Grayscale Makes Historic Move by Filing for Cardano ETF on NYSE Arca
A groundbreaking moment in the world of cryptocurrency investment as Grayscale, in partnership with NYSE Arca, has officially filed under the Securities and Exchange Act of 1934 to launch a spot Cardano exchange-traded fund (ETF).
This filing marks a significant departure from previous endeavors by directly introducing an ETF for Cardano, rather than converting an existing fund. Grayscale's decision to venture into offering a standalone investment product for ADA signals a pivotal development in their range of investment opportunities.
The filing for the Cardano ETF, submitted on February 10 through the 19b-4 filing to the SEC, aims to provide investors with a regulated avenue to invest in Cardano. If granted approval, the shares will be traded under the ticker symbol “GADA.”
While the ETF does not constitute a direct investment in ADA, it is tailored to offer investors a cost-effective and accessible means to gain exposure to Cardano, as expressed in the filing statement.
This move by Grayscale represents the initiation of a US spot ETF for Cardano, following closely on the heels of Tuttle Capital Management's proposal for ten leveraged crypto ETFs that include an ADA fund.
In a testament to the significance of this event, Bloomberg's senior ETF analyst, Eric Balchunas, highlighted on social media that this filing was the first of its kind in the US and roughly the 60th crypto ETF filing made this year.
In addition to the Cardano ETF, Grayscale has also set its sights on converting existing trusts into spot ETFs for other cryptocurrencies like Solana (SOL), XRP (XRP), and Dogecoin (DOGE). However, regulatory hurdles stand in the way of these applications.
The SEC's previous classification of Cardano as a security in legal disputes involving major platforms like Binance and Coinbase, along with XRP and Solana, presents potential delays in obtaining approval for altcoin-based ETFs.
Despite these challenges, recent developments suggest a potential shift in regulatory attitudes towards cryptocurrency ETFs. The SEC's acknowledgment of the filing for the Grayscale Solana ETF has sparked optimism among analysts who foresee a favorable outlook for altcoin ETFs, including those for XRP and ADA.
Following the news of the filing, Cardano experienced a notable surge of 9.3% on the 24-hour chart, outperforming established cryptocurrencies like Bitcoin, Ethereum, and XRP in daily gains.
After enduring recent losses, with a 4.7% decline over the past week and a 26.3% dip in the last month, ADA's price stands at $0.75 at the time of writing. The future awaits to reveal the outcome for ADA amid these transformative shifts in the cryptocurrency investment landscape.