Grayscale Investments has officially filed for a Cardano ETF on NYSE Arca, marking a significant step towards institutional acceptance.
Institutional Partners and Market Reaction
Coinbase Custody Trust Company will serve as custodian for the ETF’s assets, while BNY Mellon Asset Servicing will act as administrator. Delaware Trust Company is named as trustee. This ETF could attract both institutional and retail investors, providing regulated exposure to ADA and adding credibility as an investment asset.
Regulatory Hurdles and Market Landscape
So far, the SEC has only approved spot ETFs for Bitcoin and Ethereum. Other cryptocurrencies, such as Solana and XRP, have faced delays due to regulatory uncertainty. The SEC has previously classified ADA as a security in its lawsuits against Binance and Coinbase in 2023, which could pose additional challenges for approval.
Cardano Joins the Growing ETF Race
Grayscale’s move follows a wave of crypto ETF applications in recent months. Worth noting, Grayscale is also working to convert its XRP Trust into an ETF.
Grayscale's application for a Cardano ETF could mark the beginning of a new era for investors seeking broader institutional access to cryptocurrencies, paving the way for further adoption in the financial market.
