Grayscale Files for Cardano ETF on NYSE Arca as Market Awaits SEC Decision

• Grayscale proposes Cardano ETF on NYSE Arca
• SEC evaluates first ADA spot ETF in the US
• Investors await decision on new crypto listing

NYSE Arca, a subsidiary of the NYSE Group, has filed an application with the U.S. Securities and Exchange Commission (SEC) to list and trade shares of Grayscale Cardano Trust, aiming to launch the first exchange-traded fund (ETF) Cardano (ADA) in the North American market. If approved, this will be Grayscale's first independent product dedicated exclusively to ADA, one of the most popular digital assets in the industry.

At the time of publication, Cardano’s price is quoted at $0,7418 with an increase of 8.8% in the last 24 hours.

The document was filed on February 10th and specifies that the Coinbase Custody Trust Company will be responsible for the custody of the assets, while BNY Mellon Asset Servicing will act as the fund’s administrator. According to the proposal, the ETF’s goal is to increase competition in the cryptocurrency exchange-traded products (ETPs) market.

“The proposed rule change will facilitate the listing and trading of an additional type of exchange-traded product, and the first of its kind based on ADA, which will increase competition among market participants, to the benefit of investors and the market,” NYSE Arca said in its filing with the SEC.

Grayscale Expands ETF Offerings

In recent months, Grayscale has been stepping up its applications to list spot ETFs of different cryptocurrencies. Earlier in February, the SEC acknowledged an application by the manager to convert its Solana Trust (SOL) into a spot ETF. Additionally, in late January, NYSE Arca submitted a similar application to transform the Grayscale XRP Trust in a spot ETF.

The move comes at a time of changing regulatory posture in the U.S. Since the election of President Donald Trump, several asset managers have filed new applications for crypto-based ETF products. On February 6, the Cboe BZX Exchange filed requests on behalf of four managers — Canary Capital, WisdomTree, 21Shares and Bitwise — to list the first spot ETFs of XRP in the United States.

Additionally, 21Shares, Bitwise, VanEck, and Canary Capital are in the running to launch Solana spot ETFs, following the Cboe BZX Exchange resubmit new applications at the end of January.

Impact on the cryptocurrency market

Cardano is currently the ninth-largest cryptocurrency by market cap and has been one of the most sought-after assets by institutional investors. If the ETF is approved, it will allow traditional investors to gain exposure to ADA without having to deal directly with crypto exchanges, which could further boost the adoption of the cryptocurrency in the financial market.

However, approval is not yet guaranteed. The SEC has already classified the ADA as a security in their lawsuits against Binance e Coinbase in 2023, which may bring additional challenges to the approval of this ETF.

Meanwhile, market analysts believe that the SEC may favor the approval of ETFs based on Litecoin (LTC) before proceeding with requests related to Cardano, Solana and XRP. However, the growing interest in these financial products reinforces the thesis that the cryptocurrency market is increasingly integrated into the traditional financial system.