Grayscale Investments has officially filed for a Cardano (ADA) exchange-traded fund (ETF) with NYSE Arca, marking a significant step toward institutional adoption of the asset.
Institutional Partners and Market Reaction
According to the filing, Coinbase Custody Trust Company would serve as the custodian for the ETF’s assets, while BNY Mellon Asset Servicing would act as its administrator. The Delaware Trust Company has been named as the trustee. The new ETF would allow institutional and retail investors to gain regulated exposure to ADA without directly purchasing or storing the cryptocurrency. It would also add credibility to Cardano as an investment asset and open the door for broader adoption in traditional finance.
Regulatory Hurdles and Market Landscape
So far, the SEC has only approved spot ETFs for Bitcoin and Ethereum. Other cryptocurrencies, including Solana and XRP, have faced delays due to regulatory uncertainty. The SEC previously classified ADA as a security in its 2023 lawsuits against Binance and Coinbase, which could pose additional challenges for approval. Despite these hurdles, interest in crypto ETFs continues to grow. Recent filings for XRP, Solana, Dogecoin, and Litecoin ETFs suggest that more assets could soon enter the regulated investment space.
Cardano Joins the ETF Race
Grayscale’s move follows a wave of crypto ETF applications in recent months. Among these are applications for spot ETFs for XRP by WisdomTree, Bitwise, 21Shares, and Canary Capital, and the launch of the Physical XRP ETP by WisdomTree in Europe. In early 2025, Virtune AB launched a Cardano ETP on Nasdaq Helsinki, and Tuttle Capital filed for a 2x leveraged ADA ETF. Grayscale is also working to convert its XRP Trust into an ETF.
The creation of a Cardano-based ETF is part of a broader trend toward the institutionalization of cryptocurrency investments. If approved, this move could support further adoption of Cardano in financial markets.
