The United States Securities and Exchange Commission (SEC) has officially acknowledged NYSE Arca's proposal to list and trade shares of a Cardano-based ETF.
Acknowledgement of Cardano ETF Proposal
On February 24, the SEC formally acknowledged NYSE Arca's proposal to list and trade shares of the Grayscale Cardano Trust under Rule 8.201-E. This action kicks off the review process where the SEC will decide on approving or rejecting the ETF.
Filing and ETF Features
NYSE Arca initially filed the proposal using a 19b-4 form earlier this month, marking the 60th crypto ETF filing so far this year. If approved, the ETF will allow investors to gain exposure to Cardano (ADA) without directly holding the assets, with shares priced based on an index tracking ADA's value on major exchanges like Coinbase and Kraken.
Market Prospects and Reaction
The likelihood of the SEC approving a Cardano ETF by 2025 has increased by 10% in the past day. However, ADA's price has dropped more than 8% at the time of writing, despite an 11% increase when the 19b-4 filing was initially submitted.
The SEC's acknowledgment of Grayscale's Cardano ETF filing is part of a broader trend in reviewing cryptocurrency ETFs, which could positively influence digital asset regulation in the future.
