Grayscale has proposed a spot Cardano (ADA) ETF, which has been acknowledged by the SEC, marking the start of a regulatory process.
Key Features of the Cardano ETF Proposal
Grayscale's ETF will track Cardano's price using an index sourcing data from major crypto exchanges like Coinbase, Kraken, Bitfinex, and Crypto.com. The fund allows investors to buy and sell shares of the Grayscale Cardano Trust backed by ADA, with Coinbase Custody Trust Company as custodian and BNY Mellon Asset Servicing handling operations.
Review Process and Timeline
The SEC's review process is expected to last up to 180 days, with possible extensions. A public comment period will precede this, running between 21 and 30 days. A decision is expected by August 2025.
Expectations and Market Response
The acknowledgment of Grayscale's filing has increased approval odds to 67%. An approved ETF could increase institutional interest in Cardano. Despite a recent 10.93% decline in ADA's value, market sentiment remains positive.
Approval of Grayscale's proposal could facilitate institutional investment opportunities and drive increased demand for Cardano.
