Grayscale Pushes for Cardano ETF as SEC Evaluates

The Securities and Exchange Commission (SEC) has officially recognized the proposal from NYSE Arca to list and trade a spot exchange-traded fund (ETF) based on Cardano (ADA) on behalf of the crypto asset manager Grayscale. This recognition, which occurred on February 24, 2025, marks the beginning of the regulatory process during which the SEC will evaluate the proposal and make a decision on its approval or rejection.

The SEC takes a decisive step towards the Cardano ETF

The initial proposal from NYSE Arca, filed on February 10, 2025, aims to list and trade shares of the Grayscale Cardano Trust on the exchange. If approved, this product will allow investors to gain exposure to the price of Cardano without having to directly hold the crypto. The ETF will track the price of ADA based on an index that monitors prices daily on exchange platforms such as Coinbase, Crypto.com, Bitfinex, and Kraken.

It is important to note that the SEC’s recognition of the 19b-4 filing for the proposal does not constitute approval! Rather, it is the start of a regulatory review process that will determine whether the ETF meets the required standards to be on the market. Will it? In this proposed structure, investors will not directly hold Cardano, but shares of the trust, thus providing a more convenient and potentially more secure way to access this crypto.

Even more investment options on the market

This initiative is part of a series of similar filings from Grayscale, which has recently submitted proposals for spot ETFs based on other cryptos, including XRP and Dogecoin. These efforts reflect a growing interest in regulated investment products that offer exposure to digital assets.

The outcome of these proposals will depend on the thorough review by the SEC, which will evaluate various factors, including regulatory compliance and investor protection. If these ETFs come to fruition, they could expand investment options for institutional and retail players, while also contributing to broader adoption of Cardano in traditional portfolios.