Today, Grayscale filed paperwork with the New York Stock Exchange (NYSE) for a spot Cardano ETF, the first-ever ADA-based product that could hit US markets. The filing lands as Grayscale continues expanding its crypto offerings, with regulatory approvals on its radar thanks to president Donald Trump’s crypto-friendly administration.
According to NYSE Arca, the proposed rule change would allow ADA to trade like a typical exchange-traded product, which it claims would “enhance competition” and benefit investors by opening up a new layer of market activity. The filing said:
“The Exchange notes that the proposed rule change will facilitate the listing and trading of an additional type of exchange-traded product, and the first such product based on ADA, which will enhance competition among market participants, to the benefit of investors and the marketplace.”
The ETF’s filing of course included a 19b-4 form, which is essential for any crypto ETF application. Once the US Securities and Exchange Commission (SEC) acknowledges it, the proposal will be published in the Federal Register, which then kicks off the formal approval process.
The SEC filing also revealed that Grayscale’s Cardano Trust won’t be actively managed. There’s no team of analysts trying to outperform ADA’s price or hedge risks. The trust is designed to simply track ADA’s value, minus expenses, according to the trust’s sponsors.
Moreover, the trust isn’t registered under the Investment Company Act, which means it operates outside typical mutual fund regulations. NYSE Acra said the goal is to replicate ADA’s performance through an index price while giving investors a cost-effective alternative to directly owning the asset.
The NAV per share is determined by dividing the NAV by the number of shares in circulation. The trust agreement details how ADA valuations are conducted, for the sake of price accuracy.
XRP, Solana, Litecoin, and now Cardano
Just last week, on February 8, Grayscale submitted its application to convert its XRP Trust into an ETF, though it isn’t alone. On February 7, Cboe submitted four 19b-4 filings to the SEC on behalf of WisdomTree, Bitwise, 21Shares, and Canary Capital—all wanting spot XRP ETFs approved.
Meanwhile, Swedish asset manager Virtune AB entered the ADA game when it launched a Cardano exchange-traded product (ETP) on Nasdaq Helsinki on February 6.
In late January, Tuttle Capital followed up with its own proposal—a 2x leveraged Cardano ETF designed to amplify ADA’s daily price swings. Grayscale, of course, already has Bitcoin and Ether ETFs trading on the US stock market. Grayscale has applied for DOGE, Solana, and Litecoin ETFs too.
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