Grayscale Bets on Cardano as Regulators Hold the Line

Grayscale Investments has submitted an S-1 filing with the U.S. Securities and Exchange Commission (SEC) for a Cardano (ADA) exchange-traded fund (ETF), marking a significant step in the regulatory approval process for the first-ever ADA-based ETF. This filing follows a prior 19b-4 submission, which the SEC acknowledged earlier in the year, and is seen as a precursor to a potential approval by the agency. The Cardanians, a prominent Cardano-focused community on X, highlighted the filing as a crucial development in the project’s roadmap, noting that it outlines how the ETF will function and operate in the market [1].

The proposed Grayscale Cardano Trust ETF will trade under the ticker symbol GADA on the NYSE Arca. The product is designed to track the price of ADA using the CoinDesk Cardano Index (ADX), with shares issued in blocks of 10,000. A key detail outlined in the filing is that the ETF will utilize Coinbase Custody for asset storage and management, a platform already trusted by major institutional investors in the crypto space [1]. Additionally, the structure may allow for ADA staking in the future, potentially offering investors exposure to yield-generating opportunities alongside price appreciation.

The timeline for SEC approval is expected to culminate in late October 2025, with October 26 being viewed as a potential decision date. The Cardano community has already begun tracking the countdown to this milestone, with high expectations for the outcome. Market participants, including crypto analysts and investors, are closely watching the development. According to current market sentiment tracked on prediction markets, the approval odds for the Cardano ETF stand at 87%, while Bloomberg analysts estimate the probability at 75% [1].

Cardano currently ranks as the 10th-largest cryptocurrency by market capitalization, valued at $29.78 billion, with each ADA token trading at approximately $0.833. The potential approval of a spot ETF could significantly increase institutional adoption of the asset, providing a familiar and regulated investment vehicle for professional investors and financial advisors. This could drive broader market confidence and liquidity for ADA, similar to the effects seen with previous major ETF approvals in the crypto sector.

Analysts suggest that the Grayscale ETF filing is a strategic move by the firm to capitalize on growing institutional interest in crypto assets, particularly as the regulatory environment continues to evolve. By aligning with established custodial and index providers, Grayscale aims to reduce perceived risks and demonstrate the robustness of its offering. The successful launch of the ADA ETF could also set a precedent for other altcoins seeking similar product structures, potentially broadening the range of crypto assets accessible to traditional investors.

Source: [1] Grayscale Submits S-1 Filing for Cardano ETF, ADA Community Reacts (https://u.today/grayscale-submits-s-1-filing-for-cardano-etf-ada-community-reacts)