SEC Acknowledges Cardano ETF Proposal: A Step Towards Mainstream Adoption

The U.S. Securities and Exchange Commission (SEC) has formally acknowledged a proposed rule change filing by NYSE Arca to list and trade shares of the Grayscale Cardano Trust (ADA). The regulatory review process is expected to conclude by August 2025.

NYSE Arca submitted the initial filing on February 10, 2025, followed by Amendment No. 2 on February 20, 2025, which superseded all previous versions. The proposal seeks to list the trust’s shares under the ticker symbol GADA.

The trust aims to reflect the value of its ADA holdings, using the CoinDesk Cardano Price Index (ADX) for price determination, minus fees and expenses. Net Asset Value calculations will occur daily at 4:00 p.m. New York time, based on price data aggregated from multiple trading platforms including Coinbase, Crypto.com, Bitfinex, and Kraken.

Coinbase Custody will secure the trust’s ADA holdings through multi-layer security measures, including geographically distributed private key storage in secure vaults and encryption techniques.

The SEC’s acknowledgment of the filing marks a significant step towards the potential listing of a Cardano-based ETF in the U.S. market. The proposed ETF, if approved, would provide investors with exposure to the Cardano blockchain and its native cryptocurrency, ADA, through a regulated and easily tradable security.

The Cardano blockchain has gained significant attention in the cryptocurrency community due to its unique consensus mechanism, Ouroboros, and its focus on scalability, sustainability, and security. The proposed ETF could further boost the adoption and awareness of the Cardano ecosystem among mainstream investors.

The SEC’s review process is expected to be thorough and comprehensive, as the commission evaluates the potential risks and benefits of approving the proposed ETF. The final decision is anticipated by August 2025, providing ample time for investors and market participants to assess the potential impact of the listing on the Cardano ecosystem and the broader cryptocurrency market.