Grayscale Proposes Cardano ETP, NYSE Arca Files Form 19b-4

Grayscale, a leading digital asset manager, has taken a significant step towards expanding its offerings by proposing the establishment of the Grayscale Cardano Trust. This move comes as NYSE Arca, a subsidiary of the New York Stock Exchange, has filed a Form 19b-4 on behalf of Grayscale, seeking approval for the first exchange-traded product (ETP) backed by Cardano's ADA token.

The proposed trust fund will be managed by Coinbase Custody Trust Company, LLC, a subsidiary of Coinbase, which will serve as the trustee. BNY Mellon Asset Servicing, a renowned global asset servicing provider, will handle the asset management responsibilities. This collaboration between these established financial institutions and a leading cryptocurrency exchange underscores the growing acceptance and integration of digital assets into traditional financial markets.

The filing submitted by NYSE Arca emphasizes the potential benefits of this proposed rule change. By facilitating the listing and trading of a new segment of ETPs, specifically the first product associated with Cardano, the initiative aims to foster increased competition among market participants. This, in turn, is expected to contribute to the overall health of the cryptocurrency market and ultimately benefit investors.

The Cardano blockchain, developed by Input Output Hong Kong (IOHK), has gained significant traction in the cryptocurrency community due to its innovative consensus mechanism, Ouroboros, and its focus on scalability, sustainability, and security. The proposed ETP will provide investors with an opportunity to gain exposure to Cardano without the need to directly hold or manage ADA tokens.

The filing of the Form 19b-4 is a crucial step in the process of launching the Grayscale Cardano Trust. However, it is important to note that the approval of the proposed rule change is subject to the review and approval of the Securities and Exchange Commission (SEC). Once approved, the ETP will be listed and traded on the NYSE Arca exchange, further cementing the growing influence of digital assets in the broader financial landscape.