Grayscale Investments, a leading digital asset management firm, has officially filed for the first-ever Cardano (ADA) exchange-traded fund (ETF). The ETF, if approved, would trade on the New York Stock Exchange (NYSE) under the ticker “GADA,” offering institutional and retail investors exposure to Cardano without the need for direct cryptocurrency storage.
Grayscale Files for Cardano ETF Amid Growing Crypto Adoption
On Monday, NYSE Arca, a subsidiary of the NYSE, submitted a 19b-4 filing to the U.S. Securities and Exchange Commission (SEC) for the approval of the Grayscale Cardano Trust. Unlike Grayscale’s previous ETF filings for Solana (SOL) and XRP, which sought to convert existing trusts into ETFs, this Cardano ETF would be a brand-new offering.
Grayscale has designated Coinbase Custody Trust Company, LLC as the custodian for ADA holdings, while BNY Mellon will oversee administrative and accounting responsibilities. If approved, the Cardano ETF would mark another significant step in bridging traditional finance with digital assets.
Why the Grayscale Cardano ETF Matters
Cardano is currently the ninth-largest cryptocurrency, with a market capitalization of approximately $25 billion. Despite its strong blockchain fundamentals, Cardano has not yet seen a dedicated ETF, unlike Bitcoin and Ethereum. A regulated Cardano ETF would provide mainstream investors with a secure and SEC-compliant way to gain exposure to ADA.
The growing push for crypto ETFs comes amid evolving SEC regulations and increased institutional interest in digital assets. With the approval of Bitcoin ETFs earlier this year, industry experts speculate that altcoins like ADA, SOL, and XRP could be next in line.
Regulatory Hurdles: Will the SEC Approve It?
While investor enthusiasm is high, regulatory concerns remain a key obstacle. The SEC has previously classified ADA as a security in its lawsuits against Binance and Coinbase. This classification has caused uncertainty in crypto ETF approvals, as regulatory scrutiny intensifies over altcoins.
Some analysts believe that Litecoin (LTC) has a higher chance of ETF approval due to its perceived regulatory clarity, while ADA, SOL, and XRP may face greater resistance. The SEC’s decision on the Grayscale Cardano ETF will likely set a precedent for future altcoin ETFs.
ADA Price Surges 15% Following ETF Announcement
Following the news of Grayscale’s ETF filing, Cardano (ADA) surged over 15% in 24 hours, reaching $0.815—a major recovery from recent lows near $0.50. Trading volume also skyrocketed by 51.02%, indicating heightened investor interest. ADA’s market cap climbed to $27.99 billion, signaling strong market confidence in its long-term prospects.
What’s Next for Crypto ETFs?
As the SEC continues to evaluate multiple crypto ETF applications, the next few months could be critical for the broader altcoin market. While the approval of a Cardano ETF remains uncertain, Grayscale’s move reflects the growing demand for regulated crypto investment vehicles.
If approved, the Cardano ETF would not only boost ADA’s mainstream adoption but also pave the way for additional altcoin-based ETFs in the future. Investors and analysts will closely monitor the SEC’s response, as its decision could shape the next phase of crypto’s integration into traditional finance.
Hey Grayscale, I used to work there!
What? WOW…Thanks for Leaving a comment