The U.S. Securities and Exchange Commission (SEC) has officially acknowledged NYSE Arca’s filing for a spot Cardano (ADA) exchange-traded fund (ETF), signaling the start of the regulatory review process. If approved, the Grayscale Cardano Trust would allow investors to gain exposure to Cardano (ADA) without directly holding the asset.
SEC Begins 240-Day Review Window
According to a Feb. 24 notice, the SEC has formally accepted the proposal to list and trade shares of the Grayscale Cardano Trust under NYSE Arca Rule 8.201-E.
This acknowledgment kicks off a 240-day review period, beginning once the filing is published in the Federal Register, which typically happens within days of SEC acknowledgment. During this time, the SEC will evaluate the proposal and decide whether to approve or reject the ETF.
How the Grayscale Cardano ETF Works
If approved, the ETF would:
- Trade on NYSE Arca, similar to existing crypto ETFs.
- Allow investors to buy shares of the trust, which would track ADA’s value across major exchanges like Coinbase, Kraken, Crypto.com, and Bitfinex.
- Use Coinbase Custody Trust Company as the custodian for the fund’s assets.
- Be managed by BNY Mellon, serving as the transfer agent and administrator.
Interestingly, Bitfinex, which lacks U.S. licenses, is included in the ETF’s index due to meeting liquidity requirements.
Market Reaction and Approval Odds
Despite the regulatory milestone, ADA has not reacted positively to the news, dropping over 8% at press time. This is in contrast to its 11% jump when Grayscale initially filed the 19b-4 form earlier this month.
Meanwhile, Polymarket odds of SEC approval for a Cardano ETF in 2025 have risen by over 10%, now reflecting a 65% chance of approval.
A Wave of Crypto ETF Filings in 2025
The SEC’s acknowledgment of Grayscale’s Cardano ETF filing is the latest in a series of crypto ETF proposals under review.
- The SEC recently acknowledged a 19b-4 filing from 21Shares, aiming to allow Ethereum (ETH) staking within its ETF, which would be the first U.S. Ethereum ETF offering staking rewards.
- CoinShares’ filings for Litecoin (LTC) and XRP spot ETFs have also been acknowledged.
- Grayscale’s proposals for XRP and Dogecoin (DOGE) ETFs are under review.
- The SEC recognized Grayscale’s Solana (SOL) ETF application on Feb. 6.
What’s Next?
With the crypto industry hopeful for increased regulatory openness, the SEC’s acknowledgment of multiple crypto ETF filings suggests a potential shift in policy under its current leadership.
While the approval timeline remains uncertain, the growing number of filings indicates strong demand for regulated crypto investment products. Investors will now wait to see whether Cardano’s ETF joins the list of approved digital asset funds in 2025.
