The U.S. SEC has acknowledged NYSE Arca's proposal to list the Grayscale Cardano Trust as an ETF, initiating the review process.
Grayscale's Expanding Ambitions
Grayscale, the largest digital asset manager, is expanding its ambitions beyond Bitcoin and Ethereum. The proposed ETF will track ADA’s market price through an index surveying major exchanges, including Coinbase and Kraken. The ETF designates Coinbase Custody Trust Company as the custodian and BNY Mellon Asset Servicing as the administrator.
Shifts in U.S. Regulations
This ETF filing comes amid shifts in U.S. crypto policy. Under acting SEC Chair Mark Uyeda, the agency has scaled back enforcement actions against major crypto firms, which has led to an influx of ETF applications.
Prospects for Cardano
If the SEC approves the Grayscale Cardano ETF, it could pave the way for other altcoin ETFs, making it easier for traditional investors to gain exposure to Cardano without directly holding the asset. Despite progress, ADA’s price remains largely unchanged, which may shift upon final approval.
The SEC's review will be pivotal for the future of the altcoin ETF market. The coming months are critical for Cardano and the broader crypto ecosystem.
