Grayscale Cardano Trust Seeks SEC Approval As ETF Race Intensifies

NYSE Arca has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to list and trade shares of Grayscale Cardano Trust.

Key Takeaways: – NYSE Arca has submitted a proposal to the SEC to list Grayscale Cardano Trust, which would be Grayscale’s first dedicated investment product for ADA. – Grayscale’s filing follows similar efforts for Solana and XRP ETFs, with multiple asset managers seeking approvals for various crypto investment products.

The filing, submitted on Feb. 10, seeks approval for the Grayscale Cardano Trust, which would provide investors with direct exposure to Cardano (ADA), the ninth-largest cryptocurrency by market capitalization.

If approved, this would mark Grayscale’s first dedicated investment product for Cardano. The trust would be sponsored by Grayscale Operating, LLC and Grayscale Investments Sponsors, LLC, with Coinbase Custody Trust Company acting as the custodian. BNY Mellon Asset Servicing has been designated as the administrator.

The move comes as Grayscale continues to push for additional crypto ETFs. On Feb. 6, the SEC acknowledged Grayscale’s amended request to convert its existing Solana trust into a spot Solana ETF.

Meanwhile, competition in the crypto ETF market is intensifying. On the same day, Cboe BZX Exchange submitted filings on behalf of Canary Capital, WisdomTree, 21Shares, and Bitwise to introduce the first spot XRP ETFs in the U.S.

Despite the growing interest in crypto ETFs, regulatory challenges remain. The SEC previously classified ADA as a security in its 2023 lawsuits against Binance and Coinbase, a designation that could complicate approval for a spot ADA ETF.

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