Grayscale is actively pursuing the establishment of a Cardano ETF by submitting the necessary paperwork to the SEC while the crypto ETF market continues to expand.
Details of Grayscale's Filing
Grayscale has submitted an S-1 form for a Cardano (ADA) dedicated ETF, in addition to an already approved 19b-4 form. The new product is set to trade on NYSE Arca under the ticker GADA, with Coinbase Custody as the asset guardian. The price of ADA will be tracked through the CoinDesk Cardano Index (ADX).
Current Crypto ETF Market Situation
Currently, there are 96 crypto ETF applications being processed by the SEC, with most filed since April of this year. Grayscale is ramping up its efforts, focusing on Cardano and Polkadot as key components of its investment strategy.
Chances of Approval and Next Steps
According to Polymarket, the probability of approval for the Cardano ETF stands at 87%. Grayscale is developing a strategy to create passive ETFs without leverage or derivatives supported by Coinbase. Market analysts also note that multiple managers filing simultaneously might indicate a coordinated strategy to increase approval chances.
Grayscale's approach to establishing a Cardano ETF highlights the company's ambition to secure a leading position in the crypto ETF market. As the number of applications increases, the SEC will continue to evaluate criteria for approving such products.
