Grayscale Seeks SEC Nod for Spot Cardano ETF
Grayscale Pushes for Spot Cardano ETF in Latest SEC Filing
Grayscale Investments, a leading digital asset manager, has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to launch a spot Cardano exchange-traded fund (ETF). The move, submitted through NYSE Arca, aims to introduce Cardano (ADA) to the mainstream financial market and provide investors with an alternative to directly holding the asset.
The proposed rule change filing, submitted on February 10, seeks approval to list and trade shares of the Grayscale Cardano Trust. If approved, the spot Cardano ETF would allow investors to gain exposure to ADA without directly holding the asset, simplifying access to Cardano's price movements via traditional brokerage accounts.
The filing specifies that Coinbase Custody Trust Company would act as the custodian for the Cardano assets, ensuring secure storage of the holdings, while BNY Mellon Asset Servicing would serve as the fund's administrator. NYSE Arca emphasized the significance of launching a spot Cardano ETF, arguing that it would enhance competition among market participants, to the benefit of investors and the marketplace.
Grayscale's move also shows the increasing institutional interest in alternative cryptocurrencies beyond Bitcoin and Ethereum. With the growing ecosystem of layer-1 blockchains like Cardano and Solana, asset managers are looking to capitalize on the demand for diversified crypto investment vehicles.
This latest filing follows Grayscale's broader push to expand its suite of crypto ETFs. On February 6, the SEC acknowledged Grayscale's amended application to convert its Solana Trust into a spot Solana ETF, a move that has sparked significant anticipation within the industry. Additionally, on January 30, NYSE Arca filed a 19b-4 form to convert Grayscale's XRP trust into a spot ETF, showing the firm's continued efforts to broaden its crypto ETF offerings.
The increasing number of crypto ETF filings suggests that the industry is gearing up for another wave of mainstream adoption, as investors seek diversified exposure to Ethereum alternatives like Cardano and Solana.
However, regulatory hurdles remain a critical challenge. The SEC has historically taken a cautious approach toward approving crypto-based ETFs beyond Bitcoin. Industry experts believe that the growing institutional
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