Grayscale Files for Spot Cardano (ADA) ETF with NYSE

👤Jay Robinson ⏲️February 11, 2025

In an exciting development within the cryptocurrency landscape, the New York Stock Exchange (NYSE) Arca has proactively submitted a Form 19b-4 to the U.S. Securities and Exchange Commission (SEC). This filing aims to obtain approval for the listing and trading of Grayscale Spot Cardano ETF.

If approved, this would mark the first-ever spot Cardano (ADA) exchange-traded fund (ETF) in the U.S. The ETF, expected to trade under the “GADA” ticker, will provide investors with regulated exposure to ADA through traditional financial markets.

Structure and Function of the Cardano ETF

The Grayscale Cardano Trust is structured to hold ADA directly, allowing investors to gain exposure without dealing with cryptocurrency exchanges. Each share of the trust represents proportional ownership of its ADA holdings minus management fees.

The fund’s net asset value will be calculated daily based on data from regulated crypto exchanges, such as Coinbase and Kraken. Coinbase Custody Trust Company, LLC, is expected to serve as the custodian, while BNY Mellon will handle administrative duties.

Growing Interest in Crypto ETFs

The filing aligns with a broader trend of increased institutional interest in cryptocurrency ETFs.

Following the SEC’s approval of Bitcoin and Ethereum spot ETFs, Grayscale’s push for a spot Cardano ETF reflects the growing demand for diversified crypto investment options.

If approved, the ETF would allow investors to trade ADA exposure through stock market platforms, eliminating the need for direct digital asset custody.

Regulatory Challenges and Market Impact

The SEC now has 45 days to decide on the filing, with the option to extend its review period. However, regulatory challenges persist, as the SEC has previously classified Cardano as a security in certain instances.

Despite these hurdles, investors are optimistic about the potential of a spot Cardano ETF to enhance ADA adoption and liquidity.

Also read: What Memecoin ETF Approvals Mean for the Future of Crypto.

About Author

Jay Robinson

Jay Robinson is a crypto content analyst and writer with over two years of experience in the industry. With a deep understanding of the crypto market, DeFAI and extensive knowledge of various blockchain technologies, Jay delivers insightful and well-researched content. As an avid trader, Jay makes sure he stays ahead of market trends and breaking news, providing readers with timely and informative analysis. With a passion for the ever-evolving world of crypto, Jay’s expertise ensures engaging and valuable content for novice and experienced investors.