Recent reports indicate that NYSE Arca has filed a 19b-4 application with the US SEC for a Cardano (ADA) ETF. This marks the first such application in the US.
Cardano ETF Filing Details
According to a post by Eric Balchunas on X, while this is the first application for a Cardano ETF in the US, it is also the 60th crypto ETF filed this year so far. NYSE Arca, a subsidiary of the New York Stock Exchange, filed the application amidst multiple efforts to launch new crypto ETFs in the country. According to the official filing, the custodian will be Coinbase Custody Trust Company, LLC, and the administration will be handled by BNY Mellon Asset Servicing.
The First ADA-Based Product
In its documents, NYSE Arca states that it proposes a rule change to facilitate the listing and trading of a new type of ETP, and the first such product based on ADA, which is expected to enhance competition among market participants to the benefit of investors and the marketplace. The 19b-4 form filed with the SEC is the second part of a two-step process for proposing a spot crypto ETF to the commission. Once the SEC acknowledges the filing, it will be published in the Federal Register, initiating the approval process.
Context and Additional Details
Notably, under the new Trump administration in the US, multiple efforts have been made to launch various new ETFs. Recently, the US SEC acknowledged Grayscale's Solana ETF 19b-4 filing, with potential approval later this year.
The application for the first US Cardano-based ETF by NYSE Arca is a significant step in the evolution of crypto funds, indicating the growing potential of the crypto market in aligning with investment tools.
