SEC Acknowledges NYSE Arca’s Filing for Spot Cardano ETF

The United States Securities and Exchange Commission (SEC) has formally acknowledged NYSE Arca’s filing for a spot Cardano exchange-traded fund (ETF). The proposal, which was filed earlier this month, aims to list and trade shares of the Grayscale Cardano Trust under NYSE Arca Rule 8.201-E.

This acknowledgement marks the beginning of a 240-day review process, during which the SEC will decide whether to approve or reject the ETF. The review process is expected to commence once the filing is published in the Federal Register, which usually occurs within a few days of the SEC’s acknowledgement.

What the ETF Means for Investors

If approved, the Grayscale Cardano Trust will provide investors with exposure to Cardano (ADA) without requiring them to directly hold the asset. Instead, investors will be able to buy shares of the trust, with the price tied to an index tracking ADA’s value across major exchanges like Coinbase, Kraken, Crypto.com, and Bitfinex.

It’s worth noting that Bitfinex, which does not hold any US licenses, was still included in the index due to its meeting liquidity requirements. Coinbase Custody Trust Company will handle the safekeeping of the fund’s assets, while BNY Mellon will serve as the transfer agent and administrator.

Market Reaction and Approval Odds

Despite the positive development, ADA’s price has failed to react, with the altcoin down over 8% at the time of writing. In contrast, ADA’s price surged 11% when Grayscale initially filed the 19b-4 form.

However, the odds of the SEC approving a Cardano ETF in 2025 have risen by over 10% in the past day on Polymarket, currently reflecting a 65% chance of approval.

Crypto-Friendly Leadership and SEC Moves

The acknowledgement of Grayscale’s Cardano ETF filing is the latest in a series of similar moves by the SEC in recent weeks. With crypto-friendly leadership within the SEC, the industry is hopeful that the commission will be more open towards approving digital asset investment products.

Other notable SEC moves include the acknowledgement of 19b-4 filings from 21Shares, CoinShares, and Grayscale for various ETFs, including those for Litecoin (LTC), XRP, and Solana (SOL).

As the SEC continues to review these filings, investors can stay up-to-date with the latest news and developments on Global Crypto News.

Stay informed about the latest cryptocurrency news and trends on Global Crypto News.

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