Key Points:
- The SEC has acknowledged Grayscale Cardano ETF filing with a review process that could conclude by August 2025.
- The proposed ETF will track ADA prices with Coinbase Custody as the custodian and BNY Mellon as the transfer agent.
The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s application for a spot Cardano (ADA) exchange-traded fund (ETF).
The Grayscale Cardano ETF, known as the Grayscale Cardano Trust (ADA), aims to offer investors regulated exposure to Cardano, a leading blockchain platform.
SEC Begins Review of Grayscale Cardano ETF Proposal
NYSE Arca, a subsidiary of the NYSE Group, submitted the initial filing on February 10, 2025, and later amended it on February 20, 2025. The Grayscale Cardano ETF, if approved, would trade under the ticker symbol GADA and be listed on NYSE Arca.
The SEC’s review process includes a public comment period of 21 to 30 days, followed by an evaluation of the proposal’s compliance with investor protection, market integrity, and fraud prevention regulations. A final decision must be reached within 180 days of the filing date, with the process expected to conclude by August 2025.
The Grayscale Cardano Trust is designed to reflect the value of its ADA holdings, using the CoinDesk Cardano Price Index (ADX) for pricing, minus fees and expenses. The trust will not actively manage its holdings or attempt to mitigate price fluctuations.
Coinbase Custody Trust Company has been designated as the custodian, employing advanced security measures, including geographically distributed private key storage and encryption techniques. BNY Mellon Asset Servicing will act as the transfer agent and administrator.
Regulatory Shifts Boost Crypto ETF Prospects
Grayscale’s latest filing is part of its broader strategy to expand its cryptocurrency ETF offerings. Alongside the Cardano ETF, the firm is also pursuing funds based on other digital assets, including Solana (SOL), XRP, and Litecoin (LTC). This wave of crypto ETF applications follows the inauguration of President Donald Trump, whose administration has taken a more crypto-friendly stance.
Recent dismissals of high-profile crypto cases, such as those involving Coinbase and Robinhood, further signal a regulatory shift that could pave the way for broader crypto ETF adoption.
In a related development, Canary Capital has filed for approval to list an ETF tied to the Hedera Network’s native token, HBAR. The evolving regulatory landscape, coupled with a shift in SEC leadership under acting chair Mark Uyeda, has led to a more accommodating approach toward cryptocurrency-based financial products.
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