Grayscale Proposes First U.S. Spot Cardano ETF

Crypto investment firm Grayscale has submitted a proposal to the Securities and Exchange Commission (SEC) for the first-ever spot Cardano (ADA) exchange-traded fund (ETF) to be listed on the New York Stock Exchange (NYSE). This move comes as the race for crypto ETFs intensifies and marks Grayscale's first standalone Cardano investment product.

Following the news of Grayscale's ETF filing, ADA, the ninth-largest cryptocurrency by market capitalization, has surged by approximately 15%. The NYSE Arca submitted the 19b-4 form to the SEC on February 10, proposing a rule change to list and trade shares of the new Grayscale Cardano Trust under the ticker "GADA".

If approved, Grayscale's Cardano ETF would be the first of its kind in the U.S., allowing investors to gain direct exposure to ADA. Coinbase Custody Trust Company would serve as the custodian, and BNY Mellon Asset Servicing would act as the administrator, according to the ETF filing.

The proposed rule change aims to promote just and equitable principles of trade and protect investors and the public interest, as there is a significant amount of ADA price and market information available on public websites and through professional and subscription services.

So far, only Bitcoin and Ether spot products have been approved for trading in the U.S. The SEC previously labeled ADA an unregistered security in its enforcement actions against leading exchanges. As investors await the regulatory decision on the ADA ETF, crypto enthusiasts hope that other altcoin ETFs, such as Dogecoin, XRP, Litecoin, and Solana ETFs, will be approved in the coming months.

The news of Grayscale's spot Cardano ETF filing has boosted the price of ADA, which has gained roughly 14.8% over the past 24 hours to trade at $0.8051 as of publication time. The rally has pushed its weekly gains to 15%, nearly recouping all losses from last week's pullback. However, the crypto is still down 74.4% from its September 2021 all-time high of $3.09.