Grayscale, an investment manager, has registered ETFs for Cardano and Hedera in Delaware, marking a step towards filing an S-1 with the SEC.
Registration of New ETFs
Grayscale has registered the Grayscale Cardano Trust ETF and Grayscale Hedera Trust ETF in Delaware. This registration follows the SEC's acknowledgment of the 19b-4 form for Grayscale’s spot Cardano ETF and Nasdaq’s form for the Hedera ETF earlier this year.
Institutional Growth Strategy
Grayscale’s trust structure enables investors to gain indirect exposure to crypto without the complexities of direct asset custody. Cardano, known for its research-driven proof-of-stake design, prioritizes scalability, security, and sustainability. Hedera’s hashgraph consensus offers high transaction throughput and low fees, making it attractive for enterprise use cases. Both are viewed as having long-term growth potential within the blockchain ecosystem.
Regulatory Challenges
However, regulatory challenges remain. The U.S. Securities and Exchange Commission (SEC) has been cautious about approving spot ETFs for altcoins, even after allowing Bitcoin spot ETFs. Any future conversion of these trusts into ETFs will depend on market conditions and ongoing regulatory discussions.
This initiative is part of a broader movement towards institutional adoption of crypto markets, as Grayscale actively works to bring digital assets into everyday finance.
