SEC Recognizes Grayscale Cardano ETF Filing
26 Feb, 2025 ● Crypto News
The U.S. Securities and Exchange Commission has acknowledged a proposal from NYSE Arca, submitted on behalf of crypto asset manager Grayscale, to list and trade a spot Cardano exchange-traded fund (ETF).
While this marks only the initial phase of the approval process, the SEC’s Feb. 24 acknowledgment of the Grayscale Cardano Trust means that the regulatory timeline for a final decision—either approval or rejection—will soon begin.
This acknowledgment comes amid a surge in crypto ETF proposals under the SEC’s new leadership, including Cboe’s XRP ETF, Grayscale’s spot XRP and Dogecoin ETFs, and Nasdaq’s application for position and exercise limits on options tied to BlackRock’s iShares Bitcoin Trust (IBIT).
NYSE Arca, a subsidiary of NYSE Group, originally filed its request with the SEC on Feb. 10, seeking approval to list and trade shares of the Grayscale Cardano Trust on the exchange.
The proposed ETF would track Cardano’s price through an index that aggregates daily pricing data from multiple crypto exchanges, including Coinbase, Crypto.com, Bitfinex, and Kraken.
The exchanges selected for the index were chosen based on their “material compliance with applicable U.S. federal and state licensing requirements.”
Investors in the ETF would not hold Cardano directly but instead own shares in the trust.
“An investment in the Shares is not a direct investment in ADA; the Shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to ADA,” the filing states.
Coinbase Custody Trust Company has been named as the proposed custodian for the ETF, while BNY Mellon Asset Servicing will serve as the transfer agent and administrator.
Although Bitfinex does not hold licenses or registrations in the U.S., it was included in the index because it met the “minimum liquidity requirement.”
Crypto-focused ETF applications have surged following the inauguration of U.S. President Donald Trump, who is perceived as more crypto-friendly.
On Feb. 24, Nasdaq filed for permission to list an ETF that would hold HBAR, the native token of the Hedera Network.
Additionally, on Feb. 19 and 20, the SEC acknowledged six cryptocurrency-related ETF filings in just two days.
These included applications related to staking, options trading, in-kind redemptions, and new types of altcoin funds.
Sources:
https://cointelegraph.com/news/sec-acknowledges-filing-grayscale-s-spot-cardano-etf
https://www.sec.gov/files/rules/sro/nysearca/2025/34-102475.pdf
