- SEC begins review of Grayscale’s spot Cardano ETF filing.
- Grayscale seeks to list Cardano ETF on NYSE Arca exchange.
- Grayscale aims to expand crypto ETF offerings with Cardano.
Grayscale has filed for a spot Cardano ETF, and the U.S. Securities and Exchange Commission (SEC) has acknowledged the application. This development signals the start of the SEC’s review process for the Grayscale Cardano Trust. The approval would allow the ETF to be listed and traded on the New York Stock Exchange (NYSE) Arca.
Grayscale Cardano ETF
The Grayscale Cardano ETF aims to offer investors regulated exposure to Cardano (ADA). If approved, the ETF would provide investors with shares that represent fractional ownership in the Grayscale Cardano Trust. The ETF will track the price of Cardano through an index based on prices from various crypto exchanges, including Coinbase and Crypto.com.
Grayscale’s proposal to list the ETF follows a similar application filed by NYSE Arca on February 10. The exchange intends to list and trade the Grayscale Cardano Trust’s shares on its platform. Investors will not directly hold ADA but will own shares in the trust, which is designed to provide indirect exposure to Cardano.
Coinbase Custody Trust Company will act as the custodian for the proposed ETF while BNY Mellon Asset Servicing will manage the fund’s transfer and administration.
The index will be listed on crypto exchanges such Coinbase and Kraken due to their compliance with U.S. federal and state licensing requirements. Although Bitfinex does not hold any licenses in the U.S, it was included because it met the minimum liquidity requirement.
Grayscale’s decision to file for a Cardano-based ETF is part of its broader plan to expand its cryptocurrency ETF offerings. The firm has also filed ETFs for other major digital assets, such as Solana (SOL), XRP, and Litecoin (LTC).
Regulatory Shift
The SEC’s acknowledgment on February 24 begins the official review of Grayscale’s application. Although this is the first step in the approval process, it signals the SEC’s readiness to evaluate the proposal. The commission will now assess whether to approve or reject the listing of the ETF.
This move comes at a time when there is a shift in cryptocurrency regulations, following the appointment of new leadership at the SEC under acting chair Mark Uyeda.
Crypto ETF Trend
This filing is part of a broader trend of increasing ETF applications in the cryptocurrency space. Recently, Nasdaq also sought approval for an ETF linked to Hedera Network’s HBAR token. Multiple filings for crypto ETFs have been submitted to the SEC in recent weeks, with several applications covering different aspects of crypto investment, including staking and altcoins.
Grayscale’s Cardano ETF application represents a significant step for both the company and the broader cryptocurrency market. As the SEC evaluates these applications, the industry watches closely for signs of a more favorable regulatory environment. The outcome of this review could pave the way for more crypto assets to be traded through traditional financial channels.