Michaela
NYSE Arca, a division of the New York Stock Exchange (NYSE) Group, has submitted a filing to list a spot Cardano (ADA) exchange-traded fund (ETF) on behalf of crypto asset manager Grayscale. This marks the first effort to introduce ADA into the U.S. spot ETF market.
On February 10, NYSE Arca submitted a proposed rule change to the U.S. Securities and Exchange Commission (SEC) seeking approval to list and trade shares of the Grayscale Cardano Trust. The initiative indicates Grayscale’s ongoing efforts to broaden institutional exposure to digital assets, extending beyond Bitcoin and Ethereum.
If approved, the offering would mark Grayscale’s first dedicated investment product focused solely on Cardano.
According to the filing, BNY Mellon Asset Servicing is designated as the administrator, while Coinbase Custody Trust Company would act as the custodian of the assets.
Following President Donald Trump’s election, a surge of asset managers has swiftly submitted applications for comparable crypto ETF products. This development aligns with a series of recent filings and amendments from Grayscale in response to the evolving regulatory landscape.
The SEC formally acknowledged Grayscale’s revised proposal on February 6, seeking to transform its existing Solana trust into a spot Solana ETF.
Bloomberg ETF analyst Eric Balchunas commented on the latest filing in an X post, noting that it marks approximately the 60th crypto ETF application submitted this year.
Following the announcement, ADA has experienced a nearly 15% surge, climbing to $0.79 at the time of writing, according to data from CryptoMarketCap.
The 19b-4 filing serves as a crucial step in the process of listing a new ETF on an exchange, functioning as a formal request for a rule change. However, even with approval, a spot ETF must also secure an effective S-1 registration statement before trading can commence.
In January 2024, Grayscale launched the Grayscale Bitcoin Miners ETF (MNRS) on NYSE Arca, providing investors with an alternative avenue to gain exposure to Bitcoin mining firms.
The fund is designed to track companies listed on the Indxx Bitcoin Miners Index, focusing on firms that derive the majority of their revenue from Bitcoin mining. It also includes businesses involved in related sectors such as mining hardware, software, services, and other associated ventures.
Read More
- Grayscale Struggles Amid $21 Billion Outflows; Investor Confidence Wanes
- Grayscale Investment’s Next Move: A Spot Solana ETF?
- Franklin Templeton Seeks SEC Approval for Crypto Index ETF
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
