Grayscale applies for SEC approval of the first US Cardano ETF
Grayscale has made a significant move in the U.S. ETF market by seeking approval from the SEC to introduce a spot Cardano ETF. This is the first such venture related to Cardano in the U.S., showing Grayscale’s interest in expanding beyond Bitcoin and Ethereum.
The NYSE Arca, a division of the NYSE Group, submitted a proposal to the SEC on February 10, aiming to list and trade shares of the Grayscale Cardano Trust. This trust would be the first product focusing solely on Cardano by Grayscale. BNY Mellon Asset Servicing is chosen as the administrator, with Coinbase Custody Trust Company as the custodian of the assets.
In response to the changing regulatory environment, Grayscale has been proactive in submitting applications for various crypto ETF products. Recently, they have sought approval to transform the Solana trust into a spot Solana ETF. This move aligns with other similar submissions from asset managers post the election of President Donald Trump.
The filing for the spot Cardano ETF marks a significant step in the process, serving as a formal request for a rule change. However, even if approved, the ETF would need to secure an effective S-1 registration statement before trading can begin. ADA has notably surged by almost 15% following the announcement.
In addition to the Cardano ETF, Grayscale launched the Grayscale Bitcoin Miners ETF in January 2024 on NYSE Arca. This ETF provides investors with exposure to Bitcoin mining firms by tracking companies listed on the Indxx Bitcoin Miners Index. It focuses on firms generating the majority of their revenue from Bitcoin mining activities, along with related sectors like mining hardware, software, and services.
Grayscale’s move into the ETF market signals their commitment to offering institutional investment products in the crypto space. The latest filing for a Cardano ETF represents a significant development for the U.S. market, with ADA experiencing a notable price surge in response. If approved, this ETF could provide investors with a new way to gain exposure to Cardano and diversify their digital asset portfolios.
