Grayscale Cardano ETF moves forward as NYSE Arca files a proposal with the SEC. If approved, it would offer investors regulated exposure to ADA.
Grayscale Cardano ETF Proposal Advances with NYSE Arca Filing
NYSE Arca has submitted a 19b-4 form to the U.S. Securities and Exchange Commission (SEC) seeking approval to list and trade shares of the Grayscale Cardano Trust (GADA), which would provide investors with regulated exposure to Cardano’s ADA cryptocurrency.
SEC Review Process Begins for First Cardano ETF
Filed on February 10, the proposal falls under NYSE Arca Rule 8.201-E for commodity-based trust shares. The Grayscale Cardano Trust would hold ADA tokens, with each share representing fractional ownership of the trust’s assets, minus expenses. The net asset value (NAV) would be calculated daily using an index price from regulated exchanges like Coinbase and Kraken.
Coinbase Custody would manage the fund’s asset security, while authorized participants would handle creations and redemptions through cash transactions.
Grayscale Expands ETF Offerings Beyond Bitcoin
Grayscale’s move follows its successful conversion of the Bitcoin Trust into an exchange-traded fund (ETF). While the SEC has approved ether-based ETFs, it has historically been cautious about approving crypto products beyond Bitcoin, citing concerns over market manipulation and custody risks.
Regulatory Outlook and Institutional Interest
The SEC has 45 days to approve, reject, or extend its review of the Grayscale Cardano Trust filing. If approved, this ETF would provide investors with a regulated option to gain exposure to ADA without directly holding the asset.
While regulatory challenges remain, the proposal signals increasing institutional interest in alternative crypto investment products.
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