes
of, and subject to and limited by the terms and conditions set forth in, the Trust Agreement. Other than issuance of the Shares, the Trust
will not create, incur or assume any indebtedness or borrow money from or loan money to any person. The Trustee may not commingle its
assets with those of any other person.
The Trustee may employ agents,
attorneys, accountants, auditors and nominees and will not be answerable for the conduct or misconduct of any such custodians, agents,
attorneys or nominees if such custodians, agents, attorneys and nominees have been selected with reasonable care.
Resignation, Discharge or Removal of Trustee;
Successor Trustees
The Trustee may resign as
Trustee by written notice of its election so to do, delivered to the Sponsor with at least 180 days' notice. The Sponsor may remove
the Trustee in its discretion upon 60 days' notice to the Trustee. If the Trustee resigns or is removed, the Sponsor, acting on
behalf of the Shareholders, shall appoint a successor trustee. The successor trustee will become fully vested with all of the rights,
powers, duties and obligations of the outgoing Trustee.
If the Trustee resigns and
no successor trustee is appointed within 180 days after the Trustee notifies the Sponsor of its resignation, the Trustee will terminate
and liquidate the Trust and distribute its remaining assets.
105
Amendments to the Trust Agreement
The Trust Agreement can be
amended by the Sponsor in its sole discretion and without the Shareholders' consent by making an amendment, a Trust Agreement supplemental
thereto, or an amended and restated trust agreement, provided that no such amendment or supplement may be made if it would adversely affect
the status of the Trust as a grantor trust for U.S. federal income tax purposes. Any such restatement, amendment and/or supplement shall
be effective on such date as designated by the Sponsor in its sole discretion. However, any amendment to the Trust Agreement that affects
the duties, liabilities, rights or protections of the Trustee shall require the Trustee's prior written consent, which it may grant
or withhold in its sole discretion. Any amendment to the Trust Agreement that materially adversely affects the interests of the Shareholders
shall not be effective any earlier than 20 days after receipt by the affected Shareholders of a notice provided by the Sponsor with respect
to any such amendment.
Termination of the Trust
The Trust will dissolve if
any of the following events occur:
●
A U.S. federal or state regulator requires the Trust to shut down or forces the Trust to liquidate its LTC or seizes, impounds or otherwise restricts access to Trust assets;
●
Any ongoing event exists that either prevents the Trust from converting or makes impractical the Trust's reasonable efforts to convert LTC to U.S. Dollars;
●
A certificate of dissolution or revocation of the Sponsor's charter is filed (and 90 days have passed after the date of notice to the Sponsor of revocation without a reinstatement of its charter) or upon the withdrawal, removal, adjudication or admission of bankruptcy or insolvency of the Sponsor, or an event of withdrawal unless (i) at the time there is at least one remaining Sponsor or (ii) within 90 days of such event of withdrawal Shareholders holding at least a majority of the Shares (not including Shares held by the Sponsor and its affiliates) agree in writing to continue the Trust and to select, effective as of the date of such event, one or more successor sponsors; or
●
Shareholders holding at least 50% of the outstanding Shares, not including affiliated parties of the Sponsor for purposes of calculation of such percentage, notify the Sponsor that they elect to dissolve the Trust, notice of which is sent to the Sponsor not less than 90 business days prior to the effective date of dissolution.
The Sponsor may, in its sole
discretion, dissolve the Trust if any of the following events occur:
●
The SEC determines that the Trust is an investment company required to be registered under the Investment Company Act of 1940;
●
The CFTC determines that the Trust is a commodity pool under the CEA;
●
The Trust is determined to be a "money service business" under the regulations promulgated by FinCEN under the authority of the U.S. Bank Secrecy Act and is required to comply with certain FinCEN regulations thereunder;
●
The Trust is required to obtain a license or make a registration under any state law regulating money transmitters, money services businesses, providers of prepaid or stored value or similar entities, or virtual currency businesses;
●
The Trust becomes insolvent or bankrupt;
●
The Prime Broker, Cash Custodian, or the Custodians resign or are removed without replacement;
●
All of the Trust's LTC are sold;
●
The Sponsor determines that the size of the Trust Estate in relation to the expenses of the Trust makes it unreasonable or imprudent to continue the Trust;
●
The Sponsor receives notice from the IRS or from counsel for the Trust or the Sponsor that the Trust fails to qualify for treatment, or will not be treated, as a grantor trust under the Code;
●
The Trustee notifies the Sponsor of the Trustee's election to resign and the Sponsor does not appoint a successor trustee within 180 days; or
●
The Sponsor determines, in its sole discretion, that it is desirable or advisable for any reason to discontinue the affairs of the Trust.
The death, legal disability,
bankruptcy, insolvency, dissolution, or withdrawal of any Shareholder (as long as such Shareholder is not the sole Shareholder of the
Trust) shall not result in the termination of the Trust, and such Shareholder, its estate, custodian or personal representative shall
have no right to withdraw or value such Shareholder's Shares. Each Shareholder (and any assignee thereof) expressly agrees that
in the event of its death, it waives on behalf of itself and its estate, and it directs the legal representative of its estate and any
person interested therein to waive, the furnishing of any inventory, accounting or appraisal of the assets of the Trust and any right
to an audit or examination of the books of the Trust, except for such rights as are set forth in Article VIII of the Trust Agreement relating
to the books of account and reports of the Trust.
If the Trust is forced to
liquidate, the Trust will be liquidated under the Sponsor's direction. The Sponsor, on behalf of the Trust, will engage directly
with either accessible LTC Exchanges or over-the-counter LTC markets to liquidate the Trust's LTC as promptly as possible while
obtaining the best fair value possible. The proceeds therefrom will be applied and distributed in the following order of priority: (a)
to the expenses of liquidation and termination and to creditors, including Shareholders who are creditors, to the extent otherwise permitted
by law, in satisfaction of liabilities of the Trust other than liabilities for distributions to Shareholders and (b) to the holders of
Shares
pro rata
in accordance with the respective percentage of percentages of Shares that they hold.
106
Governing Law; Consent to New York Jurisdiction
The Trust Agreement and the
rights of the Sponsor, Trustee, DTC and Shareholders under the Trust Agreement are governed by the laws of the State of Delaware. The
________ Custody Agreement and Authorized Participant Agreements are governed by the laws of the State of New York. The ________ Custody
Agreement is governed by the laws of the state of South Dakota. The ________ Custody Agreement is governed by the laws of England and
Wales. The Sponsor, the Trustee and DTC and, by accepting Shares, each DTC Participant and each Shareholder consent to the jurisdiction
of the courts of the State of New York and any federal courts located in the Borough of Manhattan in New York City.
U.S. FEDERAL
INCOME TAX CONSEQUENCES
Subject to the discussion
below in "Tax Treatment of the Trust" and "Uncertainty Regarding the U.S. Federal Income Tax Treatment of LTC,"
the following discussion constitutes the opinion of Chapman and Cutler LLP, special tax counsel to the Trust, regarding the material U.S.
federal income tax consequences of the ownership of Shares. This discussion does not describe all of the tax consequences that may be
relevant to a beneficial owner of Shares in light of the beneficial owner's particular circumstances, including tax consequences
applicable to beneficial owners subject to special rules, such as:
●
financial institutions;
●
dealers in securities;
●
traders in securities or commodities that have elected to apply a mark-to-market method of tax accounting in respect thereof;
●
persons holding Shares as part of a hedge, "straddle," integrated transaction or similar transaction;
●
persons holding Shares acquired by them as part of a Basket or redeeming Shares in exchange for the underlying LTC represented by the redeemed Shares;
●
U.S. Holders (as defined below) whose functional currency is not the U.S. dollar;
●
entities or arrangements classified as partnerships for U.S. federal income tax purposes;
●
real estate investment trusts;
●
regulated investment companies; and
●
tax-exempt entities, including individual retirement accounts.
This discussion applies only
to Shares that are held as capital assets and does not address alternative minimum tax consequences or consequences of the Medicare contribution
tax on net investment income.
If an entity or arrangement
that is classified as a partnership for U.S. federal income tax purposes holds Shares, the U.S. federal income tax treatment of a partner
will generally depend on the status of the partner and the activities of the partnership. Partnerships holding Shares and partners in
those partnerships are urged to consult their tax advisers about the particular U.S. federal income tax consequences of owning Shares.
This discussion is based on
the Code, administrative pronouncements, judicial decisions and final, temporary and proposed Treasury regulations as of the date hereof,
changes to any of which subsequent to the date hereof may affect the tax consequences described herein. Prospective investors are urged
to consult their tax advisers about the application of the U.S. federal income tax laws to their particular situations, as well as any
tax consequences arising under the laws of any state, local or foreign taxing jurisdiction.
Tax Treatment of the Trust
The Sponsor intends to take
the position that the Trust will be treated as a grantor trust for U.S. federal income tax purposes. Assuming that the Trust is a grantor
trust, the Trust will not be subject to U.S. federal income tax. Rather, a
pro rata
portion of the Trust's income, gain,
losses and deductions will "flow through" to each beneficial owner of Shares.
107
If the IRS were successful
in asserting that the Trust is not properly classified as a grantor trust, the Trust might be classified as a partnership for U.S. federal
income tax purposes, although due to the uncertain treatment of LTC for U.S. federal income tax purposes (discussed below), there can
be no assurance in this regard. If the Trust were classified as a partnership for U.S. federal income tax purposes, the tax consequences
of owning Shares generally would not be materially different from the tax consequences described herein, although there might be certain
differences, including with respect to timing. In addition, tax information reports provided to Shareholders would be made in a different
form. If the Trust were not classified as either a grantor trust or a partnership for U.S. federal income tax purposes, it would be classified
as a corporation for such purposes. In that event, the Trust would be subject to entity-level U.S. federal income tax (currently at a
maximum rate of 21%) on its net taxable income and certain distributions made by the Trust to Shareholders would be taxable as dividends
to the extent of the Trust's current and accumulated earnings and profits (which, in the case of Non-U.S. Holders (as defined below),
generally would be subject to U.S. federal withholding tax at a 30% rate (or a lower rate provided by an applicable income tax treaty)).
The remainder of this discussion
is based on the assumption that the Trust will be treated as a grantor trust for U.S. federal income tax purposes.
Uncertainty Regarding the U.S. Federal Income
Tax Treatment of LTC
As discussed below, each beneficial
owner of Shares generally will be treated for U.S. federal income tax purposes as the owner of an undivided interest in the LTC held in
the Trust. Many significant aspects of the U.S. federal income tax treatment of LTC are uncertain, and the Sponsor does not intend to
request a ruling from the IRS on these issues. On March 25, 2014, the IRS released a notice (the "Notice"), which discusses
certain aspects of the treatment of virtual currencies, such as LTC, for U.S. federal income tax purposes. In the Notice, the IRS stated
that, for U.S. federal income tax purposes, (i) LTC are "property" that is not currency and (ii) LTC may be held as capital
assets. There can be no assurance, however, that the IRS will not alter its position with respect to LTC in the future or that a court
would uphold the treatment set forth in the Notice. In addition, legislation has been introduced that would, if enacted, cause LTC to
be treated as currency for U.S. federal income tax purposes. If LTC were properly treated as currency for U.S. federal income tax purposes,
gain recognized on the disposition of LTC would constitute ordinary income, and losses recognized on the disposition of LTC could be subject
to special reporting requirements applicable to "reportable transactions." The remainder of this discussion assumes that LTC
are properly treated for U.S. federal income tax purposes as property that is not currency. Special tax counsel to the Trust expresses
no opinion regarding these aspects of the U.S. federal income tax treatment of LTC.
The Notice does not address
other significant aspects of the U.S. federal income tax treatment of LTC, including: (i) whether LTC are properly treated as "commodities"
for U.S. federal income tax purposes; (ii) whether LTC are properly treated as "collectibles" for U.S. federal income tax
purposes; (iii) the proper method of determining a holder's holding period and tax basis for LTC acquired at different times or
at varying prices; and (iv) whether and how a holder of LTC acquired at different times or at varying prices may designate, for U.S. federal
income tax purposes, which of the LTC are transferred in a subsequent sale, exchange or other disposition. In 2019, the IRS issued a FAQ
that addressed some but not all of these issues, but the IRS has not confirmed the answers provided in the FAQ in a manner upon which
taxpayers may rely.
Prospective investors are
urged to consult their tax advisers regarding the substantial uncertainty regarding the tax consequences of an investment in LTC.
Tax Consequences to U.S. Holders
As used herein, the term "U.S.
Holder" means a beneficial owner of a Share for U.S. federal income tax purposes that is:
●
an individual who is a citizen or resident of the United States for U.S. federal income tax purposes;
●
a corporation, or other entity treated as a corporation for U.S. federal income tax purposes, created or organized in or under the laws of the United States or of any political subdivision thereof; or
●
an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source.
For U.S. federal income tax
purposes, each U.S. Holder will be treated as the owner of an undivided interest in the LTC held in the Trust and will be treated as directly
realizing its
pro rata
share of the Trust's income, gains, losses and deductions. When a U.S. Holder purchases Shares for
cash, the U.S. Holder's initial tax basis in its
pro rata
share of the LTC held in the Trust will be equal to the amount
paid for the Shares.
This discussion assumes that each U.S. Holder will acquire all of its Shares for cash on the same date and at
the same price per Share. U.S. Holders that acquire, or contemplate acquiring, multiple lots of Shares at different times or prices are
urged to consult their tax advisers regarding their tax bases and holding periods in their
pro rata
shares of the LTC held in the
Trust.
108
When the Trust transfers LTC
to the Sponsor as payment of the Sponsor's Fee, or sells LTC to fund payment of any Additional Trust Expenses or a redemption, each
U.S. Holder will be treated as having sold its
pro rata
share of those LTC for their fair market value at that time (which, in
the case of LTC sold by the Trust, generally will be equal to the cash proceeds received by the Trust in respect thereof). As a result,
each U.S. Holder will recognize gain or loss in an amount equal to the difference between (i) the fair market value of the U.S. Holder's
pro rata
share of the LTC that were transferred and (ii) the U.S. Holder's tax basis for its
pro rata
share of the
LTC that were transferred, subject to some specialized allocation rules for widely held fixed investment trusts ("WHFITs").
For some purposes, the WHFIT rules generally allocate Trust items based on distributions. For some purposes, redemptions are treated as
distributions and may result in gain recognized by the Trust to generate proceeds for the redemption being disproportionately allocated
to the Shareholder making the redemption. The application of the WHFIT rules to a trust holding LTC is uncertain. Assuming that LTC are
not treated as currency for U.S. federal income tax purposes, any such gain or loss will generally be short-term capital gain or loss
if the U.S. Holder has held its Shares for one year or less and long-term capital gain or loss if the U.S. Holder has held its Shares
for more than one year. The deductibility of capital losses may be subject to significant limitations. The Shareholder's tax basis
and holding period for the Shareholder's
pro rata
share of the LTC held in the Trust will be based on the amount and cash
contributed and the time the Trust purchased the LTC with the cash. A U.S. Holder's tax basis in its
pro rata
share of any
LTC transferred by the Trust generally will be determined by multiplying the tax basis of the U.S. Holder's
pro rata
share
of all of the LTC held in the Trust immediately prior to the transfer by a fraction the numerator of which is the amount of LTC transferred
and the denominator of which is the total amount of LTC held in the Trust immediately prior to the transfer. Immediately after the transfer,
the U.S. Holder's tax basis in its
pro rata
share of the LTC remaining in the Trust will be equal to the tax basis in its
pro rata
share of the LTC held in the Trust immediately prior to the transfer, less the portion of that tax basis allocable to
its
pro rata
share of the LTC transferred.
U.S. Holders may deduct their
respective
pro rata
shares of the expenses incurred by the Trust to the same extent as if the expenses were directly incurred by
the U.S. Holders. U.S. Holders'
pro rata
shares of the expenses incurred by the Trust will be treated as "miscellaneous
itemized deductions" for U.S. federal income tax purposes. If a U.S. Holder is an individual, trust or estate, the U.S. Holder's
share of these expenses will be deductible for regular U.S. federal income tax purposes only to the extent that the U.S. Holder's
share of the expenses, when combined with other "miscellaneous itemized deductions," exceeds 2% of the U.S. Holder's
adjusted gross income for the particular year, will not be deductible for U.S. federal alternative minimum tax purposes and will be subject
to certain other limitations on deductibility.
On a sale or other disposition
of Shares, a U.S. Holder will be treated as having sold the LTC underlying such Shares. Accordingly, the Shareholder generally will recognize
gain or loss in an amount equal to the difference between (i) the amount realized on the sale of the Shares and (ii) the portion of the
U.S. Holder's tax basis in its
pro rata
share of the LTC held in the Trust that is attributable to the Shares disposed of.
The Shareholder's tax basis and holding period for the Shareholder's
pro rata
share of the LTC held in the Trust will
be based on the amount and cash contributed and the time the Trust purchased the LTC with the cash. Such tax basis generally will be determined
by multiplying the tax basis of the U.S. Holder's
pro rata
share of all of the LTC held by the Trust immediately prior to
such sale or other disposition by a fraction the numerator of which is the number of Shares disposed of and the denominator of which is
the total number of Shares held by such U.S. Holder immediately prior to such sale or other disposition. Assuming that LTC are not treated
as currency for U.S. federal income tax purposes, that gain or loss will generally be short-term capital gain or loss if the U.S. Holder
has held its Shares for one year or less and long-term capital gain or loss if the U.S. Holder has held its Shares for more than one year.
After any sale (or other disposition)
of fewer than all of a U.S. Holder's Shares, the U.S. Holder's tax basis in its
pro rata
share of the LTC held in the
Trust immediately after the sale (or other disposition) generally will equal the tax basis in its
pro rata
share of the total amount
of the LTC held in the Trust immediately prior to the sale, less the portion of that tax basis that is taken into account in determining
the amount of gain or loss recognized by the U.S. Holder upon the sale (or other disposition) (or, in the case of a redemption, which
is treated as the basis of the LTC received by the Shareholder in the redemption).
Any brokerage or other transaction
fee incurred by a U.S. Holder in purchasing Shares will be added to the U.S. Holder's tax basis in the underlying assets of the
Trust. Similarly, any brokerage fee or other transaction fee incurred by a U.S. Holder in selling Shares will reduce the amount realized
by the U.S. Holder with respect to the sale.
Tax Consequences to Non-U.S. Holders
As used herein, the term "non-U.S.
Holder" means a beneficial owner of a Share for U.S. federal income tax purposes that is, for such purposes:
●
a nonresident alien individual;
●
a foreign corporation; or
●
a foreign estate or trust.
The term "non-U.S. Holder"
does not include (i) nonresident alien individuals present in the United States for 183 days or more in a taxable year, (ii) former U.S.
citizens and certain expatriated entities or (iii) persons whose Shares are effectively connected with the conduct of a trade or business
in the United States. Prospective investors described in the preceding sentence should consult their tax advisers regarding the U.S. federal
income tax consequences of owning Shares.
The Trust does not expect
to generate taxable income other than gain (if any) that will be recognized on the transfer of LTC in payment of the Sponsor's Fee
and the sale of LTC in connection with the payment of any Additional Trust Expenses. A non-U.S. Holder generally will not be subject to
U.S. federal income or withholding tax with respect to any such gain or with respect to any gain the non-U.S. Holder recognizes upon a
sale of Shares. However, if the income from the trust is effectively connected to a U.S. trade or business or, in the case of an individual,
the individual is in the United States for more than 180 days, the gains may be subject to U.S. tax.
109
U.S. Information Reporting and Backup Withholding
The Trust or the appropriate
broker will file certain information returns with the IRS and provide holders of Shares with information regarding their shares of the
Trust's annual income (if any) and expenses in accordance with applicable Treasury regulations.
A U.S. Holder may be subject
to backup withholding in certain circumstances if it fails to provide its taxpayer identification number or to comply with certain certification
procedures. In order to avoid the information reporting and backup withholding requirements, a non-U.S. Holder may have to comply with
certification procedures to establish that it is not a U.S. person. The amount of any backup withholding will be allowed as a credit against
the holder's U.S. federal income tax liability and may entitle the holder to a refund, provided that the required information is
furnished to the IRS.
ERISA AND RELATED
CONSIDERATIONS
The Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), and/or Code section 4975 impose certain requirements on employee benefit plans
and certain other plans and arrangements, including individual retirement accounts and annuities, Keogh plans, and certain collective
investment funds or insurance company general or separate accounts in which such plans or arrangements are invested, that are subject
to ERISA and/or the Code (collectively, "Plans"), and on persons who are fiduciaries with respect to the investment of assets
treated as "plan assets" of a Plan. Government plans and some church plans are not subject to the fiduciary responsibility
provisions of ERISA or the provisions of section 4975 of the Code but may be subject to substantially similar rules under state or other
federal law.
In contemplating an investment
of a portion of Plan assets in Shares, the Plan fiduciary responsible for making such investment should carefully consider, taking into
account the facts and circumstances of the Plan, the "Risk Factors" discussed above and whether such investment is consistent
with its fiduciary responsibilities, including, but not limited to (1) whether the fiduciary has the authority to make the investment
under the appropriate governing plan instrument, (2) whether the investment would constitute a direct or indirect non-exempt prohibited
transaction with a party in interest, (3) the Plan's funding objectives, and (4) whether under the general fiduciary standards of
investment prudence and diversification such investment is appropriate for the Plan, taking into account the overall investment policy
of the Plan, the composition of the Plan's investment portfolio and the Plan's need for sufficient liquidity to pay benefits
when due.
It is anticipated that the
Shares will constitute "publicly-held offered securities" as defined in the Department of Labor Regulations § 2510.3-101(b)(2).
Accordingly, Shares purchased by a Plan, and not the Plan's interest in the underlying LTC held in the Trust represented by the
Shares, should be treated as assets of the Plan, for purposes of applying the "fiduciary responsibility" and "prohibited
transaction" rules of ERISA and the Code.
Investment by Certain Retirement Plans
Individual retirement accounts
(IRAs) and participant-directed accounts under tax-qualified retirement plans are limited in the types of investments they may make under
the Code. Potential purchasers of Shares that are IRAs or participant-directed accounts under a Code section 401(a) plan should consult
with their own tax advisers as to the consequences of a purchase of Shares.
SEED CAPITAL
INVESTOR
[On ____, 202_, ____ (the
"Seed Capital Investor"), an affiliate of the Sponsor, purchased ____ (__) Share at a per-Share price of $___ (the "Seed
Share"). Delivery of the Seed Share was made on ____, 202_. Total proceeds to the Trust from the sale of the Seed Share were $___. On
____, 202_, the Seed Share was redeemed for cash and the Seed Capital Investor purchased ____ Shares at a per-Share price of $____ (the
"Seed Baskets"). Total proceeds to the Trust from the sale of the Seed Baskets were $____. On ____, 202_, the Trust purchased
____ LTC with the proceeds of the Seed Baskets. As of the date of the Prospectus, these ____Shares represent all of the outstanding Shares. The
Seed Capital Investor will act as a statutory underwriter in connection with the Seed Baskets. See "Plan of Distribution"
for additional information. The Seed Capital Investor may offer all of the Shares comprising the Seed Share and the Seed Baskets to the
public pursuant to this Prospectus.
The Seed Capital Investor
will not receive from the Trust, the Sponsor or any of their affiliates any fee or other compensation in connection with the sale of the
Seed Baskets. The Seed Capital Investor will be acting as a statutory underwriter with respect to the Seed Baskets.
The Seed Capital Investor
will not act as an Authorized Participant with respect to the Seed Baskets, and its activities with respect to the Seed Baskets will be
distinct from those of an Authorized Participant. Unlike most Authorized Participants, the Seed Capital Investor is not in the business
of purchasing and selling securities for its own account or the accounts of others. The Seed Capital Investor will not act as an Authorized
Participant to purchase (or redeem) Baskets in the future.]
110
PLAN OF DISTRIBUTION
In addition to, and independent
of the initial purchase by the Seed Capital Investor (described above), the Trust issues Shares in Baskets only to Authorized Participants
in exchange for deposits of cash on a continuous basis. Authorized Participants will not directly or indirectly purchase, hold, deliver,
or receive LTC as part of the creation or redemption process or otherwise direct the Trust or a third party with respect to purchasing,
holding, delivering, or receiving LTC as part of the creation or redemption process. The Trust does not issue fractions of a Basket. Because
new Shares can be created and issued on an ongoing basis, at any point during the life of the Trust, a "distribution," as
such term is used in the Securities Act, will be occurring. The Seed Capital Investor will be deemed a statutory underwriter with respect
to the Seed Baskets. Authorized Participants, other broker-dealers, and other persons are cautioned that some of their activities will
result in their being deemed participants in a distribution in a manner that would render them statutory underwriters and subject them
to the prospectus delivery and liability provisions of the Securities Act. For example, an Authorized Participant, other broker-dealer
firm or its client will be deemed a statutory underwriter if it purchases a Basket from the Trust, breaks the Basket down into its constituent
Shares and sells the Shares directly to its customers, or if it chooses to couple the creation of a new Basket with an active selling
effort involving solicitation of secondary-market demand for the Shares. A determination of whether a particular market participant is
an underwriter must take into account all the facts and circumstances pertaining to the activities of the broker-dealer or its client
in the particular case, and the examples mentioned above should not be considered a complete description of all the activities that could
lead to designation as an underwriter and subject them to the prospectus delivery and liability provisions of the Securities Act.
Investors that purchase shares
through a brokerage account (whether commission-based or fee-based) may pay commissions or fees charged by the brokerage account.
Dealers that are not "underwriters"
but are participating in a distribution (as contrasted to ordinary secondary trading transactions), and thus dealing with Shares that
are part of an "unsold allotment" within the meaning of Section 4(3)(C) of the Securities Act, would be unable to take advantage
of the prospectus delivery exemption provided by Section 4(3) of the Securities Act.
The Sponsor intends to qualify
the Shares in states selected by the Sponsor and that sales be made through broker-dealers who are members of FINRA. Investors intending
to create or redeem Baskets through Authorized Participants in transactions not involving a broker-dealer registered in such investor's
state of domicile or residence should consult their legal adviser regarding applicable broker-dealer or securities regulatory requirements
under the state securities laws prior to such creation or redemption.
The offering of Baskets is
being made in compliance with Conduct Rule 2310 of FINRA. Authorized Participants will not receive from the Trust or the Sponsor any compensation
in connection with an offering or reoffering of the Shares. Accordingly, there is, and will be, no payment of underwriting compensation
in connection with any such offering of Shares in excess of 10% of the gross proceeds of the offering.
Pursuant to a Marketing Agent
Agreement (the "Marketing Agent Agreement") entered into between the Sponsor and Paralel Distributors LLC (the "Marketing
Agent"), the Marketing Agent will be paid an annual fee by the Sponsor. In addition, the Sponsor will pay certain out-of-pocket
fees and expenses of the Marketing Agent incurred in connection with its assistance in the marketing of the Trust and its Shares.
Under the Marketing Agent
Agreement, the Marketing Agent will provide the following services to the Sponsor:
●
at the request of the Trust, the Marketing Agent shall assist the Trust with facilitating Authorized Participant Agreements between and among Authorized Participants, the Trust, and the Transfer Agent, for the creation and redemption of Baskets of the Trust;
●
maintain copies of confirmations of Basket creation and redemption order acceptances and produce such copies upon reasonable request from the Trust or Sponsor;
●
make available copies of the prospectus to Authorized Participants who have purchased Baskets in accordance with the Authorized Participant Agreements;
●
maintain telephonic, electronic mail and/or access to direct computer communications links with the Transfer Agent;
●
review and approve, prior to use, all Trust marketing materials;
●
ensure that all direct requests by Authorized Participants for prospectuses are fulfilled;
111
●
work with the Transfer Agent to review and approve orders placed by Authorized Participants and transmitted to the Transfer Agent; and
●
register and oversee supervisory activities of a certain number of FINRA-licensed registered representatives.
The Marketing Agent will not
be liable for, and the Trust shall indemnify, defend and hold the Marketing Agent, its affiliates and each of their respective members,
managers, directors, officers, employees, representatives and any person who controls or previously controlled the Marketing Agent within
the meaning of Section 15 of the Securities Act (collectively, the "Marketing Agent Indemnitees"), free and harmless from
and against, any and all losses, claims, demands, liabilities, damages and expenses (including the costs of investigating or defending
any alleged losses, claims, demands, liabilities, damages or expenses and any reasonable counsel fees incurred in connection therewith)
that any Marketing Agent Indemnitee may incur arising out of or relating to (i) the Marketing Agent's provision of services under
the Marketing Agent Agreement; (ii) the Trust's breach of any of its obligations, representations, warranties or covenants contained
in the Marketing Agent Agreement; (iii) the Trust's failure to comply in all material respects with any applicable laws, rules or
regulations; (iv) any claim that the prospectus, registration statement, marketing literature and advertising materials or other information
filed or made public by the Trust (as from time to time amended) includes or included an untrue statement of a material fact or omits
or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading;
provided, however, that the Trust's obligation to indemnify any of the Marketing Agent Indemnitees shall not be deemed to cover
any such losses, as determined by a court of competent jurisdiction in a final decision on the merits, arising out of any untrue statement
or alleged untrue statement or omission or alleged omission made in the prospectus or any such advertising materials or marketing literature
or other information filed or made public by the Trust in reliance upon and in conformity with information provided by the Marketing Agent
to the Trust, in writing, for use in such prospectus or any such advertising materials or marketing literature. In no event shall anything
contained herein be so construed as to protect the Marketing Agent against any liability to the Trust for which the Marketing Agent would
otherwise be subject by reason of willful misfeasance, bad faith, reckless disregard or gross negligence in the performance of its duties
under the Marketing Agent Agreement.
Unless sooner terminated as
provided herein, the Marketing Agent Agreement shall continue in effect for two years from its effective date. Thereafter, if not terminated,
the Marketing Agent Agreement shall continue automatically in effect for successive one-year periods. Notwithstanding the foregoing, the
Marketing Agent Agreement may be terminated by any party at any time upon written notice to the other parties if (a) the Trust is terminated,
(b) any other party becomes insolvent or bankrupt or files a voluntary petition, or is subject to an involuntary petition, in bankruptcy
or attempts to or makes an assignment for the benefit of its creditors or consents to the appointment of a trustee or receiver or (c)
any other party willfully and materially breaches its obligations under the Marketing Agent Agreement and such breach has not been cured
to the reasonable satisfaction of the non-breaching party prior to the expiration of sixty (60) days after written notice by the non-breaching
party to the breach party of such breach.
The Shares are listed and
traded on Nasdaq under the symbol "____."
Selling Shareholders
The Sponsor or its affiliates,
or a fund or unit investment trust for which the Sponsor or an affiliate of the Sponsor serves as sponsor or investment advisor, may purchase
Shares of the Trust through a broker-dealer or other investors, including in secondary market transactions, and because the Sponsor and
its affiliates may be deemed affiliates of the Trust, the Shares are being registered to permit the resale of these Shares by affiliates
of the Trust from time to time after any such purchase. The Trust will not receive any of the proceeds from the resale of such Shares.
Selling shareholders (each,
a "Selling Shareholder"), including the Seed Capital Investor, may sell Shares owned by them directly or through broker-dealers,
in accordance with applicable law, on any national securities exchange on which the Shares may be listed or quoted at the time of sale,
through trading systems, in the OTC market or in transactions other than on these exchanges or systems at fixed prices, at prevailing
market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected
through brokerage transactions, privately negotiated trades, block sales, entry into options or other derivatives transactions or through
any other means authorized by applicable law. Selling Shareholders may redeem Shares held in Basket size through an Authorized Participant.
See "Conflicts of Interest."
112
LEGAL MATTERS
The validity of the Shares
will be passed upon for the Sponsor by Chapman and Cutler LLP. Chapman and Cutler LLP, as special tax counsel to the Trust, will also
render an opinion regarding the material U.S. federal income tax consequences of the ownership of Shares. Chapman and Cutler LLP will
render an opinion regarding the Trust's status under Delaware law.
EXPERTS
The financial statement as
of ________, included in this Prospectus has been so included in reliance on the report of ________, an independent registered public
accounting firm, given on the authority of said firm as experts in auditing and accounting.
SUMMARY OF
PROMOTIONAL AND SALES MATERIAL
The Trust expects to use the
following sales material it has prepared:
●
the Trust's website, https://coinshares.com/us/etf/____/
The materials described above
are not a part of this prospectus or the registration statement of which this prospectus is a part.
PRIVACY POLICY
The Trust and the Sponsor
may collect or have access to certain nonpublic personal information about current and former Shareholders. Nonpublic personal information
may include information received from Shareholders, such as a Shareholder's name, social security number and address, as well as
information received from brokerage firms about Shareholder holdings and transactions in Shares of the Trust.
The Trust and the Sponsor
do not disclose nonpublic personal information except as required by law or as described in their Privacy Policy. In general, the Trust
and the Sponsor restrict access to the nonpublic personal information they collect about Shareholders to those of their and their affiliates'
employees and service providers who need access to such information to provide products and services to Shareholders.
The Trust and the Sponsor
maintain safeguards that comply with federal law to protect Shareholders' nonpublic personal information. These safeguards are reasonably
designed to (1) ensure the security and confidentiality of Shareholders' records and information, (2) protect against any anticipated
threats or hazards to the security or integrity of Shareholders' records and information, and (3) protect against unauthorized access
to or use of Shareholders' records or information that could result in substantial harm or inconvenience to any Shareholder.
Third-party service providers
with whom the Trust and the Sponsor share nonpublic personal information about Shareholders must agree to follow appropriate standards
of security and confidentiality, which include safeguarding such nonpublic personal information physically, electronically and procedurally.
A copy of the Sponsor's
current Privacy Policy, which is applicable to the Trust, is provided to Shareholders annually and is also available at https://coinshares.com/privacy-policy.
WHERE YOU CAN
FIND MORE INFORMATION
The Sponsor has filed on behalf
of the Trust a registration statement on Form S-1 with the SEC under the Securities Act of 1933. This Prospectus does not contain all
of the information set forth in the registration statement (including the exhibits to the registration statement), parts of which have
been omitted in accordance with the rules and regulations of the SEC. For further information about the Trust or the Shares, please refer
to the registration statement, which is available online at www.sec.gov.
Information about the Trust
and the Shares can also be obtained from the Trust's website, which is https://coinshares.com/us/etf/____/ The Trust's website
address is only provided here as a convenience to you and the information contained on or connected to the website is not part of this
Prospectus or the registration statement of which this Prospectus is part. The Trust is subject to the informational requirements of the
Securities Exchange Act of 1934 and will file certain reports and other information with the SEC under the Securities Exchange Act of
1934.
The reports and other information
are available online at www.sec.gov.
113
PROSPECTUS
CoinShares Litecoin ETF
Shares of CoinShares Litecoin ETF
The date of this prospectus is [     ], 202_
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13.
Other Expenses of Issuance
and Distribution.
The Trust shall not
bear any expenses incurred in connection with the issuance and distribution of the securities being registered. These expenses shall be
paid by CoinShares Co., the sponsor of the Trust. Except for the Securities and Exchange Commission Registration Fee and Exchange Listing
Fee, all such expenses are estimated:
SEC registration fee (actual)
$
0
*
Listing fee (actual)
$
____
Auditor's fees and expenses
$
____
Legal fees and expenses
$
____
Printing expenses
$
____
Miscellaneous expenses
$
____
Total
$
____
*
An indeterminate number of the securities is being registered
as may from time to time be sold at indeterminate prices. In accordance with Rules 456(d) and 457(u), the Trust is deferring payment
of all of the additional registration fee and will pay the additional registration fee subsequently on an annual basis.
Item 14.
Indemnification of Directors
and Officers.
The Trust Agreement
will provide that the Trust shall indemnify, defend and hold harmless the Trustee (including in its individual capacity) and any of the
officers, directors, employees and agents of the Trustee (the
"Indemnified Persons"
) from and against any and all losses,
damages, liabilities, claims, actions, suits, costs, expenses, disbursements (including the reasonable fees and expenses of counsel and
fees and expenses incurred in connection with enforcement of its indemnification rights under the Trust Agreement), taxes and penalties
of any kind and nature whatsoever (collectively, "Expenses"), to the extent that such Expenses arise out of or are imposed
upon or asserted at any time against such Indemnified Persons with respect to the performance of the Trust Agreement, the creation, operation
or termination of the Trust or the transactions contemplated thereby;
provided
,
however
, that the Trust shall not be required
to indemnify any Indemnified Person for any Expenses which are a result of the willful misconduct, bad faith or gross negligence of an
Indemnified Person. If the Trust shall have insufficient assets or improperly refuses to pay an Indemnified Person within sixty (60) days
of a request for payment owed hereunder, the Sponsor shall, as secondary obligor, compensate or reimburse the Trustee or indemnify, defend
and hold harmless an Indemnified Person as if it were the primary obligor under the Trust Agreement;
provided
,
however
,
that the Sponsor shall not be required to indemnify any Indemnified Person for any Expenses which are a result of the willful misconduct,
bad faith or gross negligence of an Indemnified Person. To the fullest extent permitted by law and by the requirement for treatment of
the Trust as a grantor trust for tax purposes, Expenses to be incurred by an Indemnified Person shall, from time to time, be advanced
by, or on behalf of, the Sponsor prior to the final disposition of any matter upon receipt by the Sponsor of an undertaking by, or on
behalf of, such Indemnified Person to repay such amount if it shall be determined that the Indemnified Person is not entitled to be indemnified
under this Trust Agreement.
Item 15.
Recent Sales of Unregistered
Securities.
On ____, 202_, ____ (the "Seed
Capital Investor"), an affiliate of the Sponsor, purchased ____ (__) Share at a per-Share price of $___ (the "Seed Share").
Delivery of the Seed Share was made on ____, 202_. Total proceeds to the Trust from the sale of the Seed Share were $___. On ____,
202_, the Seed Share was redeemed for cash and the Seed Capital Investor purchased ____ Shares at a per-Share price of $____ (the "Seed
Baskets"). Total proceeds to the Trust from the sale of the Seed Baskets were $____. On ____, 202_, the Trust purchased ____
LTC with the proceeds of the Seed Baskets.
II-
1
Item 16.
Exhibits and Financial
Statement Schedules
(a) Exhibits.
Exhibit No.
Exhibit Description
3.1*
Trust Agreement
3.2*
Certificate of Trust
5.1**
Opinion of Chapman and Cutler LLP as to legality
8.1**
Opinion of Chapman and Cutler LLP as to tax matters
10.1**
Form of Initial Authorized Participant Agreement
10.2**
Distribution Agreement
10.3**
Custodial Services Agreement
10.4**
Administration Agreement
10.5**
Transfer Agency Agreement
10.6**
Sponsor Agreement
10.7**
Cash Custody Agreement (Custodian Agreement)
23.1**
Consent of Independent Registered Public Accounting Firm
23.2**
Consent of Chapman and Cutler LLP (included in Exhibits 5.1 and 8.1)
107*
Filing Fee Tables
*
Filed herewith
**
To be filed by amendment
(b) Financial Statement Schedules.
Not applicable.
Item 17.
Undertakings.
The undersigned registrant hereby
undertakes:
(1)
To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:
(i)
to include any prospectus required by section 10(a)(3) of the Securities Act of 1933; (ii) to reflect
in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities
offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range
may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration
Fee" table in the effective registration statement; and
(ii)
to include any material information with respect to the plan of distribution not previously disclosed
in the registration statement or any material change to such information in the registration statement.
II-
2
(2)
That, for the purpose of determining any liability under
the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered
which remain unsold at the termination of the offering.
(4)
That, for the purpose of determining liability under the
Securities Act of 1933 to any purchaser:
(i)
If the registrant is relying on Rule 430B:
(A)
each prospectus filed by the registrant pursuant to Rule
424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included
in the registration statement; and
(B)
each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration
statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing
the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration
statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of
sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any
person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating
to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus
that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration
statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such
effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration
statement or made in any such document immediately prior to such effective date; or
(ii)
If the registrant is subject to Rule 430C, each prospectus
filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying
on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration
statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement
or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into
the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of
sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part
of the registration statement or made in any such document immediately prior to such date of first use.
II-
3
(5)
That, for the purpose of determining liability of the registrant
under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:
The undersigned registrant undertakes
that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting
method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following
communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to
such purchaser:
(i)
any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required
to be filed pursuant to Rule 424;
(ii)
any free writing prospectus relating to the offering prepared
by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(iii)
the portion of any other free writing prospectus relating
to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned
registrant; and
(iv)
any other communication that is an offer in the offering
made by the undersigned registrant to the purchaser.
(6)
Insofar as indemnification for liabilities arising under
the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person
of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled
by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of such issue.
II-
4
SIGNATURES
Pursuant to the requirements
of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized in the City of New York, and the State of New York, on January 24, 2025.
COINSHARES LITECOIN ETF
CoinShares Co.,
as Sponsor of the Trust
By:
/s/ Jean Marie Mognetti
Name:
Jean-Marie Mognetti
Title:
Chief Executive Officer
Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities* and on the dates indicated.
Signature
Title
Date
/s/ Jean-Marie Mognetti
Chief Executive Officer
(Principal Executive Officer)
January 24, 2025
Jean-Marie Mognetti
/s/ Charles Butler
Portfolio Manager
Charles Butler
(Principal Financial Officer and
Principal Accounting Officer)
January 24, 2025
*
The registrant is a trust and the persons are signing in
their capacities as officers of CoinShares Co., the Sponsor of the registrant.
II-5