Grayscale Submits Application for Cardano ETF Listing on NYSE

Grayscale Investments has submitted an official application to the New York Stock Exchange (NYSE) for a spot Cardano (ADA) exchange-traded fund (ETF).

Grayscale Pursues SEC Green Light for Cardano ETF

On Monday, NYSE Arca, a branch of the NYSE, filed a 19b-4 form with the U.S. Securities and Exchange Commission (SEC), suggesting a rule modification to enable the listing and trading of the Grayscale Cardano Trust under the ticker "GADA."

The proposed ETF aims to give investors direct access to Cardano, which ranks as the ninth-largest cryptocurrency by market cap. Sponsored by both Grayscale Operating, LLC and Grayscale Investments Sponsors, LLC, the trust will directly hold ADA, with each share reflecting partial ownership of the asset.

Broader Range of Crypto ETF Options

This latest filing by Grayscale signifies a major step in broadening its ETF offerings, following recent proposals for ETFs based on Solana (SOL), XRP, and Litecoin (LTC). The firm has already achieved approval for a spot Bitcoin ETF, paving the way in the U.S. market. The current administration's seemingly more receptive stance on crypto investment products has galvanized companies to explore altcoin ETF opportunities.

In its submission, NYSE Arca mentioned, 

"The Exchange acknowledges that the proposed rule change will allow for the listing and trading of a new category of exchange-traded product, marking the first of its kind based on ADA. This will stimulate competition among market participants, benefiting both investors and the marketplace.” 

Alternative ADA ETF Introductions

This move comes as institutional interest in crypto investment products continues to grow. Although numerous crypto-related ETFs have been launched worldwide, Grayscale's proposed Cardano ETF would be the first U.S.-based spot ETF for ADA. Earlier in the year, Tuttle Capital Management applied for leveraged crypto ETFs, including one for ADA, while Swedish firm Virtune AB rolled out a Cardano exchange-traded product (ETP) on Nasdaq Helsinki for institutional investors.

Rising Institutional Focus on Cardano

Cardano has garnered attention for its emphasis on scalability, security, and sustainability, which are appealing to institutional investors seeking regulated digital asset exposure. The increasing demand for ADA has elevated it to one of the largest cryptocurrencies by market capitalization, with a valuation of roughly $25 billion at the time of reporting. Following Grayscale's filing announcement, ADA's price rose by 1.5%, reaching $0.71.

SEC's Evolving Perspective on ETFs

Grayscale's filing aligns with the SEC's ongoing review of other crypto ETF submissions. The agency recently invited public feedback on Grayscale's proposal for a Litecoin ETF, starting a 21-day comment period. Meanwhile, the SEC is also evaluating a proposal from Cboe BZX Exchange Inc. to permit in-kind redemptions and creations for the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF.

Analysts interpret the surge in altcoin ETF applications as an indication that regulatory views on digital assets are shifting.

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.