Grayscale Investments has officially filed an application with the New York Stock Exchange (NYSE) for a spot Cardano (ADA) exchange-traded fund (ETF).
Grayscale Seeks SEC Approval for Cardano ETF
NYSE Arca, a subsidiary of the NYSE, submitted a 19b-4 form to the U.S. Securities and Exchange Commission (SEC) on Monday, proposing a rule change to facilitate the listing and trading of the Grayscale Cardano Trust under the ticker symbol "GADA."
The ETF would provide investors with direct exposure to Cardano, currently the ninth-largest cryptocurrency by market capitalization. Sponsored by Grayscale Operating, LLC and Grayscale Investments Sponsors, LLC, the trust would hold ADA directly, with each share representing proportional ownership of the underlying asset.
Expanding Crypto ETF Offerings
Grayscale’s latest filing marks a significant expansion of its ETF portfolio, following recent applications for Solana (SOL), XRP, and Litecoin (LTC) ETFs. The company has previously secured approval for a spot Bitcoin ETF, breaking regulatory barriers in the U.S. market. The shifting stance of the SEC, which under the current administration appears more open to crypto-based investment products, has encouraged firms to pursue altcoin ETFs.
In its filing, NYSE Arca stated,
"The Exchange notes that the proposed rule change will facilitate the listing and trading of an additional type of exchange-traded product, and the first such product based on ADA, which will enhance competition among market participants, to the benefit of investors and the marketplace.”
Other ADA ETF Offerings
This development comes amid increasing institutional interest in cryptocurrency investment vehicles. While various crypto-related ETFs have emerged globally, Grayscale’s proposed Cardano ETF would be the first U.S. spot ETF for ADA. Earlier this year, Tuttle Capital Management filed for leveraged crypto ETFs, including one for ADA, while Swedish asset manager Virtune AB launched a Cardano exchange-traded product (ETP) on Nasdaq Helsinki, catering to institutional investors.
Institutional Interest in Cardano Grows
Cardano has gained recognition for its focus on scalability, security, and sustainability—attributes that appeal to institutional investors seeking regulated exposure to digital assets. The growing demand for ADA has positioned it as one of the largest cryptocurrencies by market capitalization, valued at approximately $25 billion at press time. Following the news of Grayscale’s filing, ADA’s price saw a 1.5% increase, reaching $0.71.
SEC Changing Stance Towards ETFs
Grayscale’s filing coincides with the SEC’s ongoing evaluation of other crypto ETF proposals. Recently, the agency sought public comments on Grayscale’s Litecoin ETF proposal, initiating a 21-day submission period. Additionally, the SEC is considering a proposal from Cboe BZX Exchange Inc. to allow in-kind redemptions and creations for the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF.
Market analysts view the increasing number of altcoin ETF filings as a sign that regulatory attitudes toward digital assets are evolving.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.