The United States Securities and Exchange Commission (SEC) has officially acknowledged NYSE Arca’s filing for a spot Cardano exchange-traded fund (ETF). This marks the beginning of the review process, where the SEC will determine whether to approve or reject the ETF proposal.
The proposal is for the listing and trading of shares of the Grayscale Cardano Trust under NYSE Arca Rule 8.201-E. Once the filing is published in the Federal Register, a 240-day review window will commence. This filing is the 60th crypto ETF filing this year, showcasing the growing interest in digital asset investment products.
If approved, the Grayscale Cardano Trust will provide investors with exposure to Cardano (ADA) without the need to directly hold the asset. Investors can instead purchase shares of the trust, with the price linked to an index tracking ADA’s value on major exchanges like Coinbase, Kraken, Crypto.com, and Bitfinex. Despite Bitfinex not holding US licenses, it was still included in the index due to meeting liquidity requirements.
The custody of the fund’s assets will be handled by Coinbase Custody Trust Company, while BNY Mellon will serve as the transfer agent and administrator. The approval of a Cardano ETF could potentially boost investor interest in ADA, as seen when Grayscale initially filed the 19b-4 form and ADA’s price surged by 11%.
While ADA’s price did not react positively to the latest SEC acknowledgement, the odds of the SEC approving a Cardano ETF in 2025 have increased by over 10% on Polymarket, currently standing at a 65% chance of approval. The crypto industry is optimistic about the SEC’s stance on digital asset investment products under the leadership of crypto-friendly officials.
This acknowledgment of the Grayscale Cardano ETF filing is part of a series of similar moves by the SEC in recent weeks. In February alone, the commission recognized multiple crypto ETF filings across various assets. This includes the acknowledgment of a 19b-4 filing from 21Shares via the Cboe BZX Exchange for an Ethereum ETF that offers staking rewards to US investors.
Filings for Litecoin (LTC) and XRP spot ETFs from CoinShares, as well as Grayscale’s proposals for spot XRP and Dogecoin ETFs, have also been officially acknowledged. Additionally, Grayscale revised its application for a Solana (SOL) spot ETF, which was acknowledged by the SEC earlier this month.
Overall, the SEC’s acknowledgment of these ETF filings signals a potential shift towards greater acceptance of digital asset investment products within the regulatory framework. Investors and industry stakeholders are eagerly awaiting the SEC’s decisions on these proposed ETFs, which could have significant implications for the crypto market.