Grayscale’s move to launch a Cardano (ADA) spot exchange-traded fund (ETF) in the U.S. has now reached the U.S. Securities and Exchange Commission’s (SEC) review phase. Approval remains unclear, but the process is underway.
If approved, this ETF would be a first for Cardano in the U.S. and would enable investors to achieve crypto exposure without the headaches of direct ownership or storage of ADA.
The SEC stated it had received NYSE Arca’s proposal to list and trade shares of the Grayscale Cardano Trust on Feb. 24, 2025. That kicks off a 45-day period for the SEC to approve, deny, or extend its review. The prediction market Polymarket currently gives the odds of approval at 64%.
Amid a wave of crypto ETF approvals from the new SEC leadership, Cboe’s XRP ETF, Grayscale’s spot XRP and Dogecoin ETFs, and Nasdaq’s filing for options limits on BlackRock’s iShares Bitcoin Trust (IBIT) are making headlines. Meanwhile, NYSE Arca, a subsidiary of NYSE Group, submitted a proposal on Feb. 10 to list and trade shares of the Grayscale Cardano Trust.
The ETF would track ADA’s price using an index that pulls data from major exchanges like Coinbase, Crypto.com, Kraken, and Bitfinex. Bitfinex isn’t licensed in the U.S. but made the cut due to meeting liquidity requirements.
This wouldn’t be an actively managed ETF; Grayscale isn’t trying to beat the market. Instead, it’s designed to simply follow ADA’s price movements. Coinbase Custody Trust Company would handle security for the fund’s ADA holdings, while BNY Mellon would take care of fund administration.
Crypto ETFs are becoming more popular, and this is just one of many in the pipeline. The SEC has been going through several applications, including one from Nasdaq for a Hedera (HBAR) ETF. Since Bitcoin and Ethereum ETFs are already reality, many are wondering if Cardano and other altcoins will be next in line.
The SEC has 45 days to make a decision, approve, reject, or extend the review process. While nothing is guaranteed, the acknowledgment itself signals that Cardano is catching the attention of institutional investors. For now, the crypto world is waiting to see if this ETF will make it to market.
Also Read: Brazil’s SEC Approves World’s First Spot XRP ETF by Hashdex
