Grayscale Investments, a U.S.-based asset management company, has announced the creation of new exchange-traded funds (ETFs) for the cryptocurrencies Cardano (ADA) and Polkadot (DOT). These funds will allow investment in the cryptocurrencies without the need to buy or store them.
Information on New ETFs
Grayscale has filed with the U.S. Securities and Exchange Commission (SEC) for approval of the ETFs for Cardano and Polkadot on Friday. The Cardano ETF will be listed on the NYSE Arca stock exchange with the ticker GADA and will follow the CoinDesk Cardano Price Index. The Polkadot ETF will similarly be listed on Nasdaq with the ticker DOT and will track the CoinDesk DOT CCIXber Reference Rate.
SEC Approval Process
The SEC's ETF review process faces delays and inconsistencies. Grayscale aims to provide additional investment options beyond popular cryptocurrencies like Bitcoin and Ethereum.
Competition in the Crypto ETF Market
Other companies, such as VanEck and Bitwise, are also trying to launch similar altcoin ETFs. On August 23, VanEck filed its first JitoSOL Liquid Staking ETF, aimed at providing investors access to Solana’s liquid staking market. Similarly, on August 26, Bitwise submitted its filing for its first-ever Chainlink ETF, which would be the first U.S. ETF focused on the decentralized oracle network.
Grayscale's plans to launch ETFs for Cardano and Polkadot highlight the growing interest in altcoins and the company’s efforts to expand the range of investment products in the cryptocurrency market.
